” Buying an EC is like paying for a Corolla and getting a Lexus.”
– Minister for National Development, Mr Khaw Boon Wan
The generalised misperception with property investments is that those with greater chances of better ROI (return on investment/ yield) such as Freehold, Landed & ECs, tend to be further away from the conveniences of a matured estate (i.e. accessibilities such as MRT/ LRT/ expressways & amenities such as malls/ food/ clubs). Debunked are those myths with the next few upcoming EC launches in Singapore!
Why Executive Condominiums (EC)?
According to PropNex’s research, new EC launches are usually priced 20 to 25% lower than private condos, thus proving these hybrid of public & private housing largely popular among middle income couples or upgraders (also known as the ‘sandwich class’ who may not be able to/ cannot afford private properties & at the same time, exceeded the incoming ceiling to qualify for BTO flats) when this scheme was introduced in 1996 when private home prices were at their peak.
Example 1 in Jurong: Lake Life EC launched in Nov ’14 at S$857 psf VS Lakeville Condo launched in Apr ’14 at S$1,309 psf
Example 2 in Punggol: The Amore EC launched in Jan ’15 at S$796 psf VS Watertown Condo launched in Jan ’12 at S$1,169 psf
Let’s Compare the Prices of a Recently Transacted EC VS their respective Launch Price $$
Example A in Choa Chu Kang: The Quintet EC completed in 2006 launched at S$378 psf ▲ price gain of 110% at S$794 psf in Jan ’15
Example B in Bishan: Bishan Loft EC completed in 2003 launched at S$418 psf ▲ price gain of 184% at S$1,179 psf in Dec ’14
Example C in Ang Mo Kio: Nuovo EC completed in 2004 launched at S$402 psf ▲ price gain of 132% at S$936 psf in Apr ’15
The best thing about ECs is their Higher Capital Appreciation Potential as they can be sold in the Open Market (like that of a Resale HDB flat but under a private property status) after a Minimum Occupation Period (MOP) of 5 years, and after 10 years, the EC fully privatises (like that of a Private Condo as they can even be sold to Foreigners) with a larger pool of potential buyers.
Other benefits of an Executive Condominium (EC) include:
1. Additional Buyer’s Stamp Duty (ABSD) is NOT APPLICABLE.
2. Seller’s Stamp Duty (SSD) is NOT APPLICABLE for EC as owners have to fulfill 5 years’ minimum occupation period (MOP).
3. Deferred payment is available, 20% down payment (let us assist you if you have any deposit issues), 65% upon TOP and final 15% upon legal completion.
4. There is no restriction to invest in commercial/industrial property later on, as long as there is no residential component in the commercial unit.
5. Improved design and features. EC developers are now offering more to attract buyers wishing to upgrade to a “subsidized” private residential lifestyle living.
6. Great lifestyle – enjoy the same lifestyle and facilities as other condominiums.
7. Possible grant (CPF Housing Grant of $20,000-$30,000 for first timers).
8. Budget-friendly entry price – lower quantum compared to mass market condominiums.
9. Comparable or better potential future capital appreciation to condominiums (more likely to be sold at a good profit after MOP).
10. Can be sold under private property status after MOP of 5 years to Singapore Citizens and PRs, and to foreigners after 10 years – hence a larger pool of potential buyers.
11. Good potential for rental yields as design and facilities are similar to any private condominiums.
Have got some Burning Questions about ECs or BTOs or towards your Finance Issues/ Housing decisions?
Watch this Space for FREE Tickets to our Upcoming Seminars & Talks!
Book an Appointment to be treated as our VVIP. View any of our upcoming new EC launches, Cut the Queue & Chit-chat over Coffee on eligibility here!
Looking for an EC with no resale levy, penthouse or dual-key that has been discontinued by the new HDB regulations? There’s no need to look any further, get the last units available now before they are all gone!
For more info on How to Buy an EC or to Fix an Appointment to view any EC project, contact us here: