Can Single PR buy resale executive condo ? – Yes and how

Single PR looking to purchase a resale EC

To start off, we like to say that we totally empathise with the challenges that you would have to overcome to purchase your first property in Singapore. The challenges are compounded when you are a PR, coupled with the fact that you are an unwebbed Singles purchasing properties in Singapore. 

Goal of this article

The goal of this article is to help Single PR confirm their eligibility in purchasing a resale EC and discuss in depth the consideration that a Single PR should have in mind when purchasing a resale EC. 

So, can Single PRs buy resale executive condo ? 

Yes, Single PRs are fully eligible to purchase a resale executive condo, aka resale EC. 

After the first owner of an EC fulfils its 5 year minimum occupation period, the EC’s status transits from that of a government subsidised housing to that of a private property. And private properties, similar to private condo developments are eligible for sale to both PRs and Singapore citizens. 

Housing options available for Single PRs

In fact, resale ECs are one of the 3 housing options available to Single PRs in Singapore. 

• Resale EC
• Private Condominium – both resale and new launch projects
• Cluster housing – landed property with shared compound

Having consulted numerous Single PRs on their first property purchase, we understand that finding an affordable housing option, with the most investment upside could be of priority. So that essentially rules out cluster housing and leaves us with the two most probable option of Resale EC and Private Condo. 

Housing options not available for Single PRs consideration

For the sake of completeness, these are housing options that are not eligible for Single PR purchase. 

New HDB Flats

Only eligible for PR purchase if you purchase with another Singapore Citizen under the Public Scheme, Fiance/Fiancee Scheme and Orphan Scheme. Essentially you cannot apply as a Single person but must apply under a family nucleus with a family member i.e parent, spouse, sibling who is a Singapore citizen.

Resale HDB Flats

Cannot apply as a Single PR, but can apply with another PR, where both of you have attained PR status for 3 years or more. The other PR joint applicant must be your fiance/fiancee, parent or spouse.

New Executive Condominiums (ECs)

Cannot apply as a Single PR, not even under EC joint Singles Scheme. Can only apply with another Singapore citizen under a family nucleus, similar to New HDB Flats. 

Landed Property

Single PRs generally cannot purchase landed properties unless they obtain approval from the Singapore Land Authority.

ABSD payable by Single PR 

An important point to note for Single PR purchasing your first property in Singapore is that you will have to incur a 5% additional buyer stamp duty on the purchase price of your property.

Comparing this with a typical Singapore citizen purchasing their first property, no ABSD is required.

This will set you back with an additional cost of 5% on your purchase price. Hence selecting the right property with the right price appreciation fundamentals is important in order make the property a worthwhile investment.

From a affordability standpoint as well, you will have to buffer for additional cash or cpf to cover the ABSD levied.

When is the best time for Single PR to buy resale EC ?

A common question that is often raised by savvy buyers is when is the best time to purchase a resale EC.

Assuming the objective is to ensure the best purchase price, with the widest unit selection.

The best time to purchase a resale EC would be to time it immediately after an EC achieves its minimum occupancy period.

Widest unit for selection

As a new EC achieves its 5 year MOP period, many EC owners will be eager to sell their property to rein in its capital gain.

This is the period where you will get to choose from the most number of units within the EC development.

You will be able to optimise for the best unit with the right floor level and facing, while paring the selling prices of competing units against each other.

Best chance for good entry price

For the uninitiated, seller and seller’s agent set the selling price of their resale ECs based on historical transacted price of similar units.

As EC has just achieved its MOP, there are none or few historical transactions for reference.

As prices build based on each transaction within the EC development, you would want to position yourself as one of the earlier purchasers, snagging a unit at the base of the price chain, before it peaks.

Quick Intro – Decoupling Expertise 

Before committing the next 5 mins to reading this article. It helps to know who’s behind the pen.

We are Decoupling Expertise, an investment focused real estate agency. We specialise in helping our readers research, shortlist and source for properties that serve the dual purpose of investment and home stay. 

Having noticed a lack of information in helping Singles purchase their first investment property. We set out to answer every Singles’ property related query via quality long form content and non obligatory Whatsapp Q&A. 

Drop us a whatsapp text if you need help getting started on your first-condo plan.

Factors to consider when buying resale ECs

Price disparity vs surrounding private condo 

ECs, started off as subsidised housing offered by HDB, and are launched at a 100 to 200 psf price discount compared to surrounding private condo.

From this perspective, new EC owners have enjoyed a healthy profit margin during sale. They may pass on some of this price discount to you.

So it will be helpful to track the price difference between the resale EC and comparable private condo in the vicinity, to verify if you are making a value purchase.

Distance to MRT

A point to note, ECs being government subsidised housing from the get-go, they are normally built further away from the MRT stations as compared to private condo developments. 

