ECs are cheaper
As the government aims to make housing affordable for middle-income families, executive condominiums (ECs) have become an increasingly popular option. However, unlike private condominiums, ECs do come with a few drawbacks. These restrictions and their high price tag mean that they are not affordable by everyone.
First, ECs are designed for owner-occupation. Their units have 2 to 4 bedrooms. Private condominiums, on the other hand, often have one-bedroom units. This has contributed to the rise in private condominium prices in recent years. After privatisation, HDB upgraders can purchase ECs. Second, ECs are less expensive than private condominiums, which means that ECs are a better investment.
ECs have lower land prices, which is another factor. They are typically located on the outskirts of the city, and are therefore not near MRT stations or bus interchanges. Since ECs are not located near transit hubs, buyers of ECs must borrow from a bank in order to make the purchase. In Singapore, the maximum loan for EC purchases is 75% of the valuation.
They have better amenities
An Executive Condominium is a condo unit with many of the amenities of a private condominium, but its price is significantly lower. They are popular with young Singaporeans looking to buy a private property without breaking the bank. While EC prices in Singapore have increased dramatically in recent years, this type of unit still remains an attractive option for many buyers.
In recent years, there have been a growing number of EC launches in Singapore, but these numbers still remain low when compared to the demand. When an EC is launched, people flood in to subscribe to it, and competition is fierce. As of January 2019, there have been three EC launches this year, including two by Asia One and five by Piermont Grand.
They are smaller than private condos
While EC prices are generally smaller than private condominium prices in Singapore, there are some differences between them. For starters, executive condos are usually more exclusive than private condos, and they tend to be located in suburban areas that are further away from business districts and MRT stations.
While both EC and private condominium prices have increased in recent years, executive condos are still affordable and attractive for young Singaporeans looking to purchase a private property. While EC prices have gone up dramatically over the past few years, they remain a popular choice for many buyers.
Another reason why EC prices are smaller than private condominium prices is that ECs are designed for owner occupation. While private condominiums often feature 1-bedroom units, ECs offer two to four-bedroom units that are suitable for a family. The addition of more 1-bedroom units in private condominiums may have contributed to the price increase. But ECs are still an affordable option for HDB upgraders and may offer good resale capital appreciation.
They are sold like regular resale flats
ECs in Singapore are sold in the same manner as regular resale flats in the country, but there are some differences. First of all, only Singapore citizens and Permanent Residents are eligible to buy ECs. This means that you will need to comply with the HDB rules for EC purchases. Second, you must live in your EC for five years before renting or selling it. Third, you can only sell your EC to a Singapore citizen or Permanent Resident, and you will have to pay HDB resale levy.
Another key difference between ECs and private condos is price. ECs are cheaper than private condos. Because the government subsidizes the land costs, EC prices are generally around 25%-30% lower at launch. In addition, the size of an EC is usually suited for the needs of an average Singaporean household.
They are further away from MRT stations
As the price of ECs are generally cheaper than private condominiums, the government is offering subsidies to encourage more people to invest in this kind of housing. These subsidies can reach up to $30,000 for a Singaporean household. As a result, ECs are becoming a popular option for those looking to buy their first condo.
The new CL is expected to boost house sales and increase the availability of affordable housing. The proximity of CL to MRT stations is expected to boost housing transactions.