Kaeden Ong

What you should know about ECs

Posted by Kaeden Ong on 9th October 2014 in Blog

After almost one year of absence, three new executive condominium (EC) projects are being launched in September and October 2014.

Last Saturday, the 561-unit Bellewoods EC in Woodlands Avenue 5/6 by Qingjian Realty opened for e-application, attracting a crowd of 1,500 property hunters and more than 400 applications.

This is to be followed by Lake Life, the first EC project in Jurong for more than 15 years, which opens for applicants this weekend. Developed by an Evia Real Estate-led consortium, it comprises 546 units.

Bellewaters at Anchorvale Crescent, another Qingjian development, is the last to launch in 2014 and will offer 651 apartments. Applications start on 15 October.

Meanwhile, for those looking to purchase an EC unit, there are some facts and conditions you should know about.

 

Quick facts about ECs:

1. ECs are a public-private housing hybrid that caters to the sandwich class of home buyers who aspire to own a condo but cannot afford private property.

2. Developed and sold by private developers, prices of EC units are higher than HDB flats but their design and facilities are comparable to private condos.

3. Singapore citizens who form a family unit can buy brand new ECs. Singles above the age of 21 and foreigners have to purchase in the secondary market.

4. To qualify for a new EC, your average gross monthly household income cannot exceed $12,000. Resale ECs are exempt from this ruling.

5. Approximately 70 percent of the supply of units at an EC project is set aside for first-time buyers during the initial launch period.

6. The EC supply is tight because developers can only launch a project 15 months after the tender for the site has been awarded.

7. Buyers of newly launched ECs face a mortgage servicing ratio (MSR) cap of 30 percent of their gross monthly income.

8. Second-time buyers who apply for new EC projects where the land sale was launched on or after 9 December 2013 (i.e. Westwood Avenue, Canberra Drive and Anchorvale Crescent) will have to pay a resale levy of up to $50,000.

9. Unlike resale HDBs, buyers of EC units on the open market are not eligible for the CPF Housing Grant as such homes are considered private housing.

10. ECs can only be sold on the open market after a 5-year Minimum Occupation Period (MOP).

Credits: Property Guru

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