Can I buy EC After Selling Private Property?

Can I Buy EC After Selling Private Property

Purchasing a property is a significant milestone in anyone’s life, and it often involves careful planning and consideration of various factors. In the realm of real estate, three popular housing options in Singapore are Executive Condominiums (ECs) and private condos and HDB. 

Many individuals who are owners of private property might wonder if they are eligible to buy an EC after selling their private property. In this article, we will explore the regulations and conditions surrounding this question.

altura singapore
Altura is one of the most popular EC launches of 2023

What are Executive Condominiums (ECs)?

Before delving deeper into the topic, it is important to first understand what an EC is.

ECs are a type of public-private hybrid housing in Singapore that was introduced 1994 to cater to the housing needs of the “sandwich class” – households that exceed the income ceiling for public housing (HDB flats) but are not financially prepared to purchase private condominiums.

ECs are developed and sold by private developers but governed by the Housing and Development Board (HDB). They offer a middle ground between public housing (HDB flats) and private condominiums. ECs come with several restrictions imposed by HDB during the initial period after completion, making them more affordable than private condominiums.

Who can buy EC?

During the launch of an EC, several restrictions are imposed by HDB in order to achieve certain policy objectives and ensure a fair and sustainable housing market. 

For example, ECs were initially introduced to cater to the housing needs of the “sandwich class” By setting strict eligibility criteria, the government ensures that ECs are targeted at this specific group of middle-income Singaporeans.

Other reasons for the restrictions are to avoid property speculation that can drive up housing prices and create volatility in the market, as well as to balance housing demand by controlling the release of EC units into the market. Limiting the sale of EC units to Singaporean citizens and Permanent Residents during the initial period prevents excessive demand from foreign buyers, allowing eligible locals a fair chance to secure a unit.

It’s worth noting that the Singaporean government regularly reviews and adjusts housing policies based on the evolving needs of its citizens and the state of the property market. These strict eligibility criteria are part of the overall strategy to maintain a balanced and stable housing ecosystem that caters to the diverse housing needs of Singaporeans while fostering a sense of community and homeownership.

Related article: Can PR or singles buy EC?

Eligibility to buy EC

1. Only Singaporean citizens and Singapore Permanent Residents (PRs) are eligible to purchase an EC. Foreigners are not allowed to buy EC units during the initial launch period but they will have the opportunity to do so in the open market 10 years after the project TOPs. 

2. You must form a valid family nucleus. A family nucleus typically includes the following:

  • A married couple (including widowed or divorced individuals).
  • Fiancé and fiancée (as long as they register their marriage before taking possession of the EC).
  • Parents and children (if the child is unmarried).

3. The maximum household income ceiling that applicants must meet to be eligible for EC ownership is set at $16,000 per month (updated as of 2023).

4. The applicant and any of the listed essential family members applying for the EC must not own any other property locally or overseas, and have not disposed of any within the last 30 months.

Can I buy EC After Selling Private Property?

Yes, you can buy an EC after selling your private property or condo, but this is subject to certain conditions and is dependent on whether you are keen to purchase a new EC or a resale EC. 

You may apply to purchase a new launch EC if you have disposed of your private property, you may apply for an EC unit after 30 months from the date of disposal of your existing private property.

However, this is not applicable to resale ECs that have already passed their 5-year Minimum Occupation Period (MOP). The MOP refers to a period of time that EC and HDB property owners are required to physically occupy the property before they can rent or sell the entire flat. For ECs, the MOP is only applicable for the first batch of buyers. As such, you will be able to buy an EC anytime after you sell your private property. 

Can I buy EC if I own private property

If you, your spouse, or any family member to be listed in an EC application owns a private property in Singapore or overseas, you are not eligible to buy a new launch EC unit. 

However, you will be able to buy a resale EC if you already own a private property. Do note that if you do choose to buy a resale EC on top of your other private property, you will be subjected to the Additional Buyer Stamp Duty (ABSD), on top of the existing Buyer’s Stamp Duty (BSD) since the EC will be your second property.

The current ABSD rate for Singapore Citizens buying their second property is 20%. For Singapore PRs, this rate is 30%. For more information on the ABSD rates, read our guide to buying a second property in Singapore!

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