Both private condos and executive condos (ECs) are gaining popularity in Singapore. They offer a similar range of attractive amenities, from swimming pools and gyms to BBQ pits and playgrounds. So, if both options seem so similar, what is the difference between an EC and a private condo?
It can be hard to tell the difference between an EC and a private condo at first glance. Beyond competitive pricing and prime locations around Singapore, there are subtle yet important characteristics that distinguish the two.
Read on to learn more about the differences between private condos and executive condos.
Definition of Private Condo vs. EC What is a Private Condo? A private condo, or condominium, is a type of housing where individuals own units within a larger development. These developments often feature shared amenities like swimming pools and gyms. While the majority of Singaporeans live in public housing, about 17.2%1 reside in private condominiums.
Unlike public housing, private condominiums offer a range of facilities and services managed by private entities. This can include 24/7 security, swimming pools, tennis courts, landscaped gardens, gyms, and clubhouses. Each condo development is responsible for its own upkeep, providing residents with a sense of exclusivity and privacy.
What is an Executive Condo (EC)? An Executive Condominium (EC) is a type of public-private hybrid housing unique to Singapore. Introduced in 1995, ECs cater to upper-middle-income Singaporean households who desire private condo-like amenities but find fully private condominiums beyond their budget.
ECs are considered public housing for the first 10 years. During this period, they are subject to certain regulations, such as restrictions on ownership and resale. After 10 years, ECs become fully privatised, similar to private condos.
Similarities of Private Condos vs ECs Facilities As privately developed apartments (with the consideration of the 10-year MOP for ECs), both private condos and ECs share a similar range of facilities. The main difference between them usually lies in the scale and number of facilities offered, which often correlates with the size of the development.
Both ECs and private condos typically provide residents with amenities such as 24/7 security, swimming pools, tennis courts, gyms, and function rooms, creating a comfortable and convenient living environment.
Developers Unlike HDB BTO flats, which are sold directly by the Housing Development Board, both ECs and private condos are developed, marketed, and sold by private real estate developers. This means that the quality and design of these developments can vary significantly depending on the developer's reputation and the specific project.
Differences Between Private Condo vs EC While ECs and private condos share some similarities, there are also some key differences to consider. These differences can impact factors like pricing, eligibility, financing options, and investment potential. Let's break down some of these key distinctions between the two:
| Feature | Private Condo | Executive Condo (EC) |
|---|---|---|
| Pricing (Average price per square foot) |
S$1,953* | S$1,588* |
| Income Ceiling | No income ceiling | Monthly income must not exceed $16,000 |
| Minimum Occupancy Period (MOP | No MOP | 5-year MOP before selling in the resale market |
| Eligibility | Open to Singapore Citizens, Permanent Residents, and foreigners | New ECs: Singapore Citizens** only |
| Resale ECs (6-10 years): Singapore Citizens** and Permanent Residents | ||
| Resale ECs (after 10 years): No restrictions | ||
| Mortgage Options & Downpayment | Typically 25% downpayment (with at least 5% in cash and the remaining 20% from CPF or cash) | Typically 25% downpayment (with at least 5% in cash and the remaining 20% from CPF or cash) |
| Mortgage Servicing Ratio (MSR) applies, limiting monthly repayments to 30% of gross monthly income. | ||
| Locations & Accessibility | Can be located anywhere; accessibility varies | Usually in suburban areas; may have limited accessibility |
| Lease | Typically 99-year leasehold or freehold | 99-year leasehold |
| Launch Frequency (per year) | ~20 to 30 | ~3 to 5 |
| Floor Area | Can vary significantly | ~700 to 1,700 sqft |
| Investment Potential | Higher potential for capital appreciation | Moderate potential for appreciation |
* Prices taken from 2024 Report of Singapore Property Market^2
** Singaporeans purchasing an EC up to its tenth-year lease must meet HDB eligibility schemes, age, and property ownership requirements.
Decision-Making Between Private Condo vs Executive Condo
Choosing between an Executive Condo (EC) and a private condo depends on your individual needs, priorities, and long-term goals. Here's a guide to help you make an informed decision:
When Should I Choose an EC Over a Private Condo?
Executive condos are an attractive option if you desire condo-like facilities and amenities but have a more limited budget. They offer a balance of affordability and comfortable living.
ECs are typically located in suburban areas, further from the city centre. This contributes to their lower price point, usually ranging from S$800,000 to S$1.5 million. However, various government grants are available to eligible buyers, which can significantly reduce the overall cost. Learn how to set up a payment scheme for ECs.
If you prefer a quieter environment and prioritise personal use over immediate investment potential, an EC might be a suitable choice. Keep in mind that you'll need to fulfil the 5-year Minimum Occupancy Period (MOP) before selling.
When Should I Choose a Private Condo Over an EC?
Private condos often command a higher upfront home buying cost due to their prime locations in central areas and proximity to amenities and transportation hubs. This convenience can be a significant factor for some homeowners.
If you're a foreigner or expat looking to purchase a property in Singapore, a private condo is your only option, as you are not eligible for ECs or housing grants.
Private condos generally have higher investment potential. While EC prices tend to stabilise after the 10-year privatisation period, private condo prices often continue to appreciate. This difference in price per square foot (psf) between executive and private condos can be significant, sometimes exceeding 50% after the tenth year.
References
1 - Statistics on Resident Households | SingStat
2 - 2024 Year-End Review Of The Singapore Property Market
