As the plum island country of Singapore becomes more and more economically progressive in the international arena, so does its growing number of countrymen who are in need of a quality abode to reside in, near its bustling financial and leisure centres. If you are one of these, do not fret; the meticulous Housing and Development Board offers various ways to avail your own place within the Asian tiger, including the much lauded Executive Condominium (ECs) scheme.
This scheme, introduced in 1997, specifically caters to the young Singaporean graduates and professionals who are capable of buying more than a typical HDB, but are still not ready to purchase a private property. Basically, it is a private condominium that is sold with a few restrictions, which in turn translates to competitive prices. However, these restrictions expire gradually until the unit reaches its tenth year mark.
Since ECs are also developed and eventually sold by private developers, its designs, facilities, and legal status are parallel to that of an entirely private condominium. It is sold with a strata title, albeit a 99-year leasehold rather than a freehold. ECs are even appointed with full condominium facilities, such as pools, a tennis court, clubhouse and a gym, for you to enjoy.
Also, if already eligible, you may be able to apply and purchase an EC of your own through the “housing grant”. You do not need to form a family nucleus to buy, as long as you’re above 21 years of age. Although, couple applicants could receive a $30,000 housing grant given that both are Singaporean citizens, while an equally generous $20,000 for a Singapore citizen and a PR (a foreign citizen who has acquired Permanent Residence status) can be granted.
A WISE INVESTMENT
ECs are assured wise investments, since the chances of value appraisal are much higher than subsidized HDBs, BTOs, and even HDBs for resale. Good examples are the Eastvale (located in Pasir Ris Drive 3) and Simei Green (located in Simei Street 4) condominium developments, which both finished construction in 1999.
When Eastvale was launched in 1996, it was sold at $415 psf (per square foot). Nonetheless, after more than 10 years, the value has significantly doubled, costing at $838 psf as of 2011. Likewise, for Simei Green, the price went up to a competitive $769 psf from a measly $335 psf back in 1997.
As PropNex Realty CEO Ismail Gafoor mentions on the company’s 2012 annual convention, ECs’ appreciation escalates swiftly over the years from its original purchase date.
The prices for ECs like the aforementioned are also unlikely to drop, and will greatly benefit those who opt to resell their respective ECs after the minimum occupation period (MOP) of five years. After this, you might opt to sell it to other eligible buyers within the ECs’ price range, typically between $600 to $800 psf, which is still advantageously higher than the other housing schemes. Additionally, when the EC goes onwards its 11th year, foreigners and corporate bodies also become eligible buyers, most likely bringing in huge profit.