Executive Condominiums (ECs) are developed and sold by private developers. They can be considered a type of hybrid housing falling between an HDB flat and a private condo. It comes with facilities like private condos but is subjected to certain HDB eligibility and ownership rules.
Hence, they are priced higher than the typical HDB flats, but lower than similar mass-market private condos.
In other words, they are targeted at the sandwiched class of Singaporeans who aspire to live in a condo but find private housing out of their financial reach. You may find out more information about executive condos at: Executive Condo Review – Is It a Good Investment Property?
To navigate to each section of this executive condo guide, please click on the links in the Table of Content below.
Executive Condo Guide – Frequently Asked Questions (FAQ)
Unlike private condos, there is a multitude of rules governing the purchase of ECs. This may be confusing to many, especially first-time buyers, when it comes to understanding the eligibility criteria, booking process, and financing, to name a few important areas.
Hence, we have produced an executive condo guide with frequently asked questions (FAQ) that highlight some important information to help buyers navigate through the entire buying process.
Eligibility and Ownership Criteria for ECs
If I am interested in purchasing a new EC unit, who can I approach?
You can approach the marketing agent for the EC officially appointed by the developer. Please WhatsApp me for the latest information and market developments.
Can I buy another EC unit if I currently already own one?
If you are already an owner of an EC unit, you must dispose of your current unit in the open market and wait out 30 months before you can submit an application to buy another new EC unit.
Can I apply for a new EC/BTO flat before the completion of my 5-year MOP?
No. You have to complete the 5-year MOP before you can apply for your next new EC/BTO flat. You also have to wait out 30 months after disposing of your existing EC/BTO flat before you can apply.
Can I buy an EC if I am a single Singaporean?
You cannot buy an EC unit alone. You can buy one under the Joint Single Scheme with another single Singaporean, but both of you must be 35 years and above.
If I am a Singapore Citizen (SC) and my spouse is applying for his/her Singapore Permanent Residency (SPR), do we have to wait 3 years before applying for an EC unit?
A SC/SPR household is considered a Singapore citizen household. Hence, there is no need to wait for 3 years to apply for an EC unit. Once your SPR spouse has received his/her “blue IC”, you can start applying.
Can I buy an EC unit if I currently own a private property in Singapore or overseas?
No, if you or your spouse owns a private property in Singapore or overseas, or have not disposed of any within the last 30 months, you are not eligible to buy an EC unit from the developer.
Can I buy or invest in private residential property in Singapore or overseas after I have bought an EC unit?
Yes, but only after you have fulfilled the 5-year Minimum Occupation Period (MOP) period after purchasing your EC unit.
I have applied for an HDB BTO flat but have not booked it yet. Can I apply for a new EC unit?
Yes, if you have not booked an HDB BTO flat. Once you have booked a new EC unit, HDB will cancel your application for the BTO flat.
If I have booked an HDB flat and have signed the Agreement for Lease, can I buy a new EC unit?
If you have booked a BTO or Sale of Balance flat launched on or after March 2012 and later decide to cancel the booking, you will be barred from applying an EC unit within one year after the cancellation.
If I am undergoing a divorce proceeding and it is yet to be finalised, can I apply for a new EC unit with my fiancé or fiancée?
No. You can only apply for a new EC after your divorce has been finalised. That is, after you have obtained the Certificate of Making Interim Judgement Final or if you are a Muslim, the Divorce Certificate.
If my household income exceeds the $16,000 eligible ceiling, can I still apply for an EC?
If your income ceiling exceeds the $16,000 eligibility ceiling, you will need to submit an application to the developer first for their assessment. Even if they allow your application to proceed, HDB approval will still be needed and they will evaluate the appeal on a case-by-case basis.
It is advisable to check with your property agent beforehand whether the developer is willing to accept your application before proceeding any further. If your household income is marginally above the eligible ceiling and you have a good case, your chance of getting approved by HDB is high.
What other situations may HDB reject my EC application other than exceeding the household income ceiling?
HDB is unlikely to reject your application if you meet all their eligible criteria. Rejection may occur due to untruthful declarations of income or appeal reasons.
HDB Housing Grants
How much CPF housing grant am I entitled to?
The CPF Housing Grant is a housing subsidy provided by the government. Like HDB flats, it will be credited to your CPF account. The housing grant is to assist eligible first-timer families to kickstart their homeownership process. The amount of the grant will depend on household income, up to a maximum of $30,000 (please refer to the table below).
|Average Monthly Gross Income of Applicants/Occupants||FAMILY GRANT||Half Housing Grant
First-Timer (FT) SC & Second-Timer (ST) Who Has Previously Taken 1 Housing Subsidy
|SC Household||SC/SPR Household|
|$10,000 or lower||$30,000||$20,000||$15,000|
|$10,001 to $11,000||$20,000||$10,000||$10,000|
|$11,001 to $12,000||$10,000||Nil||$5,000|
|$12,001 to $16,000||Nil||Nil||Nil|
|*SC – Singapore Citizen *SPR – Singapore Permanent Resident|
Am I eligible for the CPF Housing Grant if I apply to buy an EC unit where its Temporary Occupation Permit (TOP) has been issued?
Yes, if you satisfy the conditions for the CPF Housing Grant and the developer has not served you the Notice of Vacant Possession.
Are there any other housing grants other than the Family Grant for the purchase of an EC unit?
