The concept of executive condominiums or ECs was introduced in the city-state of Singapore in the year 1994 by the government of the city. The move was made in order to accommodate the growing aspirations among the general public of the city to live and reside in private homes of their own. The growing number of executive condominium developments in the following decade has helped a majority of the population in the city to own a home of their own for their family. However, a significant drop in property prices in the early 2000s led to the government stopping the development of these executive condominiums.

Now, almost a decade later, executive condominiums are still being developed in the city, albeit at a much smaller scale. The residential segment of the real estate industry of Singapore is now dominated mostly by private condominium developments that can be seen in various different areas across the city. Executive condominiums have a number of benefits to offer to buyers and investors. There are, however, a few drawbacks as well, and these must be considered carefully before making an investment on an executive condominium in the city.

Financing should be a major area of concern

The purchase of executive condominiums in the city can be financed by HDB Housing loans, which require only a meager 5 percent of the total amount to be paid upfront as down-payment. Hence, buyers would have to pay at least 20 percent of the total price of the EC units upfront. The financing can be executed through the help of private housing loans. There is, however, some respite in the fact that executive condominium units in properties like the Signature at Yishun cost as much as 20-30 percent lesser than the average prices of private condominiums in the city. Moreover, owners of ECs are also eligible for the various CPF Housing grants, which would help them to save as much as S$10,000 to S$30,000.

ECs are covered by a number of rules and regulations

Executive condominium developments in Singapore are considerably similar to the many flats and apartments of the Housing & Development Board of Singapore. These ECs, similar to the HDB Flats and Apartments, are restricted by few regulations and rules similar to those of the HDB housing structures. The regulations that apply on executive condominium developments like the Signature at Yishun EC, however, only apply for a period of 10 years. After 10 years from the date of purchase, the property can be privatized and the owner would get to enjoy the benefits equivalent to those enjoyed by owners of private condominium units.

Benefits similar to private condominiums

One of the very best aspects of executive condominiums in the city is that the owners and residents of this type of housing structure is that they get to enjoy similar benefits like private condominiums. Features like swimming pools, parking areas, security surveillances, gymnasiums, etc. are also common amenities offered with executive condominiums. Hence, with ECs, people in Singapore can live a fine and luxurious life, albeit at a much lesser cost than private condominiums.

Author's Bio: 

With an experience of more than a decade, Maryann Wilson has been working with executive condominiums like the Signature at Yishun and have been helping investors with their investments on ECs like the Signature at Yishun EC.