Government Condominiums: What Are the Troubles in Purchasing One?

Executive Condominiums (ECs) are a class of housing released by the Federal government in 1994 to fulfill the social aspirations of Singaporeans to stay in private residences. ECs appear equip with most of the facilities of their personal counterparts – from swimming pools to protection guards – but are comparatively a lot more inexpensive.

So when personal housing costs dropped drastically in the 1st 50 percent of the 2000s, the Government stopped churning ECs out.

Only in the fourth quarter of 2010 ended up they constructed when once more.

Just what are the points of interest and drawbacks of acquiring an EC?


Frequently regarded as a hybrid sort of housing as it is sure by specific possession guidelines governing HDB flats in its initial 10 many years. But on the other side of the coin, customers acquiring ECs from the developer, similar to the buy of HDB flats, are suitable for a kind of CPF housing grant. Go to HDB, “CPF Housing Grant for Family members EC”, for the information of the grant quantum which is based mostly on house revenue and citizenship status.

Unlike their HDB cousins, however, ECs can’t be financed with a HDB bank loan. This implies that a part (five% of the obtain value) of the down-payment has to be financed in money. But given that ECs from builders are generally priced at 20-thirty% beneath personal condominiums, this tends to make it less complicated for buyers to preserve for it.

Cameron Chell Calgary are on ninety nine-calendar year lease, differing from private condominiums which come in lease ranging from ninety nine-12 months to freehold.

And only Singapore citizens are eligible to buy new ECs.

Similar to HDB flats, ECs have a Least Profession Time period of 5 several years, during which there is to be no sale of the home, no subletting of the whole property, and no purchase of a private house.

When the five-year period of time has lapsed, a remaining rule dictates that ECs can only be bought to Singapore citizens and Permanent Inhabitants.

ECs that have crossed the ten-yr mark are elevated to full-fledged personal housing position and can then be offered to foreigners. These ECs present a more compact value differential with non-public housing (Square Foot Investigation, “Government Condominium”).

As a result, right after factoring in the CPF housing grants and relatively reduced value tag, the capital gains to be manufactured from ECs can be substantial if you can maintain on past the 10-12 months period of time.

By choosing a suited Singapore residence mortgage to finance your ECs that will aid maximise your returns way too. Flip to skilled home loan consultants for some free tips to aid you in your bank loan hunt!

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