No, there are no further housing grants.
Can I use CPF Housing Grant to pay for the down payment of the EC unit?
Firstly, you must pay the first 5% in cash. Your housing grant will be credited into your CPF account and you can use it to pay for the balance of the 15% down payment on the purchase price of your EC unit.
When I sell my EC unit, do I need to refund the CPF Housing Grant to the government?
When you dispose of your EC unit, all CPF monies, including the CPF Housing Grant, that have been used to finance your purchase will need to be returned to your CPF account.
However, you can draw on them for your future housing purchase, subject to the prevailing CPF rules and policies.
Executive Condo Financing
How do I finance the purchase of my EC unit?
HDB does not provide financing for the purchase ECs. Similar to private property buyers, EC buyers will have to secure their mortgage financing from financial institutions regulated by the Monetary Authority of Singapore. Monthly mortgage instalments will be subjected to the Mortgage Servicing Ratio (MSR).
For financial and affordability calculations, please contact me for an obligation-free consultation.
How much do I have to pay when I book a new EC unit, and when I proceed to sign the Sale and Purchase Agreement?
You must pay an option fee equivalent to 5% of the purchase price of the EC unit in cheque or cashier’s order upon booking. A further 15% of the purchase price is payable when you sign the Sale and Purchase Agreement.
Can I get an HDB loan for the purchase of an EC unit?
There is no HDB loan for the purchase of ECs. Buyers will have to arrange for their own mortgage financing through banks and financial institutions.
What purchase schemes are available for the purchase of an uncompleted EC unit?
There are 2 purchase schemes for the purchase of an uncompleted EC unit – Normal Payment Scheme (NPS) and Deferred Payment Scheme (DPS).
Normal Payment Scheme (NPS), which is also known as Progressive Payment Scheme (PPS), applies to properties that are still under construction, also known as Buildings Under Construction (BUC). It refers to paying by instalments, typically 5-10% of the property purchase price after certain stages of the construction have been completed.
The Deferred Payment Scheme (DPS) allows buyers to put down a 20% down payment and pay the remaining 65% of the purchase price of the property after receiving the Temporary Occupation Permit (TOP). In simple terms, when the EC unit is ready for occupation.
Do note that under DPS, the prices are usually 2-3% higher, which compensates the developer for receiving the bulk of the payments at a later stage.
Resale Levy Payable
The resale levy is imposed to reduce the housing subsidy on the flat buyers’ second subsidised flat to ensure a fairer allocation among flat buyers.
The amount of resale levy will depend on the type of HDB flat you own (refer to the table below).
|First Subsidised Housing Type||Resale Levy Amount|
|First Subsidised Housing Type||Recipient of CPF Housing Grant (Singles)|
|2-room/ 2-room Flexi flat||$15,000||$7,500|
|Executive Condominium||$55,000||Not applicable|
For example, if you sell off your EC unit bought with HDB housing grants, you will need to pay a resale levy of $55,000 when you buy a second subsidised flat from HDB or take over ownership of a subsidised HDB flat.
However, if you buy a private property, there will be no resale levy.
Penalty for Termination of EC Purchase
How much will I forfeit if I give up my EC unit after paying the 5% booking fee but before executing the Sales and Purchase Agreement?
The developer will forfeit 25% of your booking fee.
How much will be forfeited if I terminate the purchase of my new EC unit after executing the Sale and Purchase Agreement?
You will be subjected to forfeiture of 5% of the purchase price if you terminate your purchase after signing the Sale and Purchase Agreement.
How much will I forfeit if I have already exercised the Sales and Purchase Agreement, but have not taken possession of the unit?
The Developer can recover from the instalments previously paid by the buyer all interest, property tax, maintenance charges and other amounts owing and unpaid under the Sale and Purchase Agreement, as well as all costs incurred (if any) by the developer to recover possession as at the date of the annulment. In addition, it will also forfeit 20% of the purchase price from instalments (excluding interest) previously paid.
Sale and Rental of EC Units
Is EC considered private after 5 years?
In a way, an EC can be considered a partial private property upon meeting its 5-year Minimum Occupation Period (MOP). This is because you can only sell to Singapore Citizens (SC) and Singapore Permanent Residents (SPR). It will only be fully privatised after 10 years when it can be sold to anyone, including foreigners.
When can I sell my EC unit?
You can sell your EC unit in the open market to Singapore Citizens (SC) and Singapore Permanent Residents (SPR) after the 5-year Minimum Occupation Period (MOP) which starts from the date of the Temporary Occupation Permit (TOP). But after 10 years when it is fully privatised, it can be sold to anyone, including foreigners.
Can I rent out my EC unit before MOP?
You cannot rent out your EC before the 5-year Minimum Occupation Period (MOP), but you can rent out rooms during this period.
Can I rent out my resale EC?
Yes, it can be rented out as a resale EC is considered a private property.
Can I decouple my EC and purchase a private property?
Yes, you can decouple your EC and purchase a private property, but only after you have fulfilled your 5-year Minimum Occupation Period (MOP) when it becomes private.
Related Market Information And Guide:
- Understanding Singapore Property Policies & Financing Options.
- Understanding Singapore Stamp Duties.
- Understanding Property Agent Commission.
- Rules on Using CPF Monies for Property Financing.
- Singapore Property Investment – 7 Key Factors.