Should I Buy Executive Condo in Katong Singapore?
First-time buyers of an executive condo (EC) face an enormous financial hurdle in purchasing one. ECs, unlike private condos, are government subsidized and have more stringent eligibility criteria; to purchase an EC you must meet one or more of the public schemes, Fiancee Scheme, Orphan Scheme or Joint Single Scheme and own no other properties both locally and overseas.
Location
Katong is an affluent neighbourhood featuring many luxurious residences among traditional Peranakan and Eurasian shophouses, making for an upscale living environment. Food lovers will also appreciate this area with numerous hawkers and restaurants available throughout. Families with children will also appreciate its prime location: Tao Nan School and Tanjong Katong Girls’ School are two reputable schools nearby that are ideal for them.
On Tuesday (March 14), the Urban Redevelopment Authority and Housing and Development Board offered for sale two residential land plots – one at Jalan Tembusu near Katong and an executive condominium site at Tampines Street 62 – expected to yield 1,540 residential units each.
Executive condominiums (ECs) are hybrid properties developed and sold by private developers with subsidies from Singapore government, yet subsidised by them. Their introduction was intended to meet the needs of people who had passed the public housing income ceiling but could not afford private homes at affordable prices. Executive condos offer features like pools, gyms and BBQ pits at far lower costs compared to their private equivalents.
Amenities
Executive condominiums (ECs) are increasingly sought-after among young couples and upgraders, due to their affordable price tags. First introduced in the 90s, ECs offer hybrid public/private housing that boast many of the same amenities found in luxury condos – like pools and gyms – yet come with minimum occupancy periods and other restrictions; for example, Singaporeans who earn at least $16,000 monthly and do not own other properties can buy an EC.
Contrary to BTO and resale flats, EC buyers must satisfy a five year minimum occupancy period (MOP), meaning their units can only be sold to local residents (Singaporeans and permanent residents) during this time. After five years have passed they will become fully privatised so any buyer willing to pay ABSD can purchase one; an attractive prospect for investors looking for opportunities. For starters consider searching resale ECs that are close to reaching their MOP mark as this will provide access to investment opportunities – get ready! To begin exploring resale ECs which will soon meet this criterion!
Eligibility
ECs (Extended Condominiums) provide an intermediary option between HDB flats and private condos, often popular among Singaporeans earning above the income threshold for HDB but who cannot afford private condominiums. Offering similar facilities to full-fledged condos but generally at more reasonable costs with CPF housing grants attached.
However, you cannot use an HDB loan to buy an EC – instead obtaining a private bank loan requires greater upfront payments and higher income requirements to qualify.
Noteworthy is the fact that ECs are considered HDB properties for their first 10 years of operation, thus adhering to all relevant rules and regulations related to HDB properties – such as Minimum Occupancy Period five years post TOP, as well as being sold to only Singapore citizens or permanent residents.
Financing
Purchase of a condo requires many considerations, including financing options. Buyers should check their loan eligibility and understand how the buying process works in order to prevent unexpected costs. Capital outlay and construction timeline should also be factored into financial plans when purchasing their dream condo.
Tenet EC promises to pique buyer interest due to its central region location near amenities like East Coast Park. Plus, Qingjian Realty boasts extensive expertise in both EC and private condominium sectors – an attractive combination for prospective buyers!
ECs offer the best of both worlds – private property ownership with affordable pricing – unlike HDB flats which have 99-year leaseholds. Buyers must however be mindful of any restrictions such as minimum occupation periods or restrictions against selling/renting to foreigners.