There are many advantages of executive condominiums, or ECs, as compared to private condos in Singapore. For one thing, ECs cost a fraction of what private condos do. They also generate excellent capital gains and are located at desirable locations. But, what are some drawbacks of ECs? And, which are the best locations for an EC? Read on to learn more.
While most ECs are built on public land, they have certain features that set them apart from private condos. These features include gyms, swimming pools, and gated security. ECs begin as HDB units, but can be sold to Singaporeans, Permanent Residents, and foreigners after five years. ECs do not qualify for CPF housing grants and cannot be leased out during their initial tenure.
One major reason why ECs are so popular in Singapore is affordability. ECs are much cheaper than private condos and are heavily subsidised by the government. In fact, ECs are cheaper than HDB flats and private condominiums. Because of the low cost, demand for new EC projects is always high. In Singapore, there are currently no plans to build any more ECs, but prices are still significantly cheaper than HDB flats.
While private condos are usually cheaper, some people would rather invest in an EC, which is government-subsidised and comes with condo-like facilities. ECs are cheaper than private condos in Singapore, but they come with restrictions, such as the 10-year occupancy period. While ECs are less expensive than private condos, they are also bound by HDB’s rules, such as the 5-year minimum occupancy period, various eligibility schemes, and resale levy.
The price of land for executive condominiums must be very low, as they aren’t allowed to be built on top of a private condo. Most EC sites are in the suburbs, some of them quite a distance from town centres. Because of this, you won’t find an EC in the most prime areas of the city. Singapore is an island nation with 733.1 square kilometres of land, making it the 178th largest country in the world.
If you are looking for a bargain property, you should consider investing in an Executive Condominium in Singapore. You can make high capital gains on an EC if you own it for at least five years or ten years. You also get a higher capital appreciation in the future because you will be able to sell it to a wider pool of prospective buyers. As for rental yields, an EC is similar to a private condo.
An EC is cheaper than a private condo, but with the strings attached. You can sell your EC quickly or wait for it to appreciate over a period of time. After about 10 years, ECs are transferred to private ownership and experience high capital appreciation. As an owner, you can even qualify for an HDB grant if you are eligible to purchase an EC. You can also sell your EC to a Singaporean or a PR once the 10-year holding period is over.
As a result of Singapore’s high population density and limited amount of land, executive condos in Singapore are located at “ulu,” or far-flung, locations. Although these locations may be more convenient, the cost of such apartments is likely to be higher than for those living in the city’s downtown core. The price of a typical unit in a “ulu” location can range from $160,000 to $400,000 – more than double the cost of a similar condo in a town centre.
These developments are largely unoccupied and are in remote areas. However, they are growing in popularity and will soon be TOP in 2026. The location is near three new MRT stations and a planned Jurong Region Line. It is also near the KJE and PIE highways. The property has good connectivity to various areas in Singapore. In addition to its prime location, many ECs in Singapore are located at “ulu” locations that are not in the heart of the city.