Thinking of selling your EC (Executive Condominium) after 5 years?
Do you know that EC price had increased more than 118% from 2010 to 2024
Good day! I have some readers who are curious about their EC (Executive Condominium) property after reading my article on HDB BTOs approaching MOP (Minimum Occupancy Period).
Most of the owners are interested to know whether they should sell their EC (Executive Condominium) right after its MOP of 5 years or to wait further.
Table of Contents
Introduction to ECs (Executive Condominium)
ECs (Executive Condominium) were introduced in 1995 as a public-private hybrid housing with the aim of providing private housing at affordable prices, catering to the sandwiched income group.
In today’s context, these are households with incomes up to S$16,000.
Like Condominiums, ECs are designed, constructed and sold by private developers. And comes with a full suite of condominium facilities and is physically indistinguishable from private condominiums in terms of design and physical outlook.
Like HDBs, buyers of ECs are entitled to CPF housing grants; executive condo eligibility checks and ec grants can be found on HDB website.
New EC owners also has to fulfill MOP of five years before the property can be sold in the open market to Singaporeans and PRs. ECs can only be sold to foreigners after 10 years, when the property is considered fully privatized.
In recent years, ECs has no doubt become popular amongst Singaporeans, especially the younger generation.
Recent EC launches from 2020 to 2024 has a considerably high take-up rate on launch day itself.
So if you are currently staying in such a popular housing option and are wondering if you should ‘give-up’ on your EC now or in the near future?
Let’s take a look at how some of the ECs have performed and whether it is worth-while to let go of your home.
Price chart for recent MOP Executive condominium
Wow! If you own an EC that is approaching MOP, this is great news for you! You are most likely sitting on a capital gain of S$300K to S$800K right now!
Check Your Home Price Indication
SRX x-value is only one of several ways I help my clients obtain an indicative valuation of their homes.
For EC homeowners, you can request an in-depth report of your development today!
You may sell your EC to fully maximize and secure your capital gain.
What to do after that? Well, you can explore some of these available options thereafter:
1. Sell your EC (Executive Condominium) and Buy another condominium
ECs are typically located outside of central region (OCR) and it may not be as convenient traveling to your workplace or to your kid’s school.
You can take this opportunity to move to another condominium, in a location of your choice.
You may also consider upgrading to a bigger unit and invest in a condominium with higher chances of appreciation.
Let’s do a quick financial calculation – an average 4 bedroom EC at Sol Acres (1,227 sqft) that was purchased at $900+K, could fetch about $1.7M to $1.8M in today’s market – you can then use the sales proceeds of $700K to $850K towards your next purchase without topping up cash!
2. Sell your EC (Executive Condominium) and buy a HDB
This is worth considering if you are near retirement – you can cash out your sales proceeds to buy a HDB and lower your commitment towards monthly housing loan.
In some cases, owners who have sufficient CPF/cash, can pay for the HDB in full and become essentially loan-free.
This may also be an option for owners who are thinking of lowering their monthly commitment while taking a longer-break from their stressful work environment.
*Do note that there is a 15 month wait out period for owners that is below 55 years old before you can purchase a HDB.
3. Sell your EC (Executive Condominium) and buy 2 private condominiums
If your financials allows, you may consider maximizing your investment returns for the next 5 to 10 years by buying 2 properties – typically husband and wife buying under separate ownership to avoid paying Additional Buyer Stamp Duty (ABSD).
One condo will be your home, while the other will be an investment home to generate passive rental income and for potential capital gains.
However, this will require in-depth financial planning for both owners and when done well, there is a good chance that no cash top-up is needed – sales proceeds may be sufficient from the sale of your EC.
Do also note that by taking this step, much research and homework has to be done as different properties and developments have different returns.
It will be helpful to follow up closely with Master Plan announcements, Transport Development and Potential Future Development plans.
4. Part purchase / Decoupling of EC (Executive Condominium) and buy another condominium
This is somewhat similar to point 3 but instead of selling your home and buying 2 properties, this is where either owner buys over the whole share of the property – this is sometimes referred to as Decoupling as well.
In doing so, one party’s name can be freed-up to purchase another property without having to pay ABSD. Again, this will require in-depth financial planning for both owners to gauge the feasibility.
Conclusion
No matter what your final decision is, it is crucial that your decision is an informed one.
There is never one-strategy that fits all considering everyone’s needs and priorities are distinct – detailed financial calculations and timeline planning is of utmost importance for your individual strategy to work.
Bonus for my readers
Making the choice to sell your Executive Condominium (EC) after its Minimum Occupation Period is a major step. It’s not just about the act of moving; it’s about progressing to something new. Perhaps you’re envisioning life in a larger home, or maybe you’re considering a switch to a different neighborhood. Whatever is sparking this change, it’s a journey into new territory, isn’t it?
Why not arm yourself with all the information and choices at your disposal, and take some time to hear about my experiences? It could really help you make a well-rounded, informed decision.
Topics I will be covering during the Bonus discussions:
Understanding the MOP
Market Conditions
Financial Considerations
Timing for Sale
Upgrading or Downsizing
Preparing Your EC for Sale
Navigating the Selling Process
Your Unique Value Proposition
Success Stories
Next Steps
Who should apply?
First-time EC buyers who are trying to decide whether to sell their property after the minimum occupation period (MOP) of 5 years.
Existing EC homeowners who are considering upgrading to a private property or downsizing to a smaller unit.
Property investors who are interested in the EC market and want to know whether to hold or sell their EC unit after 5 years.
Real estate agents who want to advise their clients on the pros and cons of selling an EC after 5 years.
Questions and Answers
Q1) What are some things to consider before selling an EC?
Answer: Before selling your EC, it’s important to consider factors such as the current market conditions, your financial goals, and any penalties or fees associated with the sale of your home.
Q2) How can a realtor help with selling an EC?
Answer: That’s a great question! A realtor can provide valuable guidance and support throughout the selling process. This includes helping you price your EC appropriately, marketing your property effectively, negotiating with buyers, and handling all the paperwork and legal requirements involved in the transaction.
Q3) How can I get in touch with you for more information?
Answer: Of course! Having an initial discussion is a great starting point, and there is absolutely no obligation to work with me after that.
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Self Introduction
Hi, I’m Rick Long
With decades of experience in Singapore’s real estate market, I’ve had the privilege of being mentioned in media outlets such as Channel NewsAsia, The Straits Times, and 99.co.
Over the years, I’ve written extensively on the local property landscape — tackling the real questions buyers and sellers face, and helping them navigate each step with greater clarity and confidence.
Many of my clients have become long-time friends — their trust and kind reviews continue to inspire me to raise the bar in everything I do.
I believe real estate should be strategic, seamless, and deeply aligned with your life’s journey.
Related Articles:
Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)
Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)
Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)
What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)
Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)
Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)
What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)
Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)
Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)
Should you sell your EC after 5 years? – Read more (Selling EC)
With the current situation. Whats your take on moving forward. My unit is going MOP soon. Have not decided if i should sell
Hi Mr Chan. thanks for reading our article. I would suggest assessing your current situation/life stage. Understand your priority in moving forward. We would work out the financial calculation with you and see the options available.
Thank you for the information. For option 2 – sell EC buy resale HDB – am I able to buy a resale hdb first then sell my EC? What is the time frame?
Hi Jenny,
Yes you can purchase a resale Hdb 1st. Time frame is 6month to sell after completion of the Hdb.