In the modern world, where the ever-changing technological landscape demands constant innovation and responsiveness, owning a home has become one of the most burdensome things that you can do.
As much as we love our homes, they usually come with a lot of responsibilities: from paying mortgages to taking care of maintenance and repairs, to dealing with strata fees, restrictive covenants and much more.
For some people, these burdens are just too much to handle. That’s why there is an uptick in recent interest in executive condominiums (commonly referred as ECs). What are they? Let’s take a look at this budding segment of the real estate market.
What is an Executive Condo in Singapore?
An executive condominium (EC) is a type of residential property that is primarily used by high-end executives and upper-middle class individuals.
EC is a public-private housing hybrid catered for middle-income Singaporeans who don’t qualify for an HDB flat due to the income ceiling cap, but still consider private condominiums too expensive.
These properties are typically developed in Singapore, Hong Kong, and Kuala Lumpur. ECs provide the luxury of living in a posh residential environment with only minimal responsibilities. The properties come with security staff, concierge service, and other amenities.
The idea behind ECs was initially conceived by British architect Ian Simpson who pioneered the concept back in the 1960’s. England’s government used these areas as housing for people working at academic institutions as well as members of Parliament.
Since then, they have spread to East Asian countries like Singapore, Hong Kong, and Malaysia which were hit hard during the financial crisis. The demand for these types of condos has always been high due to their convenience and relatively low ownership costs.
Why people buy Executive Condo in Singapore?
Executive Condo in Singapore is a form of property investment typically offered by developers for the upper middle class and high net worth individuals. A big reason for the robust demand lies in their affordability, being much cheaper than private condos.
EC prices are cheaper than private condos, but the exact amount depends on the project. They can be anywhere from 25% to 30% cheaper.
ECs offer a great potential for appreciation because they are sold like private properties, even though they are bought as subsidized units with grants.
And after privatization, there will be an even larger pool of potential buyers to tap into. Executive Condos can also be rented out like any other private condo.
Executive Condo usually comes in the form of apartments, sometimes accompanied by a private lift and amenities, such as a swimming pool or gym. As executive condos are usually built with a good view, with units having a different price based on their location, they are often priced much higher than other properties.
Executive condos offer tenants the same luxury of living near these shopping centres without actually having to live in them.
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Types of Executive Condominium in Singapore
With the growing popularity of ECs, it’s important to know what they are. And, with that in mind, there are two types of ECs:
1) Service Executive Condominium (SEC)
2) Owner-Occupier Executive Condominium (OEC)
First off, service executive condominiums offer a wide range of services such as housekeeping, concierge services and management for their residents. On the other hand, owner-occupiers have exclusive rights to the condominium unit. This means that the owner has the right to all units inside the building – including those under construction and not yet ready for market sale.
These two types of ECs are often offered in Singapore by foreign investment companies. If you’re interested in investing in one of these condos, be sure to do your research beforehand as these investments can be riskier than others. Here’s a short list of things you should consider when buying an executive condo:
* The location
* The building quality
* The amenities offered
* The price point
Advantages of buying an executive condo in Singapore
First and foremost, the best aspect of an executive condominium is its convenience. You don’t have to worry about finding a place or navigating the formalities associated with buying a house. In fact, when you buy a unit in an EC, you are getting a fully furnished home that comes with features such as infinity pools and state-of-the-art security systems.
This means that you don’t have to worry about worrying about your bills or maintaining your property.
In addition to being convenient and affordable, ECs are also flexible. You can combine two to four units into one project for creating additional living space or businesses on the ground floor level of your property. It also comes with separate control units for each floor, which allows you to manage electricity and utilities from any room in your home.
Furthermore, when buying an EC, it’s not just about getting a unit – you get access to all of its amenities as well! There is an exclusive clubhouse for residents where there are facilities like swimming pools and saunas that come at no extra cost. They also offer services like concierge services and 24/7 security patrols so you can stay safe inside your home at all times.
Finally, when purchasing an EC, it is usually more affordable than buying a house in Singapore because they offer shorter terms of financing (from 2-10 years) as opposed to 30 years for houses. It also usually costs less than owning a detached home
Disadvantages of buying an executive condo in Singapore
As with any market, there are disadvantages to purchasing an executive condo. For one, they come with a high price tag. That’s because they’re made of quality materials and are designed to not only look good but also perform well. They also come with many complex features that you may not be familiar with, such as air conditioning units, lifts and security systems.
These features will require more maintenance than a typical unit- something you can expect while living in a more affordable home. Other problems that people may face include restrictions on the use of their property as well as developer-induced delays in construction work.
Executive condominiums have become very popular recently for many reasons. One of the big ones is their cost effectiveness when compared to buying a standalone house or investing into real estate development with property prices still on the rise in Singapore after the global financial crisis in 2008 which led to many successful real estate transactions.
An executive condominium is a type of residential housing designed for people who need privacy and space from their family members or other unrelated people who might be trespassing at their home due to lack of proper screening for access or privacy screening for security purposes.
It usually consists of multi-story buildings consisting of apartments and often shares common facilities like swimming pools, clubhouses, parking lots, etc., It is typically built by developers and sold exclusively through commercial real estate agencies; some units are rented out while others remain unoccupied most of the time.
How to Buy an Executive Condo in Singapore?
There are three key things you should know about executive condominiums when you’re looking to buy one. First, executive condominiums (ECs) are different from other types of properties because they are basically built to be more like hotels than homes. That means the amenities and facilities will be just as high-end as the buildings themselves.
Second, due to their design, ECs typically have smaller footprints than other properties in Singapore, so there is less space for people to park their cars or build additional structures on their property. Third, the units in these properties typically come with a lot of perks such as 24/7 concierge service and access to all kinds of facilities within the building.
Conclusion
The benefits of buying an executive condo in Singapore are many, but not all are equal. Whether you’re looking to invest in your financial future or just get away from the hustle and bustle of city life, it pays to think about what type of executive condo would suit your needs best.
