EC or Executive Condominium, is a privilege product for only a privileged group of “sandwiched” class, in Singapore.
When the general public talks about EC, there is a general EC misconception is ECs are not Condominiums, they are in fact high end “Flats” that can only be purchased by Singaporean households. But the fact is that ECs and Condos are actually the same type of products built by the same group of developers also building private Condos. Only difference, its that government controls EC developers and they can only sell new ECs to Singaporean household fulfilling certain prerequisites. Not the mention, there is a minimum occupancy period of 5 years to sell to Singapore Citizen or Permanent Resident and 10 years to sell to Foreigner.
Why develop ECs, as with any developed countries in the world, Singapore is faced with the problem of having a large pool of middle class household/families who are better off then the average Singaporean families. Their income level has exceeded the cap for subsidised BTO/DBSS flats, however due to the ever raising cost of living, they are unable to afford a private condominium.
In lieu of this, the Singapore government come up with this special product targeting this special group of families. By pricing ECs at a price about 20% or more lower then that of a similar private condominium in the same area makes the EC immediately affordable by this group of families.
To prevent the abuse of this system. A Minimum Occupancy Period (MOP) of 5 years to be required before the unit can be sold to a Singapore Citizen (SC) or Singapore Permanent Resident (SPR). For sales to Foriegners, MOP of 10 years had to be met. This MOP prevents the “flipping” of properties for monetary gains, as the primary goals of this scheme is to make allow people to upgrade their lifestyle.
Currently, in the market there is a huge stock of new ECs, as the government release a large number of EC land sales previously in an attempt to boost supply of ECs in Singapore to ease the short supply of housing in the past years.
To know more about these products as well as to if you are eligible for it, please use contact form below.
You may also follow this link to read more about EC Eligibility.
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