What are Executive Condominiums
Executive Condominiums (EC) are strata-titled apartments with facilities comparable to private condominiums. They are a hybrid type of housing jointly brought to you by HDB and various private developers. New EC units are sold with initial eligibility and ownership restrictions similar to public housing and will be fully converted to private housing after 10 years.
Additional Housing Option
ECs cater to families who are beyond the $8,000 monthly income eligibility criterion for new Housing & Development Board (HDB) flats. They provide an additional option to meet the housing aspirations of families earning a gross combined salary of up to $14,000 a month.
Eligible first-timers who purchase new ECs can also apply for CPF housing grants of up to $30,000. Since 2007, the EC Housing Scheme has been further refined to better meet the needs of homebuyers with measures such as:
EC developers will set aside 70% of flat supply for first-timers during the first month of sale; 30% is set aside for second -timers to buy within the first month of sales and second-timers buying new ECs do not need to pay any resale levy, with the exception of EC land sales transacted on or after 9 Dec 2013.
Resale Levy ( for second timer buyers who currently own a HDB flat )
A resale levy is payable if you are buying an Executive Condominium (EC) from a developer whose land sale was launched on or after 9 Dec 2013, including land tenders that were not finalised or launched from January 2015 onwards.
These are some of the Executive condominiums that are affected by the revised policy for resale levy.
1) The Brownstone
2) The Vales
3) Sol Acres
4) Signature @ Yishun
5) The Criterion
6) Parc Life
7) The Wandervale
For unaffected Executive Condominiums, you may dial 84881168 to have a quick check upon registration here.
Second timer buyers, who have previously bought a flat from the HDB or taken a CPF Housing Grant, will have to pay a resale levy when they buy the next subsidised flat from the HDB. The resale levy is meant to reduce the subsidy on the second subsidised flat so as to maintain a fair allocation of public housing subsidies between first-timer buyers and second-timer buyers.
Amount Payable under the Revised Resale Levy Policy
*Applicable for buyers who have purchased a 2nd subsidised flat (EC) on/after 3 March 2006 and their 1st subsidised flat was sold after 3 March 2006.
Amount Payable under the Previous Resale Levy Policy
Applicable for buyers who have purchased a 2nd subsidised flat (EC) on/after 3 March 2006 and their 1st subsidised flat was sold before March 2006.
Below are applicable charges under the Previous Resale Levy Policy, i.e. based on resale price or 90% of market valuation, whichever is higher:
Resale Levy Payable by Single Grant Recipients
Regardless of any revised or previous resale levy policy, single citizens, who have purchased resale flats with the lower CPF Housing Grant for Singles, would need to pay only half the levy amount when they subsequently form a family and buy or take over the ownership of a second subsidised flat.
Making Payment for the Resale Levy
The resale levy payable is determined at the point of booking of the second subsidised flat (EC).
The payment of resale levy is regardless of the type of ownership (i.e. joint-tenancy or tenancy-in-common) and the share of interest in the flat.
If you are buying your second subsidised flat (EC), you can:
Pay the resale levy immediately at the point of resale, i.e. when selling your first subsidised flat or
Defer the payment until you buy another flat from HDB. If you come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged.
You can pay the Resale Levy with either/combination of the following:
with your sale proceeds or
The resale levy will be deducted from the sale proceeds when you sell your first subsidised flat in the secondary market. Any shortfall will have to be topped-up in cash.
Eligibility and Ownership Restrictions
Eligibility and ownership restrictions for owning an EC are governed by the HDB. Please check your eligibility here.
Source: Housing & Development Board