It has come to our attention that many people in the real estate market in Singapore are not familiar with executive condominiums. We thought that we should to create an article about this and share with you guys what is so special about an Executive Condominium.
So what’s new?
Executive Condominiums (ECs) are a form of hybrid public housing with the HDB rules regulations in place for the initial purchasers and that these HDB restrictions will be completely lifted 10 years after an EC project has been completed. Property analysts also pointed out that although the site is not next to an MRT station, it is a bus ride or short drive away from Serangoon Station and also enjoys good road connectivity with the Central Expressway within easy reach.
Unlike its private residential condominiums, the supply of ECs is very limited, and the only source of new EC sites is from the Government under their Government Land Sales Programme (GLS). There has been no new parcels that are released for Executive Condominiums (even on the confirmed list in the past two GLS exercises). Bearing in mind the 15-month waiting period from acquiring the site and market launch of the project that developers have to adhere to, ECs will be in short supply in 2017 and 2018. Only three new EC projects are expected to be launched this year, compared to five last year.
The recent additional subsidy for HDB Resale Buyers
It was announced in the recent Budget statement by Finance Minister Heng Swee Keat back in February that with immediate effect, the Central Provident Fund’s (CPF) Housing Grant will be raised to $50,000 for first-timer couples buying four -room or smaller HDB flats from the resale market. For those who purchase five-room or bigger flats, the grant has been raised to $40,000.
The CPF Housing Grant was previously capped at $30,000. Including the Additional CPF Housing Grant, capped at $40,000, and the Proximity Housing Grant, capped at $20,000, first-timer couples can now receive up to $110,000 in subsidies.
How about any subsidy for EC
If your household income is below $14,000 per month, you will be eligible to make an application for to buy an Executive Condominium. There is also CPF housing grant up to $30,000 based on your household income. Eligibility to apply an Executive Condominium takes consideration based on your family nucleus and household income.