In 2017, Executive condominiums (ECs) are among the best selling projects. This type of housing is a hybrid residential property between public housing and private housing. ECs are popular among the middle class where the buyer’s total combined income does not exceed $14,000 a month. There are other requirements such as eligibility conditions on Singaporean household and a family nucleus. ECs are made affordable by the lower land prices paid by the real estate developers. The following are the 3 main reasons why you should invest in an EC unit:
Completed condominium facilities
While ECs are cheaper than condominiums, the facilities provided in ECs are similar and of the same quality in terms of finishings. ECs which are recently launched have come up with innovative ways to differentiate themselves where smart home technology are incorporated into their offerings.
Due to the restrictions and requirements imposed by HDB on the buyers, ECs have remained affordable over the years. Developers of ECs have paid significantly lesser for the land sold by HDB. Thus, an indirect subsidy is created for the buyers as the EC prices are lower than the price of a condominium in the same vicinity. Grants of up to $30,000 are also available for 1st time eligible buyers.
Privatised condominium after 10 years, profits ensued
An EC development will be partially privatised after the 5 years minimum occupancy period imposed by HDB. Single Singaporean/PR buyers are eligible to purchase such EC unit. Upon the 10th year milestone, Foreigners can then own a unit at the EC turned private condominium. By offloading the EC unit following partial/full privatisation, the owners are able to earn a decent profit (indirect subsidy).
History has shown that investing in an executive condominium is very profitable. We would highly recommend eligible homeowners to take advantage of this opportunity.