Executive Condominium or so called EC, was introduced in 1999. ECs are a hybrid type of housing, that fall between public and private housing. ECs resemble private condominiums with its guarded security, swimming pools, clubhouses, playgrounds and more. EC are built and sold by private developers, generally at a price lower than private homes because their land prices are subsidised by the Government. EC is governed by the Executive Condominium Housing Scheme Act under Housing and Development Board. Here are key factors to consider and determine your eligibility to buy an executive Condominium (EC) home.
# 1 Meeting Eligibility Requirement
To qualify for buying an EC unit, the potential buyers must first meet certain eligibility conditions under one of the following family nucleus with at least one SG citizenship in the scheme :
💡Public Scheme (applicant and spouse/ children)
💡 Fiance/Fiancee Scheme (Applicant and spouse-to-be)
💡 Joint Singles Scheme (SG Citizenship who are unmarried/Divorced / Widowed , age above 35 forming group of 2-4 person)
💡 Orphan Scheme (Applicant and siblings who are unmarried/ Divorced/Widowed) . At least one of the deceased parents was a SC or SPR.
💡 Other conditions includes combine monthly household income ceiling must not exceed S$16,000. Restrictions of ownership of local, private or oversea property, if have to dispose 30-months prior to application.
# 2 Minimum Occupation Period
Upon direct purchase of EC units from a developer, there is a minimum occupancy period of five years similar to HDB flats; during which the EC cannot be sold or rented out whole. After five years, the EC can only be sold to Singaporeans or Singaporean Permanent Residents (PRs). It can only be sold to foreigners after 10 years from development completion.
#3 CPF Housing Grant for EC
You and your co-applicant have NOT bought or sold a flat direct from HDB / DBSS/ Resale HDB with CPF housing grant/ Executive Condo with CPF housing grant previously from developer, you might be eligible for the CPF housing grant, which is a subsidy by the government for first-timer to buy an EC.
Subject to the combine income you and your co-applicant may be eligible, there are 2 types of CPF Housing Grant available for EC purchases form developer – Family Grant and Half-Housing Grant.
(AVERAGE GROSS MONTHLY INCOME OF ALL WORKING PERSONS, I.E. APPLICANTS AND OCCUPIERS)
|SC/SC HOUSEHOLD||SC/SPR HOUSEHOLD||HALF-HOUSING GRANT ^|
|$10,000 or lower||$30,000||$20,000||$15,000|
|$10,001 to $11,000||$20,000||$10,000||$10,000|
|$11,001 to $12,000||$10,000||Nil||$5,000|
|$12,001 to $14,000||Nil||Nil||Nil|
^ If you are a first-timer SC and your co-applicant is a second-timer who has previously taken one housing subsidy
You can use the CPF Housing Grants to:
- Offset the balance down payment for the EC and subsequent payments towards the purchase price.
- Reduce the mortgage loan for the EC.
- You cannot use the CPF Housing Grant for the minimum cash down payment (if any) and monthly mortgage instalment payments.
- CPF board will include the CPF Housing Grant in the computation of the CPF withdrawal limit.
# 4 Resale Levy for second subsidized home
For upgrader who has previously own a HDB flat or have taken housing grant previously from HDB, do note Resale Levy may apply for the flat type. This is a lump sum payment made to HDB when you purchase a second subsidized home.
Below table illustrate if the 1st subsidised flat (Direct BTO/Resale Flat with Grant, DBSS or EC from developer) is sold ON and AFTER 3-MARCH-2006*. Any flat sold BEFORE 3-March-2006, the resale levy payable vary from time to time.
|First Subsidised Flat type||Amount of Resale Levy Payable per Household ON and AFTER 3/3/2006|
|HDB/DBSS – 2 Room||S$15,000|
|HDB/DBSS – 3 Room||S$30,000|
|HDB/DBSS – 4 Room||S$40,000|
|HDB/DBSS – 5 Room||S$45,000|
#5 Financing your property
Unlike a HDB flat, you will not be eligible to apply for HDB loan. For EC unit you will need to secure a bank loan. An initial down payment of 25% either through Cash/ CPF is required for the purchase.
Do note that EC buyers’ Mortgage Servicing Ratio (MSR) cannot exceed 30% of their incomes. That means you cannot be paying more than 30% of your combined income in home loan repayments.
And of course, you are also held to the Total Debt Servicing Ratio (TDSR) rules stating that your total loan liabilities (including car loans, credit card debt and so on) cannot exceed 60% of your income.
Other additional cost such as legal fee, Buyer stamp Duty and Additional Buyer Stamp duty is applicable for purchasing the new EC. It is advisable to seek consultation and advice from the professional before you proceed with purchase of Executive Condo.
If you are planning to have your first EC home, 2020 might be a right time for you. These upcoming launches may be worth consider when you move on to next stage of life.
|Project Name||Launch Date||Location||No. Of Units||Tender
Avg Price *
|Jul 2019||Sumang Walk||820
|$1097 psf||~ 800m to Punggol MRT|
|496 units||$558 psf ppr||$1105 psf||~300m to Canberra
|548 units||$576 psf ppr||$1150 psf||~800m to SengKang MRT|
|Q2-2020||Tampines Ave 10||715 units||$578
|TBD||~1.4km Tampines West MRT|
We love to hear from you!
Simply fill in the form to let us know if you are keen to meet up for a cup of coffee for free eligibility assessment. Alternative, we can send you FREE REPORT on new launch information of Executive Condominium and floor plan.
*The information provides herein are for general reference purposes. It does not constitute any financial or investment advice. Buyer to seek relevant authorities or financial institute for advice of any sales and purchase eligibility in making any investment or other decision.