The current property market in Singapore has become extremely hot, with property prices reaching all-time highs. In fact, HDB flat resale prices have been increasing for 23 consecutive months. Moreover, the Pasir Ris estate has recently witnessed the sale of its first million-dollar flat.
Prices of HDB Executive Condominiums have been on the rise in recent years. However, resale prices have not kept pace with the prices of newly built ECs. HDB prices are based on median house prices, while private condo prices take into account new launches as well as resale prices.
Although it is difficult to predict the exact price of an HDB executive condominium, median listing prices are generally around the same. However, it is important to keep in mind that there are outliers, which positively or negatively affect the average. The median for HDB flats is roughly seven to fourteen percent lower than the average listing price.
HDB flats are cheaper than ECs, which is one reason why many young couples prefer them. But if you are considering upgrading from HDB to an EC, it is important to plan carefully and understand your financial situation. This is because the upgrade is a more substantial leap than from HDB to private. You may want to consider upgrading your property during your mid-thirties or early forties, as you can stretch your next loan tenure to that age. It is also advisable to consult with a real estate professional if you are unsure about the steps involved.
If you are considering purchasing an executive condominium in Singapore, you should be aware of the waiting time. Most of these apartments are government-subsidised, and you should be aware of the requirements for buying them. The main criteria are: gross monthly income below $14,000, housing status, and citizenship. Generally, the waiting time from ballot to getting the keys to your new EC is around four to five years.
After the application process ends, you will receive a letter from the developer that will notify you of your approval. This letter will contain details on how to proceed with the process. After you have received the letter, you must sign the Sales and Purchase Agreement and make the required payment. This can be done with your CPF monies or with cash. You can pay the remaining 75% of the EC cost with cash or a bank loan.
As mentioned above, the government is taking measures to cool the housing market, which may include raising the interest floor. These measures are meant to control the escalation of prices in the HDB resale market. It may also introduce a waiting period for resale HDB units.
If you’re considering investing in an HDB Executive Condominium, you can save on the cost of property development. This property development is government-subsidised and is ideal for first-time buyers with gross monthly incomes of $14,000 or less. There are certain requirements that must be met to be eligible for a government-subsidised property.
The HDB has launched a tender for the executive condominium site in Bukit Batok West Avenue 5, which will yield up to 495 residential units. The site is approximately 16,623.7 square metres and has a 99-year lease period. It is estimated that ten developers may bid for the site.
To be eligible for an EC, you must have a Singapore citizen or a permanent resident. You must also have at least one other Singapore resident living in your family nucleus. In addition, you must not own another property, a house or flat.