Rise of Land Price Force Developers to Increase New Ec Launch Price
Until now, the ECs are meant to serve as middle-income accommodation for Singaporeans. However, the rise of land prices has forced developers to increase the prices of the new ECs to make up for the losses.
Private condos are cheaper than ECs
ECs are new housing projects that are marketed by private developers and sold with government subsidies. They are similar in shape and style to private condos but are not approved by the HDB. Unlike private condos, ECs do not incur an additional buyer’s stamp duty (ABSD) on buyers who upgrade.
ECs are sold at cheaper prices than private condos due to cheaper land and construction costs. While land costs are relatively low, ECs are generally located away from the city centre and the bus interchanges. They are also governed by HDB selling restrictions for the first 10 years of ownership. They are also capped by a resale levy.
ECs are not as popular as private condos. However, some ECs are now trying to court buyers with new facilities and services. For instance, the Westwood Residences EC, which is the first bicycle-themed development in Singapore, features a maintenance area for bikers. ECs also come with swimming pools and gyms.
Prices of ECs can be 20% lower than private condos. However, it is still possible for ECs to catch up with private condos after the first ten years of ownership.
In order to buy an EC, you need to get a loan from a bank. The rate of interest on your loan is usually 0.1 percent higher than the current CPF interest rate. There are also grants available from the government to help you buy an EC. The Family Grant, for example, allows you to buy an EC for S$30,000 for first-time applicants. There is also a Half-Housing Grant available to second-time applicants.
ECs are supposed to cater for middle-income Singaporeans
ECs are a hybrid housing scheme meant to help middle income families in Singapore own their own homes. However, the demand for ECs is not as high as expected.
ECs are developed by private developers and priced at a much lower price than private condominiums. Most ECs are located in less affluent areas in Singapore. They are usually built on cheaper land and do not offer the convenience of nearby MRT stations.
In addition, ECs are subsidized by the government. They cost between 25% and 30% less than their private counterparts. However, this does not mean that ECs are cheaper than HDB flats.
To qualify for an EC, you must meet certain income requirements. Your monthly household income should not exceed $16,000. You also need to meet other requirements such as not owning any other properties in Singapore or overseas.
You can only buy an EC if you are a Singapore Citizen or Permanent Resident. In addition, your spouse must be a Singapore Citizen or PR to qualify for the loan.
There are also restrictions on the amount of income that you can earn in ECs. Generally, the maximum income ceiling is $16,000 for all applicants. You also need to meet the Minimum Occupation Period (MOP) for ECs of five years before you can sell your EC to a Singapore citizen or PR.…