Resale Executive Condominiums (ECs) are one of the cheapest housing options in Singapore, combining the affordability of public housing with the advantages of private property. However, the eligibility criteria for purchasing resale ECs can be different from buying new ECs. Therefore, it is crucial to understand these requirements before making a purchase decision.
Let’s break down the key resale EC eligibility requirements to help you navigate this unique property market and determine if it’s worth buying.
What Is a Resale Executive Condominium (EC)?
Before diving into the eligibility criteria, it’s important to understand what resale Executive Condominiums are.
ECs start as public housing, with eligibility criteria and subsidies similar to Housing and Development Board (HDB) flats. However, after 10 years, they are fully privatised and can be sold on the open market like private properties. At this stage, ECs lose the restrictions of public housing, making them available to a broader pool of buyers.
H2Eligibility for Resale ECs
1. Citizenship Requirements
For ECs being resold between the fifth and 10th year of their Minimum Occupation Period (MOP), only Singapore Citizens (SCs) and Permanent Residents (PRs) are eligible to buy. Unlike new ECs, where buyers must form a family nucleus (such as a married couple or parent-child combination), resale ECs during this period do not require this.
After the 10-year mark, once the EC is fully privatised, it can be sold to a much wider group of buyers, including foreigners and corporate entities, significantly broadening its market appeal.
2. Age Requirements
In order to purchase a resale EC, buyers must be at least 21 years old, regardless of whether they are buying individually or as part of a family unit. This minimum age requirement applies to all resale EC transactions.
Moreover, unlike new ECs, single buyers don’t need to be 35 years old for joint purchase of a resale EC with another single person. This makes resale ECs a great option for younger buyers looking for an affordable way to own private property.
3. Monthly Income Ceiling
One of the key distinctions between new and resale ECs is the absence of a monthly household income ceiling. For new ECs, the government imposes a cap of S$16,000 on combined household income. In contrast, resale ECs have no such income restrictions, allowing buyers with higher incomes to enter the market.
This flexibility makes resale ECs a viable option for those whose income may have increased over time or who are looking to upgrade from an HDB flat or another form of housing. Additionally, resale EC buyers can benefit from a higher Total Debt Servicing Ratio (TDSR) of up to 60% of their monthly income, enabling them to take on larger loans to finance their property.
4. Property Ownership Rules
Unlike new ECs, where buyers are restricted from owning private properties, purchasing a resale EC offers more flexibility. They are permitted to own other private residential properties, whether in Singapore or overseas. However, Permanent Residents (PRs) must sell their existing HDB unit within six months of buying a resale EC.
Singapore Citizens (SCs), on the other hand, can retain ownership of both a resale EC and an HDB flat simultaneously, providing them with more housing options.
5. Minimum Occupation Period (MOP)
Resale EC buyers must also adhere to the Minimum Occupation Period (MOP) rule, similar to new ECs. After purchasing a resale unit, homeowners are required to live in the property for at least five years before they are eligible to sell it on the open market. This ensures that the units are used for owner-occupation rather than immediate resale or speculation.
Resale ECs: A Flexible Option for Home Buyers
In summary, resale ECs offer a compelling option for those seeking to upgrade their homes or enter the private property market. With fewer restrictions compared to new ECs—such as the absence of income ceilings and more flexible ownership rules—they provide an attractive pathway for buyers who might not meet the criteria for new ECs. Over time, the eventual privatisation of resale ECs further enhances their value, making them a smart investment choice.
For Singaporeans, the most affordable option to upgrade to private property often lies in resale ECs, which offer both affordability and long-term benefits. However, it’s important to remember that certain buyers may still be liable for a resale levy, depending on their previous property ownership.
Understanding these eligibility criteria for resale ECs can be complex, so seeking guidance from a real estate expert can ensure you make the most informed decision for your next property investment.
