A Guide to Buying a Property in Singapore: HDB, Condominium or Executive Condominium?
Are you planning to buy a property in Singapore? First-time buyers are often perplexed by the differences between Build-To-Order (BTO), Private Condominiums and Executive Condominiums (EC).
There are a few factors to consider: Advantages, disadvantages, and your income level. Here are the key differences you should know:
Build-to-Order (BTO Flats)
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New HDB flats, also known as Build-to-Order flats are designed to be responsive to housing demand and offers flexibility in location and timing. As public housings in Singapore are built by the Housing and Development Board (HDB), they cannot be sold to foreigners or companies.
There is an income ceiling for the purchase of government flats. Borrowers are not eligible if the combined monthly income exceeds the required limit. The income ceiling is as follows:
-2-room flats: $6,000 ($12,000 for elderly buyers, who are purchasing 2-room flexi-flats)
-3-room flats: Usually $6,000, but is sometimes capped at $12,000 for selected projects
-4-room or bigger: $12,000
For multi-generational (3G) flats, the income ceiling is 1.5 times higher (generally S$18,000).
• HDB flats have a variety of communal facilities such as coffee shops, markets, hawker centres, communal gardens and work-out corner for residents etc.
• You can get CPF Housing Grants for BTO flats.
• BTO flats may require more renovations, including installation of air conditioning and kitchen facilities. Compared with private condominiums and executive condominiums, the basic renovations fee for HDB flats may cost more.
Executive Condominium (EC)
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- ECs are equipped with private facilities such as swimming pool, gym and 24-hour security.
- ECs are a hybrid type of housing that fall between public and private housing. Just like a private condominium, ECs are built and managed by a private developer but come at a cheaper price, as the land cost is subsidized by the government.
- ECs will be converted from public to private housing after 10 years, and they can be sold to foreigners or companies.
- ECs have a higher income ceiling of S$14,000.
- You must use a bank loan for ECs.
- EC often has installed air conditioners, built-in kitchen cabinets, vanity tables, ovens, etc., so the renovation costs are less expensive.
Private Condominium
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- Private condominiums are built and managed by private developers.
- Private condominiums can be sold to foreigners and companies at will, there is no minimum occupation period required. Buyers can buy and start renting immediately.
- You must use a bank loan for private properties.
- Similar to ECs, private condominiums do not require extensive renovations.
- Property maintenance costs are higher as compared to BTO. Many private properties, such as the ECs, have a monthly maintenance fee of approximately $250.
We hope these key differences help you in making the best decision for your property purchase in 2019!
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