Article

Why Do Most People Find It Difficult To Buy An EC In Singapore?

Written by Maryann Wilson

Topic: Real EstatePublished December 1, 2015

Rating pending676 viewsSign in to rate

Purchasing an executive condominium can certainly prove to be a great idea as the unit will not only help a person to own a home, but also bring in profitable returns once the property is privatized. Moreover, executive condominiums, also known as ECs, are the only housing options available to the people of Singapore who do not make enough money to buy private condo units. ECs can only be purchased by citizens of Singapore who do not qualify for HDB flats and apartments due to their monthly income structures, but also cannot afford private properties in the city at the same time.

It is, however, not very easy to buy ECs in the city regardless of them being limited to only the citizens of the city. One of the most primary reasons behind this is that there have been so few EC developments in the past few years. Moreover, the list of criteria for making a person eligible for EC purchases also limits many people from purchasing one such unit. There have been multiple changes in the eligibility criteria in the past few years, and this may prevent a person from actually being permitted to buy one such unit in the city.

Listed below are a few of the eligibility criteria that a person must fulfill in order to be able to buy an EC in Singapore.

Buyers must be a part of a family nucleus that includes their parents, spouses, fiances and children. In case the applicant is divorcee or widow/widower, they must form their family nucleus with their children. For singles above the age of 35, the applicant must apply with another single in order to be eligible for a purchase. Applicants can also apply for dual-key units in case they form a family nucleus comprising of their parents and grandparents.

As of 2015, the average gross monthly income of the entire family must not be more than $14,000, which has been raised from the previous value of $12,000. For employed and salaried applicants, the gross monthly income will be determined by the pay-slips for the previous 3 months. Applicants can alternatively provide a certificate from their employer confirming their salary structure.
In case the applicant is self-employed, their gross monthly income would be determined by their latest IRAS NOA. For part-time employees, the gross monthly income is determined by the pay-slips for the previous 12 months or a certificate issued by their employer.

Previous owners of HDB properties or resale flats must fulfill the minimum occupancy period of 5 years before they apply for a new EC unit in projects like the Signature at Yishun. The Minimum Occupancy Period is 5 years from the date of possession, and must be fulfilled before the property can be privatized. In case the previous HDB property has been privatized and sold, applicants must wait for an additional period of 30 months from the date of sale before being eligible to apply for an EC unit.

There are a few other eligibility criteria that must be fulfilled by a person applying for EC units in properties like the Signature at Yishun EC, but the above mentioned ones are some of the most important ones.

Article author

About the Author

Having worked with several EC projects like the Signature at Yishun over the past decade, Maryann Wilson now acts as a consultant for people seeking to buy new EC units from upcoming properties like the Signature at Yishun EC.

Real Estate Bookkeeping for Multiple Properties: How Investors Can Simplify Financial Management

Metal Railing Fabrication Noida – Strong, Stylish & Customized Railing Solutions

Metal Facade Fabrication Company Noida – Innovative Metalwork for Distinctive Building Exteriors

Why Some Buildings Just Feel Safer—And What’s Behind It