Tapping into EC market
Unlike Build-to-Order (BTO) flats, Executive Condominium (EC) are developed by private developers. However, there are certain EC eligibility criteria to fulfill in order to purchase an EC.
EC's development is kind of like a hybrid of public and private housing and it is gaining in popularity since the scheme was introduced in 1996 when private home prices were at a high. The purpose of EC is meant for Singaporean who are aspired to stay in a private condominium but cannot afford the price tag of a private condominium.
EC are always popular as it is similar to private condominium but with subsidies from the government. The price tag for EC is generally 15% to 20% lower than private condominium in the same vicinity. With government subsidies come criteria to fulfill to be eligible for EC. One of the criteria is to fulfill 5 years of Minimum Occupancy Period (MOP) before the EC can be sold in the open market to Singaporean or SPR and to the foreigners after 10 years. In another word, EC will achieve the same status as private condominium after 10 years and thus potential increase in the flat value.
For first-time buyer (Singaporean), EC is the logical choice for them especially for those who are not eligible for BTO flats and find the price point of private condominium financially too stressful for them.
All EC are 99 year leasehold properties and developers can only launch the EC 1.5 years after winning the tender.
Here are some reasons for HDB upgrader and first-time buyers to consider purchasing an EC :
- Low interest rate environment.
- Attractive launch price of EC by developers (around 15% - 20% lower than private condominium).
- CPF Housing Grant of up to S$30,000.
- Upgrade to a higher standard of living while you are young with lesser commitments.
- Greater capital appreciation for EC which can be unlock during your golden years.
Beside the above advantages, here are some characteristics when purchasing an EC :
- Additional Buyer's Stamp Duty (ABSD) is Not Applicable.
- Seller's Stamp Duty (SSD) is not applicable due to MOP.
- Not allow to purchase any residential property within MOP.
- Deferred Payment Scheme is available.
Is Parc Canberra EC a value buy and should you buy ?
It always make economic sense to buy an EC directly from developers as the entry price is almost guarantee to be 20% lower than new private condominium of comparable location and quality.
With all the upcoming integrated developments in the North like Bukit Canberra, Canberra Plaza, and Woodlands Health Campus, Parc Canberra EC will benefit from all the new amenities especially Canberra MRT Station (NS12) which is just around 400 meter away from Parc Canberra EC.
To get a more details understanding on Parc Canberra EC, please contact us to get your personal one to one consultation with our consultant.