Condominiums vs Executive Condominiums
Condominiums are generally called condos for short, and are generally large building complexes with multiple apartments which are owned by individuals. The apartments all have shared facilities, along with shared halls, heating systems and outdoor areas. Government influence is at a bare minimum when it comes to private condominiums.
Executive condominiums are quite different from private condominiums. For one, executive condominiums are exclusive to Singapore and aren’t found elsewhere. Secondly, there are lots of government regulations regarding this sort of building structure and the people who own and live in them. They are semi private, and the government has some restrictions on who can own them and live in them etc. Executive condominiums are subsidized by the government and are only available for specific people.
Here are the main difference between condominiums and executive condominiums:
Everyone is eligible to own private condominiums. There are no government restrictions in regard to this. However, executive condominiums have a specific target audience. They are meant for the average working class citizen of Singapore, who can’t afford private condominiums and homes due to their high prices, but can afford more than simple HDB flats. Their monthly income needs to be less than $14,000. Furthermore, such people should not have any property purchasing history in the last 30 months. Lastly, a person applying to purchase an executive condominium must be a Singaporean citizen. Fulfilling all those requirements, one is eligible for applying to purchase an executive condominium apartment.
Executive condominiums generally have a larger floor area than private condominiums. For instance, a private condominium with 3 bedrooms would be smaller than an executive one with exactly the same amount of rooms. This is, of course, a benefit of living in executive condominiums and one of the incentives the Singaporean government gives to its citizens to encourage them to use them.
In terms of amenities, both types of condominiums appear to be quite similar. They offer swimming pools, tennis courts, barbeque spots, security, a gym and a lobby. One possible advantage that private condominiums might have over executive condominiums is that they generally provide more than one parking space for tenants. However, as mentioned, executive condominiums are meant for people who are average citizens and not expected to have multiple vehicles.
Private condominiums can be in affordable ranges, but can also be extremely expensive, costing millions of dollars. Executive condominiums on the other hand cost much less, and are around 20-30% less expensive that average private condominiums depending on their size and location.
For private condominiums, ownership is transferred to the person purchasing the apartment as soon as the deal is made. However, in case of executive condominiums, the person purchasing it has to ‘own’ it for at least 10 years before complete ownership is transferred over to them. Only then can the executive condominium be sold to a third party member.
When deciding which type of condominium you want to purchase, these are the things that you should keep in mind.