Eligibility to Buy Resale Executive Condo in Singapore

Aspiring to upgrade your living situation but finding private condominiums a tad too pricey? If you've got your eye on the appealing blend of affordability and condo-like living that Executive Condominiums (ECs) offer, you're not alone! Resale ECs, in particular, can be a fantastic option for those who want to enjoy condo facilities without the hefty price tag. But before you dive into property viewings, it's crucial to understand the eligibility criteria. This guide will walk you through everything you need to know about who can buy a resale EC in Singapore, empowering you to make informed decisions on your homeownership journey.

What is an Executive Condo?

Executive Condominiums (ECs) are a unique housing model in Singapore, designed as a public-private hybrid. Think of them as the perfect middle ground between HDB flats and private condos. They cater to the "sandwich class" – Singaporean families who desire the lifestyle of a private condo but may not be able to afford the full cost of one. ECs are targeted at those who earn too much to qualify for an HDB flat but find private condominiums out of reach.

ECs come with a Minimum Occupation Period (MOP) of 5 years, during which they cannot be sold or rented out entirely. After 10 years, they become fully privatised, essentially transforming into private condominiums with no restrictions on ownership or rental. 

New EC vs. Resale EC

Understanding the distinction between new and resale ECs is crucial for determining your eligibility. Here's a handy table summarising the key differences:

What Is The Eligibility To Buy A Resale EC?

To buy a resale Executive Condo, several eligibility criteria must be met:

Citizenship

• EC between 5-10 years old: Unlike new ECs, which require the main applicant to be a Singapore Citizen, resale ECs between 5-10 years can be purchased by both Singapore Citizens and Permanent Residents (PR).
• EC of more than 10 years: After 10 years, the EC is fully privatised and can be purchased by anyone, including SCs, SPRs, and foreigners, with no restrictions.

Family Nucleus

When it comes to buying a resale HDB flat, you typically need to form a family nucleus. This means you must be a married couple, a parent and child, or siblings applying under the Joint Singles Scheme. Singles who don't have a family nucleus can buy a resale HDB flat only if they are 35 years old or above.

However, resale ECs offer more flexibility in this regard. If the EC has fulfilled its Minimum Occupation Period (MOP) of 5 years, you can buy it without needing to form a family nucleus. This makes resale ECs a more accessible option for singles or individuals who don't meet HDB's family nucleus criteria.

Age

For resale HDB flats, singles must be at least 35 years old under the Singles Scheme. For resale ECs, the minimum age requirement is 21 years. Singles can purchase a resale EC starting at 21 years old, provided the EC has completed its 5-year MOP. This lower age threshold offers a significant advantage over resale HDB flats for younger buyers.

Income Ceiling

Similar to resale HDBs, there is no income ceiling for resale ECs. This makes them a viable option for higher-income earners who may not qualify for new ECs or HDB flats. 

Other Property Ownership

• For HDB Owners: Singapore Citizens (SCs) can keep their HDB flats if they have met the Minimum Occupation Period (MOP) when purchasing a resale EC. However, Singapore Permanent Residents (SPRs) must sell their HDB flats within six months, regardless of whether the MOP has been met.
• For Private Property Owners: There are no restrictions on owning private properties alongside a resale EC, but Additional Buyer’s Stamp Duty (ABSD) will apply based on the buyer’s ownership status and property count.

Can Singles Buy Resale EC?

Yes, singles can buy a resale EC. Unlike resale HDB flats, which require singles to wait until they are 35 years old under the Singles Scheme, resale ECs offer more flexibility. Singles as young as 21 years old can purchase a resale EC, provided it has completed its 5-year Minimum Occupation Period (MOP). This makes resale ECs an attractive option for younger individuals looking to invest in property without the constraints of forming a family nucleus.

Are Resale ECs Worth Buying?

Whether a resale EC is worth buying depends on your individual circumstances and financial goals. However, they generally offer several advantages:

• Affordability: Resale ECs are typically more affordable than comparable private condominiums.
• Better Facilities: ECs often have better facilities than older condominiums.
• Value Appreciation: As an EC nears the 10-year mark and becomes fully privatised, its value typically appreciates, making it a potentially good investment.

Is Resale EC The Right Fit For You?

Deciding whether a resale Executive Condominium (EC) is the right choice for you requires careful consideration of various factors, including your budget, eligibility, desired lifestyle, and long-term housing goals. 

To help you assess, here's a summary of the key differences between new ECs and resale ECs:

Beyond these factors, consider your priorities. Do you value affordability above all else? Are you comfortable with the restrictions that come with ECs during the initial years? Do you prefer a brand new property or are you happy with an established development?

If you're still unsure whether a resale EC aligns with your needs and aspirations, reach out to an experienced mortgage consultant in Singapore who can provide personalised guidance and help you navigate the financial aspects of buying a resale EC. At Mortgage Master, we'll help you understand the process, including breaking down the differences between ECs and condos, explore various financing options, and ultimately make an informed decision that suits your unique circumstances.

References

• HDB Official Website
• Investopedia
• CPF Official Website
• IRAS