Differences between Executive Condominium (EC) and Housing Development Board Flats (HDB Flats)

Buying a home is one of the monumental milestones among couples. For first-time home buyers, there are many factors to take into consideration before signing on the dotted line. Knowing the differences between EC and HDB flats is a great start on your journey to getting a house! Here’s a guide to bring you through what you need to know before making a huge and significant decision. 

Executive Condominium
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The executive condominium (EC) is a type of public housing in Singapore and is a hybrid of private and public housing. Essentially, an EC is a subsidized private condominium. Just like private condominiums, ECs are built and sold by private developers at a price lower than private homes as the land prices are subsidized by the Government. EC resembles private condominiums; they come with facilities such as a pool, gym, barbeque pit etc. They cater to Singaporeans whose families could afford more than an HDB flat but find private property out of their reach. 
 
However, it is important to note that there is a Minimum Occupancy Period (MOP) of 5 years and during which, the EC cannot be sold or rented out whole. The EC can only be sold to Singaporeans or Singaporean Permanent Residents (PRs) after 5 years. Since they are subsidized by the government, EC can only become a private property after 10 years from development completion to which they can be sold to foreigners.
 
What are the basic eligibility conditions?
  • Buyers' average gross monthly household income must not exceed S$14,000
  • You will need to meet one of the eligibility schemes:
    • Public Scheme
    • Fiancé/Fiancée Scheme
    • Orphans Scheme
    • Joint Singles Scheme
  • At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident
  • At least 21 years old or 35 years old, if applying under the Joint Singles Scheme
  • Buyers’ do not own other property overseas or locally, or have not disposed of any within the last 30 months
  • Buyers’ have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far
Housing Development Board Flats (HDB Flats)

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HDB is the most common type of housing in Singapore. It is built by the Government Housing Development Board and is a subsidized public housing. Up to 85% of Singaporeans live in HDB flats; the Government also stipulates that every floor embodies a good racial mix in an effort to enhance racial harmony in Singapore. 

For the convenience and to meet the needs of residents, the Government has been building MRT stations, shopping malls, community and leisure hubs, hospitals and schools around the neighbourhoods. The network of closed-circuit television has been expanding significantly under HDB flats to ramp up surveillance to ensure the safety and security of residents.    
 
HDB flats are classified into two categories: Built-to-Order (BTO) and Resale, also known as second-hand HDB. BTO is a HDB flat allocation system that offers flexibility in timing and location for home-buyers. Construction of BTO flats will begin only if 65-70% of the apartments in the flat have been booked, which would otherwise be aborted if the requirement is not met. A waiting time of three to four years is expected from the date the construction begins. Similar to EC, home-owners must fulfil a Minimum Occupancy Period (MOP) of 5 years for BTO flats before resale transaction can take place. 
 
What are the basic eligibility conditions to buy a HDB flat?
  • Buyers' average gross monthly household income must be at least S$6,000 or S$12,000, depending on the project and location
  • You will need to meet one of the eligibility schemes:
    • Public Scheme
    • Fiancé/Fiancée Scheme
    • Orphans Scheme
  • Applicants must be at least 21 years old, or 35 years old for Single Singapore Citizen applicants buying resale flat 
  • At least 1 Singapore Citizen applicant; or, at least 1 other Singapore Citizen or Singapore Permanent Resident
  • Buyers’ do not own other property overseas or locally, or have not disposed of any within the last 30 months
  • Buyers’ have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far

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HDB flats have a significant price advantage over Executive Condominiums and are the preferred choice for many young couples. There are also cases where couples upgrade from HDB to EC, depending on a couples’ financial situation and planning. A property is a hefty investment and ‘asset’ to own, proper financing and other related advices from real estate professionals are highly encouraged before one becomes an official home-owner. 

Should you require professional consultation, please do not hesitate to contact us at +65 6438 3919 or email us at enquiry.sg@centamail.com
 

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