EC Cooling Measures 2017-07-11T16:28:49+00:00

EC Cooling Measures

EC Cooling Measures Destroy Hopes of EC Buyers?

EC Cooling Measures

EC Cooling Measures for EC Executive Condo developments has implemented by the Government, to bring the terms for EC Executive Condo closer to that for public housing, and help support a stable and sustainable EC Executive Condo market.

This follows a review by MND on the EC Executive Condo Housing Scheme, taking into account feedback from the Our Singapore Conversation on Housing.

EC Cooling Measures : Reduce EC Cancellation Fees from 20% to 5%

Cancellation fees for EC Executive Condo will be reduced from 20% to 5% of the purchase price. This will relieve the financial burden of buyers who have to cancel their EC Executive Condo bookings after signing the Sale & Purchase Agreement.

The new cancellation fee will be applied to EC Executive Condo land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.

Unlike buyers of private housing, buyers of EC Executive Condo units cannot sub-sell their units if they cannot complete their purchase, and have to pay the cancellation fee. This has especially imposed significant financial burden on young couples who subsequently are not able to proceed with their marriage and hence the EC Executive Condo purchase.

EC Cooling Measures : Resale Levy for Second-Timer Applicants

Second-timer applicants who buy EC Executive Condo units directly from property developers have to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC Executive Condo land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.

EC Cooling Measures

Currently, second-timer applicants who buy EC Executive Condo units directly from property developers benefit from the lower EC Executive Condo prices arising from the initial eligibility and ownership restrictions imposed on EC Executive Condo purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity.

Summary at a glance:

First Subsidised Flat Type Resale Levy Amount (Households) Resale Levy Amount (Singles Grant recipients)
2-room $15,000 $7,500
3-room $30,000 $15,000
4-room $40,000 $20,000
5-room $45,000 $22,500
Executive flat $50,000 $25,000
Executive Condominium $55,000 Not applicable
First Subsidised Flat Type Resale Levy Amount (Households) Resale Levy Amount (Singles Grant recipients)
2-room 10%* or 15% 5%* or 7.5%
3-room 20% 10%
4-room 22.50% 11.25%
5-room 25% 12.5%
Executive 25% 12.5%

*Only applicable to 2-room flat sellers that upgrade to a larger flat type.

If the graded resale levy was not paid when you sold the first subsidised flat, i.e. you opted to defer the payment until you purchase/ take over another HDB flat, interest at a prevailing rate of 5% per annum is charged.

EC Cooling Measures : Revision of Mortgage Loan Terms (30% MSR)

EC Cooling Measures

The Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC Executive Condo units bought directly from property developers at 30% of a borrower’s gross monthly income.

This is in line with earlier measures introduced by the HDB and MAS to encourage financial prudence among buyers of public housing. It discourages EC Executive Condo buyers from over-stretching their finances and supports an affordable and sustainable Executive Condo (EC) market.

The 30% MSR cap will apply to EC Executive Condo purchases where the Option to Purchase is granted on or after 10 Dec 2013. The MSR cap of 30% will also apply to refinancing facilities of EC Executive Condo purchased directly from property developers and which are still within the minimum occupation period, unless certain conditions for exemption are met.

Others

  • The maximum strata floor area of new EC Executive Condo units will be capped at 160 square metres.
  • Sales of new dual-key EC Executive Condo units will be restricted to multi-generational families only.
  • Developers of future EC Executive Condo sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.
  • Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA). The GFA of such spaces in non-landed residential developments, including EC Executive Condo, will be counted as part of the ‘bonus’ GFA of a residential development and subject to payment of charges. This is in line with the treatment of balconies under URA’s current guidelines.

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