Hence, finding a resale EC development with decent proximity to a MRT station would be a major plus point for your own convenience and future resale value. 

In later sections, we will provide a shortlist of resale EC developments that are proximate to MRT station. 

Availability of 1 bedroom and 2 bedroom units within resale EC development

ECs are built with the primary intent of providing housing for families, hence not all resale EC developments are built with 1 or 2 bedroom units. 

If affordability is your primary concern and assuming you are looking for a 1 or 2 bedroom unit to live by yourself, then you will be looking to shortlist resale EC developments with 1 or 2 bedroom units. 

Similarly, we will provide a shortlist of resale EC developments with 1 or 2 bedroom units in sections that follow. 

Demand and profitability of private condo surrounding the resale EC

As a barometer for healthy buyer demand, it will be helpful to survey the profitability for comparable private condos surrounding the resale EC development. 

Generally, the private condos around the EC, form the benchmark price for the resale EC and healthy buyer demand for it will serve as a price catalyst for the EC that you are about to purchase. 

Affordability considerations for purchasing a resale EC 

Now let’s move into another top of mind consideration for all Singles purchasing property in Singapore. 

Let’s consider how much it takes to afford a resale EC in Singapore. 

Average price of resale EC 

The average price of a resale EC is as follow

• 1 Bedroom unit – $750,000 – $850,000
• 2 Bedroom unit – $1,000,000 – $1,200,000
• 3 Bedroom unit – $1,300,000 – $1,500,000

Paying for a resale EC in Singapore 

For the uninitiated, the typical funding structure for purchasing a resale private property or resale ec is as follows. 

Funding the purchase of the property 

• 5% cash – mandatory MAS requirement
• 20% cash or CPF 
• 75% loan – assuming your monthly income qualify you for the loan quantum
• Any shortfall in amount not covered by loan, to be covered by additional cash or CPF

Funding the transactional cost involved

• Additional Buyer stamp duty 
• Buyer stamp duty 
• Legal Fee
• Valuation fee

Assuming you were to go for a 2 bedroom unit priced at $1,100,000. You will be looking at the following financial resources to fund the purchase. 

From a salary perspective, you will be looking at a salary of at least $8,100 to qualify for a loan of $825,000.

Difference between Resale EC and Resale Private Condo

Potentially lower price point for resale EC 

For both a psf pricing and quantum, resale ECs then to be lower in price at the initial years after they achieve their MOP status.

The price gap will eventually narrow as the resale EC development matures, and as future buyers do not differentiate a resale EC from its comparable private condo counterpart.

Resale condos tend to occupy a better location than resale EC.

Resale ECs tend to be located further away from MRT stations as compared to its private condo counterpart.

Hence, to balance affordability, convenience, rentability and future resale value, it would be helpful to source out for resale ECs development that are located closer to a MRT station, and well connected by bus or LRT, providing easy access to MRT station. 

Wider selection of 1 bedroom unit when it comes to resale private condo 

Given that ECs are built primarily targeting families, not all ECs have got 1 bedroom or 2 bedroom units. In fact, there are many New EC developments that launched with only 3 bedroom units within the development mix. Lumina Grand EC and Altura Grant are examples of New ECs that launched without any 1 or 2 bedroom units. 

Shortlist of Resale EC with 1 bedroom units

*Price are tracked as of date of writing the article, for updated pricing consideration, feel free to drop us a whatsapp text

Shortlist of Resale EC proximate to MRT Station

Shortlist of ECs that will MOP in 2024, 2025, 2026, 2027, 2028

Turnkey solution to put thoughts into action – Decoupling Expertise

This article is 10 pages long, I was panting psychologically as I put the last word to this article. But your effort to put thoughts into action could be way easier.

That’s why we created Decoupling Expertise.

Our goal is to provide a fuzz free turnkey solution to help Singles purchase their first condo.

Starting upfront, there are no fees involved in our consulting services. We earn our keeps by taking a “co-broke” commission from the seller of the property that you purchase. So there is really no cost on your side.

Our suite of consulting service include

Singles home finances

• Singles budget and affordability calculation
• Helping Singles in IPA application
• Helping Singles overcome loan eligibility challenges
• Loan package comparison and advisory for Singles

Singles real estate strategy

• Property research and shortlisting
• Location selection
• Unit type selection
• Layout review for unit selected
• Negotiation and purchase of unit

Singles real estate planning

• HDB or private condo consideration
• Boutique condo or mainstream development consideration
• Solo purchase or joint purchase with other Singles
• First property flip strategy
• Second property flip strategy

Feel free to drop us a text for whatsapp chat. No sales obligation, promised 🤞

FAQ for Single PRs Looking to Purchase Resale ECs in Singapore