Executive Condominium (EC)
Income Ceiling from 24 August 2015 onwards
For Optiopn to Purchase (OTP) granted by developer from 24 August 2015
Household average gross monthly income must not exceed $14,000.
For OTP granted by developer before 24 August 2015
Household average gross monthly income must not exceed $12,000.
Published on 14 Jan 2013
SINGAPORE: National Development Minister Khaw Boon Wan said the government will continue to be vigilant of any abuse of the Executive Condominium (EC) housing scheme, and defended the scheme as still being relevant.
He was responding to questions raised in Parliament on the affordability of ECs.
He said: "It is a wonderful scheme. It protects middle-income Singaporeans from competition and ensures a market-friendly way of allowing them to buy condominiums at very affordable prices.
"If I can give you an analogy, it's like offering you a Lexus at the price of a Corolla, but only Singaporeans have this privilege for (buying it at that price). And they know in due course the price will go up above the level of a Lexus, so I think it is a very good scheme."
On January 11, the government announced several measures to cool the market, which has seen super-sized ECs being developed, with one sold at more than S$2 million.
To curb the situation, a size cap of 160 square metres has been imposed for each EC unit, while dual-key units can only be bought by multi-generational families.
Mr Khaw said the measures introduced should bring ECs back to their original intent and ensure developers build ECs to benefit the intended target buyers.
Subject: Govt to continue to be vigilant of abuse in EC scheme: Khaw
Khaw hints at changes to EC scheme
SINGAPORE - The executive condominium (EC) scheme cannot carry on in its current form, said National Development Minister Khaw Boon Wan, hinting that there may be changes afoot.
At a session of an Our Singapore Conversation on housing on Thursday, he noted the "sense of inequity" at the profit that EC buyers can make on their units.
First-time buyers of both ECs and Build-To-Order (BTO) flats get grants from the Housing Board, the size of which depends on their incomes. This ranges from $10,000 to $30,000 for EC buyers, and up to $60,000 for BTO buyers earning less than $1,500 a month.
But EC owners make more profit upon resale than the average flat owner, noted Mr Khaw.
"Because their upside in the current property market is so big, the subsidy they earn getting an EC compared to the subsidy that a lower-income family, through a three-room, four-room or five-room BTO... there's a substantial gap," he said.
"So there's this sense of inequity here, that the lower-income is getting less subsidy than somebody who is earning $12,000," he said, referring to the income ceiling for EC buyers. BTO buyers face a lower ceiling of $10,000.
ECs are meant for the "sandwiched" class of buyers who make too much to be eligible for BTO flats but still find private property out of reach.
This state of affairs, said Mr Khaw, goes against the principle of progressive HDB subsidies, where the lower-income should receive more. "So something is wrong somewhere," he said. "And therefore I think we cannot carry on the EC in this current (form)."
ECs are marketed and built by private developers rather than HDB. Buyers are subject to a minimum occupation period of five years, but after 10 years, ECs become private property and can be sold to foreigners.
According to data from the Singapore Real Estate Exchange, four-room flats in Chua Chu Kang appreciate faster than EC units from The Quintet - about 200 per cent compared to 90 per cent for the EC over seven years.
But EC buyers have made more profit in absolute terms: The median price of units in The Quintet rose from $478,333 in 2005 to $905,000 last year. In comparison, that of HDB four-room flats rose from $136,000 to $420,250 in the same period.
The Straits Times
Monday, Apr 29, 2013
- Executive Condo
- Existing Launches
- Private Condo