Executive condominiums (ECs) in Singapore are a type of housing built by private developers and sold to the public. They are popular among young couples and families as they are relatively more affordable than private properties yet offer many of the same amenities.
However, there are also some drawbacks to purchasing an EC. In this blog post, we will explore both the pros and cons of executive condominium in Singapore so that you can make an informed decision before buying one.
Benefits Of Buying Executive Condominiums In Singapore
An executive condominium (EC) in Singapore is a public-private housing scheme for the middle-income group. ECs were introduced in 1994, and since then, there have been many successful developments. ECs are very popular among young couples and families as they offer many benefits.
Some of the key benefits of buying executive condominiums in Singapore include:
- Affordable prices: ECs are priced 20% to 30% cheaper than private condos. This makes them a more affordable option for young buyers who may not be able to afford a private condo.
- Good location: Most EC developments are located in prime areas with good amenities and transport links. This makes them a convenient option for busy families or couples who work in the city.
- Quality homes: ECs are built to high-quality standards and come with modern facilities. This makes them a comfortable option for families or buyers who are looking for a luxurious home.
- Potential for capital appreciation: ECs are public-private housing and have a 99-year lease. This means that they can appreciate in value over time, making them a good investment option.
- ECs are more affordable than private condos: This is because ECs are sold at a discount of up to 30% off the market price.
- ECs have good facilities: Most EC developments come with comprehensive condo facilities such as swimming pools, gyms, and function rooms.
- ECs are centrally located: Many ECs are located in prime locations near MRT stations and amenities.
- ECs come with quality finishes: Most developers put in high-quality finishing touches in their developments.
- You can get an HDB loan to buy an EC: You can enjoy the same low-interest rates and CPF Housing Grants when buying an EC with an HDB loan.
If you’re considering buying an executive condominium in Singapore, these are some of the key benefits that you can enjoy.
Drawbacks Of Executive Condominiums In Singapore
However, there are also some drawbacks of executive condominiums in Singapore that potential buyers should be aware of.
For one, these properties can sometimes be more expensive than other properties.Additionally, they also come with a minimum occupation period (MOP) of five years, during which owners are not allowed to sell their units on the open market.
After the MOP expires, owners can then sell their units at a profit. However, they will have to pay a resale levy if they do so within the first ten years of ownership.
If you’re thinking of buying an executive condominium, weigh the pros and cons carefully before deciding. While ECs offer many advantages, there are also some disadvantages to take note of, such as the minimum occupation period and resale levy. Ultimately, it is important to choose a development that meets your needs and budget.