HDB Executive Condominium (EC)
Singapore EC | HDB EC
ECs are hybrid properties that are a cross between an HDB flat and a private property. They have a minimum occupancy period (MOP) of five years, are not eligible for HDB loans, and are generally better suited to owner-occupiers than investors.
ECs are a kind of hybrid housing that combines public and private housing. For the first 10 years, an EC is classified as an HDB flat and later on becomes a private property. After this period, ECs can be sold to foreigners, Singaporeans, and Permanent Residents. However, ownership restrictions may change from time to time.
If you’re considering purchasing a condo in Singapore, you might want to consider buying an executive condominium by HDB. These are designed for owner-occupied living and attract a certain type of buyer. These buyers tend to be HDB upgraders or first-timers. The prices of executive condominiums are generally priced lower than new private properties in the area. Owner-occupied buyers might also consider investing in an executive condominium as a rental property.
|Project Name||Launch Date||Developer|
|Copen Grand (Tengah Garden Walk EC)||22 Oct 2022||CDL + MCL Land|
|North Gaia (Yishun Close EC)||23 April 2022||Sing Holdings|
|Parc Greenwich (Fernvale Lane EC)||11 Sep 2021||Frasers Property|
|Provence Residence (Canberra Crescent EC)||13 May 2021||MCC Land|
|Parc Central Residences (Tampines Avenue 10 EC)||23 Jan 2021||Hoi Hup|
|Piermont Grand (Punggol Sumang Walk EC)||01 Mar 2020||CDL|
Checklist for EC Eligibility Check
|Family nucleus||You have to qualify for any of the eligibility schemes:
You must be a Singapore Citizen (SC)
|Age|| At least 21 years old|
At least 35 years old, if they apply under the Joint Singles Scheme
|Monthly household income ceiling||Your monthly household income must not exceed $16,000.|
|Ownership/ Interest in property in Singapore or overseas other than HDB flat||All applicants and occupiers listed in the flat application:
Must not own or have an interest in any local or overseas private property
Private properties include but are not limited to houses, buildings, land, EC units and privatised HUDC flats. You are deemed as having acquired interest in a property which is:
Acquired by gift
|Ownership/ Interest in HDB flat||If you or any persons listed in the application have an interest in any HDB flat, you must dispose of the interest within 6 months of completion of the EC purchase.|
|Undischarged bankrupt||Prior consent must be obtained from the Official Assignee (OA) or the private trustee for the purchase of an EC unit.
However, occupiers who are bankrupts do not need prior consent.
|Previous housing subsidies||A subsidised housing unit refers to:
A flat bought from HDB
If you have not taken a housing subsidy before, you are a first timer and may buy an EC unit from a property developer.
If you have taken a housing subsidy, you are a second-timer and may buy an EC unit from a property developer. You have to pay a resale levy. Find out more on the resale levy payable.
If you have already bought 2 subsidised housing, you will not be eligible to apply or be listed as an essential occupier to buy an EC unit from a property developer.
Executive Condominium (EC) Compared to HDB and Private Condo
|BTO||Executive Condominium (EC)||Private New Launches|
|Low price. High affordability. Easy to sell after MOP with diverse and robust demand||Good entry price compared to private condos. Potential to sell at private condo prices are SSD is reached.||High price given that land acquisition cost is on the rise due to high inflation.|
|5-6 Years waiting time. Waiting time has increased due to supply constraints||3 to 4 Years waiting time. Slighter shorter waiting time compared to BTOs as the developer is not HDB.||3 to 4 Years waiting time. Slighter shorter waiting time compared to BTOs as the developer is not HDB.|
|Extension renovation needed as unit is mostly bare. Carpentry and flooring mostly not given which is the bulk of renovation cost.||Minimal renovation needed. Wardrobe, cabinet and flooring which are the most expensive are fully done and fitted||Minimal renovation needed. Wardrobe, cabinet and flooring which are the most expensive are fully done and fitted|
|5 Years Minimum Occupational Period. 5 Years to start from TOP of HDB Unit.||5 Years Minimum Occupational Period. 5 Years to start from TOP of EC Unit.||3 Years Seller Stamp Duty (SSD)|
|Cannot be sold to foreigner or any buyer without valid family nucleus||Can be sold to PR upon MOP. Can be resold to any foreigner like a private condo upon 10 years after TOP.||Can be sold to any party regardless if SSD is reached. SSD is matured at 3 Years.|
|Low Maintenance Fees||Middle Maintenance Fees||Higher Maintenance Fees|
HDB EC Quick Eligibility Check
|Family Nucleus||Minimum Age of Owners||Citizenship Nucleus||CPF Grand|
|Married Couples||21||Singapore Citizen / Singapore Permanent Resident||Yes|
|21||FR + SC/SPR Child||Yes|
|Fiancé/Fiancée||21||Singapore Citizen / Singapore Permanent Resident (Minimum 18)||Yes|
|Divorced/Widowed||21||Singapore Citizen / Singapore Permanent Resident Child||Yes|
|Single with Parents||21||Singapore Citizen / Singapore Permanent Resident||No|
|Joint Singles||21||Singapore Citizen (Minimum 35)||No|
|Orphan with all single siblings||21||SC/SPR (Minimum 21) + SC/SPR Late Parents||No|
|Orphan with unrelated orphan||21||SC (Minimum 21) + SC/SPR Late Parents||No|
Why ECs Might Be a Better Choice Compared to Private Condos
If you’re looking to buy your first property, an EC might be the better option. The Singapore Government subsidizes ECs, and the majority of them are located in mature districts. The ECs are primarily intended to provide affordable housing for citizens. However, these buildings are not built for long-term investment, so private condos are better options for buyers looking to maximize their investment potential.
