EC Eligibility Conditions: Am I Eligible To Buy EC

You are not able to buy an Executive Condominium (EC) during a developer’s new launch. Why? You do not meet some of the EC eligibility conditions which include your citizenship, age and household income, property ownership among other things.

New Launch EC: Ineligibility Conditions

Citizenship:

You or your spouse/significant other are not Singaporeans as at least the first applicant must be a Singapore Citizen (SC). Singles buying under the Joint Singles Scheme must be Singaporeans too.

Age:

You or your spouse/significant other are not at least 21 years old and above. If you want to buy under the Joint Singles Scheme, all the singles applicants must be at least 35 years old and above.

Income Ceiling:

You earn more than S$16,000 a month as a household.

Interest In Other Residential Property:

1. You or your spouse/significant other own local or overseas private residential property.

2. You or your spouse/significant other have disposed of private property within the last thirty months.

Subsidised Flat Ownership:

1. You have previously purchased two subsidised housing units in Singapore. This means you have used up your 2 privileges.

2. Your HDB flat interest is unable to be disposed of within 6 months of completing the EC purchase ( this could be due to co-ownership of the flat with your parent).

3. Neither the Official Assignee (OA) nor private trustee is willing to consent to your application as you are an undischarged bankrupt.

4. The application process requires a 1-year waiting period since you have previously booked a flat and cancelled it.

5. A 5-year waiting period applies to you if you previously bought an EC but terminated the Sale and Purchase Agreement.

In the absence of newly launched EC eligibility, couples and singles frequently consider a private condominium. A resale EC after its Minimum Occupation Period (MOP) may also be an option. ECs become private after they pass their 10th year (which is when foreigners are eligible).

Resale EC After 5-years MOP: Eligibility Conditions

Age:

1. Both you and your spouse/significant other are Singaporeans or Singapore Permanent Residents. You must both be 21 years or older.

2. Singles must be Singaporeans or PRs and at least 21 years old if buying as a single.

Household Income

Household income is not capped, but income is calculated based on Total Debt Servicing Ratio (TDSR) of 55%. This means you cannot use more than 55% of your income for property purchase.

Other Interests

In the case of resale ECs, you are allowed to own other private residential properties. Singaporeans with HDB flats that have completed MOP can buy a resale EC without disposing of their HDB flat. Take note that PRs must sell off their HDB flats within six months of buying a EC. However, if the PR sells their HDB flats before purchasing an EC, they do not have to incur Additional Buyer’s Stamp Duty (ABSD).

CPF Grant

With a resale EC, you will not qualify for CPF housing grants.

Loan

In order to get a housing loan, you must apply via a bank, subject to approval.

Additional Buyer’s Stamp Duty (ABSD)

Having more than one property in Singapore will result in Additional Buyer’s Stamp Duty (ABSD). ECs also have no MOP after five years.

Prices Of ECs After Five-Years MOP:

After an EC’s 5-years MOP, its per-square-foot value surge and volume of transactions are high.

credit:99co

Arc At Tampines, Belysa, Riverparc Residence and The Canopy and – all obtained their TOP in 2014 and mostly achieved their 5-years MOP in 2019. According to their trend chart, average psf prices have increased between 8.61% and 21.35% in the past three years since their MOPs.

It shouldn’t surprise you when newly MOPed ECs exhibit a similar trend. A look at the following graph shows the profitable median price gain of the exec condos when each EC has met their MOP. It’s a double-digit appreciation.

credit:ura

Privatization Of ECs After 10 Years: EC Eligibility Conditions & Their Profitable Gains

Foreigners (non-Singaporeans/PRs) can buy resale ECs after 10 years when they are privatised. Although no development is slated to be privatised this year, there are several scheduled for 2024 and 2025.

Singaporeans and PRs can consider buying a resale EC after it MOPs in 5 years and before it gets privatised on the 10th year. This is just so that after the development becomes privatised in 2-3 years, you can sell them to a wider market after that.

As well as domestic buyers, foreign buyers may be interested too.

credit:99co

After 10 years, most privatised ECs exhibited substantial price appreciation per square foot and volume. A double-digit appreciation in average psf prices has been seen at the ECs below, such as The Esparis in Pasir Ris (274 apartments)(TOP in 2005, privatised 2016), The Quintet in Choa Chu Kang (459 apartments)(TOP in 2006, privatised 2017), and La Casa in Woodlands (444 apartments)(TOP 2008, privatised 2019).

These 3 Exec Condos, in the last 3 to 6 years after they privatized, have achieved double digit growth of 13.71% to 17.93%.

Summary:

Remember The 3 Unique Life-Cycle Phases For Executive Condominium:

• 1. Newly Launched EC
• 2. After 5-years MOP
• 3. Privatization Of EC: After 10-years MOP

If you are keen to explore EC, you may look at the exisitng EC North Gaia in Yishun. Alternatively, you may wait for the next immediate upcoming EC launch, Copen Grand located at Tengah Garden Walk. This is located in the west and is sure to generate high interest as the last EC, Westwood Residences, was launched in 2015. Following Copen Grand (estimated to launch in October 2022), look out for Tampines St 62 EC (Tenet), Bukit Batok Ave 8 EC by Qingjian and Bukit Batok Ave 5 EC (tender to close on 13 September 2022).

Any enquiries, please call our hotline: +65 61002500 | Return to HOME

source:https://www.99.co/singapore/insider/ecs-nearing-5-year-mop-or-10-year-privatisation-eligibility-price-and-should-you-buy/