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Executive Condominium Buying Guide

What you need to know about buying an Executive Condominium (EC):

Am I eligible to buy an EC?

To be eligible to buy an Executive Condominium, you must fulfill the following criteria:

  • Only Singaporean couples and Singaporean/Permanent Resident couples can buy an EC unit.
  • You must form a family nucleus and be at least 21 years old or join up with other singles that are at least 35 years old.
  • Your total monthly household income may not exceed SGD$14,000.
  • You may not have bought a new EC or HDB flat or with a grant more than once.
  • None of your family nucleus in the application has owned private property within the last 30 months.
  • Buyers have to fulfill a mandatory five-year minimum occupation period (MOP) before they can rent out or sell the EC unit.

For more extensive details about eligibility criteria, please contact us.

Can I buy a new EC if I currently own an HDB flat?

Yes, you can, subject to these criteria:

  • Have not bought a new EC or HDB or resale flat with a grant, more than once in total.
  • Have already stayed in your flat at least 5 years, if bought direct from HDB/the developer or with a grant.
  • Will be able to fulfil your MOP before your new EC is completed, if your resale flat was bought without a grant.
  • However, you must sell your current flat within 6 months of TOP or get vacant possession of your new EC unit.

Can I sell or rent out my EC unit?

  • You must fulfill your Minimum Occupation Period (MOP) first.
  • Thereafter, your EC unite can be rented to anyone, or sold to Singapore citizens or Permanent Residents.
  • After 10 years, it can be sold or rented out to anyone, including foreigners or developers.

What benefits do buyers get?

For First-Time Applicants:

  • You may get the CPF housing grant of up to $30,000 to help pay the 15% down payment:
  • You will get priority in selecting a unit. 70% of units are reserved for 1st time buyers in the first month of launch.

Second-Time Applicants:

  • You can get a bank loan of up to 80% for the new EC purchase, even if you have an existing mortgage on your current home, unlike for private property.
  • ECs allow you to buy a condominium at a large discount (20% to 30%) compared to private condominiums, that will eventually be partially privatized after 5 years, and fully privatized or equivalent to private condos after 10 years.

What are the pros and cons of buying new ECs vs HDB BTO flats?

Buying a new BTO flat directly from HDB:

The Pros:

  • It is a lot cheaper.
  • The maximum household income ceiling is $12,000 to buy a unit.
  • You may be able to get HDB loan.

The Cons:

  • No facilities.
  • Not security on premises.
  • You do not own the land. The land reverts back to HDB after the 99 years lease.
  • Around 5% of flats get to enjoy Selective En Bloc Redevelopment (SERS), but the decision does not lie with you. Your flat will not serve as a wealth or investment vehicle in the long-term.

Buying a new EC:

The Pros:

  • Full condominium facilities.
  • Security on premises to control access.
  • Essentially a condominium. After 10 years, there is no difference between a private condo and an EC.
  • You co-own the land and communal facilities. Theoretically the land reverts back to the state at the end of the lease, but there is the option of selling En Bloc to developers before.

The Cons:

  • Higher price, but potential capital gains may compensate the price difference.
  • Maximum household income ceiling is $14,000 to buy a unit.
  • No HDB loan available. You will need to use bank loan instead.

What is the payment schedule like for buying an EC?

  • At the time of booking the unit, a 5% cash deposit is required via cheque or cashier’s order.
  • Within 9 weeks of booking the unit, a further 15% will be due, which can come from the CPF Housing Grant, CPF funds and/or cash.
  • The remaining 80% is payable progressively. This means payments will be made to the developer as and when construction work reaches certain stages. These payments can come from CPF funds, a bank loan or cash. If you take out a loan, your monthly installments start small and slowly increase.

For more information on loan interest rates, loan eligibility and the maximum amount you can loan, contact us.

What costs are involved?

Stamp Duty:

  • Purchase Price x 3% – $5400
  • This is payable within 2 weeks of signing the Sales and Purchase agreement, or around 5 to 6 weeks after booking the unit.
  • You must sign and return the Sales and Purchase agreement to the developer within 3 weeks of receiving it.

Legal Fees:

  • Approximately $2,500 to $3,500 will be payable to your solicitor.

Bank Loan Fees:

  • If you’re taking out a bank loan, bank admin fees and valuation charges may be involved. These will typically be less than $1,000.

How long does it take to get approval?

  • The time it takes for an EC application to be approved can vary widely. Please contact us here to learn more.

Do I have to pay any agent commission fees?

  • There are no agent commission fees.
  • We provide you with all the information, help you book your unit of choice directly from the developer and handle all the documentation, without charging you anything.
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