{"id":11784,"date":"2022-08-07T08:12:00","date_gmt":"2022-08-07T00:12:00","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=11784"},"modified":"2023-05-26T11:46:00","modified_gmt":"2023-05-26T03:46:00","slug":"singaporeans-buy-executive-condominiums","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/singaporeans-buy-executive-condominiums\/","title":{"rendered":"Why Singaporeans still love buying executive condominiums"},"content":{"rendered":"
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In July 2017, <\/span>Hundred Palms Residences<\/span><\/a> made history by becoming the most oversubscribed executive condominium. Over 2,700 applications were made<\/a> for 531 units, causing the whole development to be sold out in just seven hours. <\/span><\/p>\r\n\r\n\r\n\r\n

Here\u2019s why executive condominiums<\/a> keep topping the demand list for Singaporeans:<\/span><\/p>\r\n\r\n\r\n\r\n

1. Executive condominiums are still the best value buys<\/strong><\/h2>\r\n\r\n\r\n\r\n

ECs are a hybrid of public and private housing. This sort of \u201csandwich\u201d class properties have traditionally done well, such as the DBSS flats and maisonettes<\/a> of the past. The reason is simple: they\u2019re a chance to buy private property, while still getting government subsidies.<\/span><\/p>\r\n\r\n\r\n\r\n

Also, ECs often feature the same range of a facilities offered by private condominiums, but at a fraction of the cost.<\/span><\/p>\r\n\r\n\r\n\r\n

Consider this: a typical 5-room HDB flat can costs between S$500,000 and S$800,000 (or even up to S$877,000, as we’ve seen for a 5-room flat at an August 2022 BTO project in Ang Mo Kio<\/a>). On the other hand, mass-market suburban condos can easily hit the S$1.3 million mark.<\/span><\/p>\r\n\r\n\r\n\r\n

Now HDB flat buyers have an income ceiling of S$14,000 per month. Consider a family that makes a little more than that, say S$16,000 a month (the income ceiling for new ECs<\/a>). They get to choose between an EC and a private condo.<\/span><\/p>\r\n\r\n\r\n

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\"Condo<\/figure><\/div>\r\n\r\n\r\n

If this family were to buy a S$1.3 million private condo, with a 25-year loan at around 4% interest per annum*, the monthly repayment would be S$5,146 per month.<\/span><\/p>\r\n\r\n\r\n\r\n

However, they can buy an EC <\/span>with comparable facilities<\/span><\/i>, at around S$1 million. After deducting the CPF housing grants of S$30,000, they\u2019re looking at a total purchase price of S$970,000.<\/span><\/p>\r\n\r\n\r\n\r\n

Using the same 25-year loan at 4% per annum, the family\u2019s monthly repayments are just S$3,840 per month. An extra S$1,300 savings a month can make a big difference, especially for newlyweds having their first child. <\/span><\/p>\r\n\r\n\r\n\r\n

And this comes without any loss of quality, as executive condominiums are full-suite condos built by private developers.<\/span><\/p>\r\n\r\n\r\n\r\n

*The maximum loan quantum<\/a> is 75% of the property value<\/span><\/i>.<\/p>\r\n