Executive condominiums (ECs) are hybrid housing that combine the best aspects of public and private ownership. ECs operate under HDB rules for 10 years before becoming privately-owned properties; furthermore, their occupancy restrictions only allow citizens or permanent residents with minimum occupancy periods set out for them.

Location

ECs are typically located in key districts, and offer many sandwich class citizens an economical living solution with significant appreciation potential once fully privatised in 10 years.

However, it should be remembered that Executive Condos (ECs) may not suit everyone. With specific restrictions and an initial minimum occupation period (MOP), and only available for purchase by Singaporeans or permanent residents – they also tend to be located further from MRT stations due to government subsidies providing housing nearer their outskirts.

If you’re considering purchasing an EC, begin by researching different loans and banks that provide competitive interest rates. When you find one that meets your criteria, fill out and submit an application to your developer who will review your application against its qualifications such as meeting income thresholds, not owning other properties both locally or abroad, or selling off previous ones within 30 months of submission.

Amenities

Kaki Bukit is easily accessible to other parts of the city through its MRT station and several bus lines that service it nearby, including Bedok North MRT Station nearby and SBS Transit’s buses 5, 15, 58, 59 and 87 plying along Avenue 1.

Shopping enthusiasts will be pleased to know there are plenty of grocery stores such as FairPrice and Sheng Siong within close proximity. Additionally, Bedok Reservoir Market and Food Centre provides access to an assortment of retail options.

Residents in this neighborhood can send their children to nearby schools such as Telok Kurau Primary School and Maha Bodhi School, as well as enroll them in enrichment programs at Innovative Tuition Centre or Cristofori Music School. Residents working nearby have easy access to Kaki Bukit Techpark 2, boasting flexible workspaces with floor to false ceiling heights of 4.6m for IT, e-commerce, distribution and servicing companies.

Financing

Buyers of new ECs have the option of taking out bank loans instead of HDB housing loans for financing purposes, with up to 75% maximum loan-to-value ratio loans being approved from banks – but must put down 25% with their own cash or CPF savings as the initial down payment.

Buyers need above-average incomes in order to afford an EC. In fact, the monthly household income ceiling for new ECs is $16,000 – higher than regular HDB Build-To-Order flats which have a limit of only $14,000.

As their name implies, Executive Condos provide an affordable middle ground between public housing and private condos. Constructed and sold by private property developers with government backing such as price subsidies or CPF grants for certain CPF grants, Executive Condos (ECs) have attracted much interest among Singaporeans from all classes – particularly sandwich class workers.

Appreciation

ECs are intended for those in the “sandwich class”, who exceed BTO income limits yet find private condos unaffordable. Constructed by private developers at subsidised prices, they offer facilities similar to private condos while remaining more affordable than their alternatives. After five to ten years have passed since completion, these ECs become viable options in the resale market and further add their appeal.

While ECs do not guarantee financial gains, some have shown significant returns upon resale. Of course, their profitability can depend on many factors including market timing; Parc Centros in Katong has outshone two nearby ECs with respect to price growth since opening for sale in 2001.

However, prospective resale buyers should keep in mind that ECs do not qualify as private properties right from the start; buyers must abide by HDB rules during their first decade of ownership in terms of meeting Minimum Occupancy Period requirements and restricting transactions to Singaporeans or Permanent Residents (PR). For those wanting the full benefits of private property ownership, condos might be better options.