In Singapore’s real estate market, we have different types of homes to satisfy the different needs of the people. We have public housing, Executive Condominiums, non-landed private homes, and the landed private homes. But wait, aren’t Executive Condominiums the same as private homes?
Executive Condominiums was first introduced in 1996 because the government realized that more and more young people dream of living in condominiums but are not able to afford the high costs and monthly mortgage. Yet these groups of middle income hopeful homeowners are not able to buy public housings as they had exceeded the income ceiling for HDB flats. In order to try and fulfill these young homeowners’ dreams, the Executive Condominiums were created. These EC have the same facilities and amenities as that of private development, they come with share values and maintenance fees just like the rest of the condominiums and are developed by private developers who bid for lands under the Government Land Sales Programme. These developments fall under the Housing and Development Board’s rules and regulations, including grants available to these EC homeowners. These flats will become privatized after 10 years, and they will fulfill the Minimum Occupation Period of 5 years before the homeowner(s) can sell it off in the resale open market. When the development has reached its 10th year mark, it can be sold under the non-landed private home in the market and much cheaper compared to the private estates because the initial buying price is much lower. This will enable buyers to enjoy a larger profit in the long run. To find out if you are eligible to buy an EC, check out this HDB website for more information: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/eligibility/executive-condominiums
The new sale of Executive Condominiums was halted for a few years because there was a surge of Built To Order flats and it will affect resale HDB owners significantly when there is an oversupply of public housing in the market. However, now that this issue is under control, in 2019, we saw the first introduction of Piermont Grand EC at Punggol, and in the first quarter of 2020 there’re another 2 new developments of ECs – Parc Canberra and Ola. Here’s a brief description of the individual projects:
Parc Canberra EC, jointly developed by Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd, is located at Canberra Walk, just 300m away from Canberra MRT Station and is just across the road from the upcoming Bukit Canberra, an integrated sports and community hub project set to open progressively from this year. Homeowners will also be spoiled for choice when it comes to shopping and eating, after all we Singaporeans just love our food, don’t we? There’s the Canberra Plaza right beside Canberra MRT Station, Northpoint City just one stop away in Yishun, Sun Plaza, Sembawang Shopping Centre and the infamous Chong Pang Food Market where you can find all your fresh ingredients from the wet market. Units available range from 2 bedrooms to 5 bedrooms, depending on the individual’s family nucleus and preference, there will be a home for everyone!
OLA EC is located along Anchorvale Crescent and developed by a Singapore-listed developer Anchorvale Pte Ltd. There are a total of 548 units, 9 blocks of 16 storeys per block, and the carpark is in the basement, so you don’t have to worry about your car baking under the hot sun. The place is conveniently situated just a 2-minute walk to Cheng Lim LRT Station with a variety of retail shops and eateries at Seletar Mall and Compass One. If you are one who loves the outdoors and nature, prep up your picnic basket and bring along your bicycles for a fun-filled day at Sengkang Riverside Park! If you intend to register your child in Nan Chiau Primary, you’ll be glad to know that OLA EC is within the 1km range to the school. This also means that there’ll be many people vying for a spot in OLA EC!
WAIT! Before you start getting excited over these hard-to-resist affordable homes,
There are a few general points you might want to consider before buying an Executive Condominium:
- Executive Condominiums can be a great investment plan for some, but it is not suitable for everyone. Homeowners who are currently holding on to a private property or used to own one in the past 30 months are unable to buy an EC.
- The development has not yet become privatized even after the current flat reaches its Minimum Occupation Period of 5 years, thus it is still considered a public housing and the transaction value will be based on the surroundings public housing market rates.
- Sellers of private homes are able to sell their homes after 3 years to avoid the Seller Stamp Duty whereas an EC homeowner will also have to wait out an additional 2 years due to the MOP rule and if the transaction value increases during that 2 years, you will be losing out on opportunities.
With that said, it is a good kick start as a first matrimonial home for young couples in their property planning, with the luxuries of the amenities at your doorstep. If you would like to know more information regarding your affordability to buy an EC or looking to sell off your current EC to buy another private home, feel free to give me a call where we can discuss your plans and help guide your dream home.
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