Executive Condominium

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Executive Condominium, or EC, is a type of public housing in Singapore. First built in 1999, EC is a hybrid of public and private housing. They resemble private condominiums and are enclosed within a gated compound with security, amenities like swimming pools, clubhouses, playgrounds and so forth.

Singapore Republic in Southeast Asia

Singapore, officially the Republic of Singapore, is an island city-state in Southeast Asia. It lies one degree north of the equator, at the southern tip of the Malay Peninsula, with Indonesia's Riau Islands to the south and Peninsular Malaysia to the north. Singapore's territory consists of one main island along with 62 other islets. Since independence, extensive land reclamation has increased its total size by 23%. The country is known for its transition from a developing to a developed one in a single generation under the leadership of its founder Lee Kuan Yew.

EC are built and sold by private developers, but at a price lower than private homes because their land prices are subsidised by the Government. Additionally, buyers can take Central Provident Fund (CPF) grants to pay for an EC bought from a developer.

In Singapore, the Central Provident Fund (CPF) is a compulsory comprehensive savings plan for working Singaporeans and permanent residents primarily to fund their retirement, healthcare, and housing needs. The CPF is an employment based savings scheme with employers and employees contributing a mandated amount to the Fund.

As such, an EC is subject to certain regulations that apply to Housing and Development Board (HDB) flats. Buyers' monthly household income must not exceed $14,000, in order to qualify for an EC. This limit was raised from the previous $12,000 in August 2015. [1]

Housing and Development Board

The Housing & Development Board is the statutory board of the Ministry of National Development responsible for public housing in Singapore. It is generally credited with clearing the squatters and slums of the 1960s and resettling residents into low-cost state-built housing. Today, as many as 82% of Singaporeans live in public housing provided by the HDB.

For direct purchases from a developer, there is a minimum occupancy period of five years; during which the EC cannot be sold or rented out whole. After five years, the EC can only be sold to Singaporeans or Singaporean Permanent Residents (PRs). It can only be sold to foreigners after 10 years from development completion.

In December 2013, HDB announced that EC will now be subjected to the Resale Levy. This is a lumpsum payment made to HDB when you purchase a second subsidized home. However, this only applies to ECs whose land sales were launched on or after 9 December 2013.

See also

Public housing in Singapore

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References

  1. "Executive Condominium (EC)". Housing and Development Board.