Singapore Executive Condo Eligibility Requirements
In order to purchase an Executive Condominium (EC) such as Lumina Grand, buyers must fulfill several requirements, including meeting minimum occupation period and eligibility conditions which are more lenient than HDB flats but more stringent than private condos.
ECs are hybrid housing that blend the sleek features of condos with ownership restrictions of HDB flats. Sold by property developers, ECs provide housing solutions suitable for families with mid-incomes.
Eligibility conditions
ECs are an innovative housing type that blends the streamlined features of private condos with ownership restrictions of HDB flats. As they’re also subsidised by the government, their prices are typically much lower than private properties. They’re restricted to Singapore citizens until reaching their minimum occupancy period (MOP), at which point they may be sold open market or even privatized after 10 years and sold to foreign buyers as well.
To qualify to purchase an Executive Condominium (EC), applicants must be 21 or 35 years old (depending on whether they apply through the Joint Singles Scheme), citizens of Singapore or Permanent Residents with at least one other citizen or PR in their family unit, not own or dispose of other properties, and total monthly household income must fall below $16,000 per month. Applicants will also need to fulfill any MOP obligations from previous EC/HDB resale flat purchases before purchasing another one within 30 months.
CPF Housing Grant
The CPF Housing Grant is a government subsidy designed to assist first-time condominium buyers afford an executive condominium from developers. However, to qualify you must meet a number of conditions; firstly no prior purchases from HDB or DBSS and secondly selling an existing flat within six months as well as your family not benefitting from any other form of housing subsidy before.
The main applicant must be at least 21 years old and reside in Singapore; essential occupiers can either be citizens or permanent residents (SPRs), with an annual gross household income not exceeding $16,000; single applicants looking to buy an EC must apply together and must be over 35.
Additionally, an EC must remain occupied for at least five years before selling or renting it out; regardless of these restrictions, however, the asset offers high appreciation potential once privatised after 10 years.
Resale levy
Many Singapore property buyers who wish to purchase new properties can be confused as to whether or not the resale levy must be paid, particularly when considering buying an executive condo. It’s essential that this factor be taken into consideration prior to making any final decisions on purchasing real estate here.
The Resale Levy (RL) is an amount you must pay when selling your first subsidised HDB flat or EC. It serves to maintain fair allocation of housing subsidies while simultaneously restricting benefits enjoyed by second-timers.
ECs attract two main groups of home buyers: first-timers and Permanent Residents who don’t qualify for BTO housing grants. These buyers face stricter MOP restrictions compared to private condominiums; furthermore they must form a family nucleus comprising both Singapore Citizens or Permanent Residents before purchasing an EC resale unit; however singles or PRs who are on their way towards citizenship or expecting can still purchase such properties and apply for grants such as the Citizen Top-Up Grant should they decide to do so!
Minimum occupancy period
Buying an executive condominium (EC) in Singapore entails certain conditions that should be taken into consideration, including minimum occupancy period (MOP) and resale levy requirements, eligibility requirements (being either a Singapore citizen or permanent resident and having formed at least one family nucleus with another person) and not owning or disposing of other private residential properties within 30 months prior to making your application for an EC.
ECs in Singapore provide an alternative form of housing with both public and private amenities, catering to households who exceed the income ceiling for HDB flats while being unable to afford private properties. Unlike private condominiums, however, ECs are not open to foreigners and possess specific ownership and pricing restrictions.
Even with these restrictions, ECs remain attractive homebuying options due to their affordability and high appreciation potential. Furthermore, ECs require lower cash downpayment than private condos making financing much simpler.