Executive Condominium in Singapore (EC)
“EC” commonly stands for “Executive Condominium.” Executive Condominiums are a type of housing option available in Singapore that combine elements of public and private housing. They are developed and sold by private developers but are subject to certain eligibility criteria and restrictions set by the government.
Executive Condominiums were introduced in the 1990s to cater to the “sandwich class” of Singaporeans—those who were not eligible for public housing but found private housing unaffordable. ECs are typically sold at a lower price compared to private condominiums during the initial launch period, and after a certain period of time (usually around 10 years), they can be fully privatized and sold in the open market.
To be eligible to purchase an Executive Condominium, applicants must meet certain requirements related to citizenship, income ceiling, and family nucleus. Additionally, there are specific rules regarding the resale and rental of EC units, aimed at ensuring the housing remains affordable for eligible Singaporean families.
What is an EC in Singapore
Executive Condominiums (EC) are a type of housing in Singapore that is designed to cater to the needs of the “sandwiched class” – people who earn too much to qualify for public housing, but not enough to afford private condominiums. ECs are built and developed by private developers, but with government subsidies and regulations in place to ensure affordability and accessibility for eligible Singaporean buyers.
They are typically priced at a 20-30% discount compared to private condominiums and come with a range of amenities and facilities, such as swimming pools, gyms, and playgrounds. ECs also have a minimum occupation period (MOP) of five years, during which they can only be sold to Singaporeans and Permanent Residents. After the MOP, ECs can be sold to foreigners and are fully privatised.
New Launch EC in 2023
Although the majority of Singaporeans have access to HDB BTO flats, not everyone qualifies for this type of home ownership. Individuals with higher incomes are ineligible to participate in BTO launches, leaving them with limited options such as purchasing second-hand properties or expensive private developments that exceed their budget. To cater to this growing segment of the population, the Singaporean government introduced executive condominiums (ECs) in 1996.
Executive condominiums bridge the gap between private developments and public flats, offering mid-range housing units. These properties have become highly sought after, primarily due to their potential for appreciation in value upon privatization. In 2023, one of the notable EC projects that has attracted the attention of prospective homeowners is located at West Avenue in Bukit Batok.
Here is a list of newly launched ECs in Bukit Batok for the year 2023:
Both ECs are located in the Bukit Batok planning area, which is a mature estate with good amenities and connectivity. Bukit Batok is well-served by public transport, with the Bukit Batok MRT station and the Bukit Batok Bus Interchange located nearby. The area is also home to a number of schools, parks, and shopping malls.
The prices for the upcoming ECs are expected to be around $1,500 psf. This is higher than the current average price of ECs in Singapore, which is around $1,400 psf. However, the prices are still considered to be relatively affordable, especially compared to condominiums.
If you are looking for an affordable and well-located EC, then the upcoming ECs in Bukit Batok are worth considering.
Here are some of the key features of the two upcoming ECs:
- Altura EC
- Located in a mature estate with good amenities and connectivity
- 99-year leasehold development
- Total of 660 units
- Estimated TOP date in 2025
- Prices expected to be around $1,500 psf
- Bukit Batok West Avenue 5 EC
- Located in a mature estate with good amenities and connectivity
- 99-year leasehold development
- Total of 510 units
- Estimated TOP date in 2024
- Prices expected to be around $1,500 psf
Here are some of the pros and cons of buying an EC:
Pros
- More affordable than condominiums
- Can be purchased by first-time homebuyers and second-timers
- Enjoys the same grants and subsidies as HDB flats
- Located in good locations with good amenities and connectivity
- High resale value
Cons
- Shorter leasehold period than condominiums
- Subject to additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD)
- Maintenance fees are higher than HDB flats
- Not eligible for HDB loans
Overall, EC in Singapore are a good option for homebuyers who are looking for an affordable and well-located property. However, it is important to weigh the pros and cons before making a decision.
You might be interested in the new launch condo in Singapore: The Reserve Residences