Although the price gap between private and EC properties is small, the EC’s cost may be better for long-term investment. As an owner-occupancy property, an EC will have a higher internal rate of return than a private condominium. Furthermore, it is permitted to rent out units in an EC starting from year six. The rental rates are usually on par with private condos’, and this is a good way to cover the cost of holding the unit.
A private condominium, on the other hand, does not offer government subsidies. But a private condominium is still a good option if you’re looking for luxury living in a city. The cost of private condominiums can be very high, and they have higher maintenance fees.
Normal Payment Scheme Vs Deferred Payment Scheme
When searching for an executive condominium in Singapore, first time buyers are often undecided when choosing the payment scheme. In particular, there are two payment schemes which are available for buyers were looking to purchase the EC. The first payment scheme will be the normal payment scheme which is popular among first-time property owners as the pricing of the property would be cheaper.
How normal payment scheme works is that buyers would just have to pay for the downpayment of the property which is 5% cash and 15% CPF. The next stage of payment is based on the construction of the development. When the foundation of the property is reached, the developer will issue a call for the payment of the property through the buyers mortgage bank and the buyer would just have to pay 10% of the property purchase. For example, if the buyer buys a $1.03M property , the buyer will just have to loan $100,000 from the bank and pay the mortgage payment money to the bank for a loan of $100,000
Normal Payment Scheme to be more popular among buyers who do not have a existing loan as the price of the property will be cheaper . The next payment scheme will be the deferred payment scheme which is popular among existing owners with an existing HDB loan. The buyers of the EC currently serving mortgage loan for the HDB and if they select a normal payment scheme they would have to pay for their HDB loan as well as the EC loan at the same time and this would not be too financially feasible for buyers. Therefore, usually existing HDB owners tend to use the deferred payment scheme as this would mean that buyers only have to start servicing their mortgage when the construction of the EC is completed. However, as the developer gets the money later, in assisting buyers who choose the deferred payment scheme will have to pay 3% more for their property purchase. For example instead of $1.0 million for the property, usually the developer would sell the property with a 3% more increase in the property price which is $1.03 million property. This will mean that the buyers cash down payment of 5% will be slightly higher extra as the exercising fee of 15% which will also be slightly higher as well.
New Sites Available for Sale Under the Government Land Sales Programme Reserve List
Updated: 25 Nov 2022
The URA and the HDB has just released a new executive condominium site for sale for the developers to be under the second 2022 government land sales programme. The EC that is to be launch for sale is at Senja Close EC located at Bukit Panjang near to Bukit Panjang integrated transport hub.
Senja Close EC is not under the confirmed list for sale. It is released for sale under the reserve list for developers to bid for the plot of land. Senja Close EC will launch together with two other private condominium sites which is Clementi Avenue 1 and Jalan Tembusu Condo. You will be able to see details of the land parcel that is available on the URA website and HDB website.
Updated: 23 Nov 2022
The HDB has launched a total of 9655 flats time will be available for sale under the November 2022 to build to order BTO exercise. And according to statistics, the November 2022 BTO launch is the largest BTO sales exercise launched by HDB since its inception. Out of this 9655 flats that available for sale, a little over 1000 units are actually for sale under the sales of balance exercise and this brings a total of 10,726 available units which are new flats available for applicants to select. The application exercise will be from 23rd November to 1st of December 2022 and offers a wide selection of estate and sizes available for the residents to choose from.
In particular, some of the more popular ones include West Glades ar Bukit Batok, which is located in the mature estate as well as garden waterfront located at Tengah town which is located in an entirely new Green town. Other BTO launches include those at Yishun and Queenstown.