Executive Condominiums: Tweaks or Treats?

Sample image of an artist’s impression of EC

As announced by the Ministry of National Development on 9th Dec 2013, Three new measures have been introduced for Executive Condominiums (EC). The detailed press release can be found here.

In summary, the 3 measures are as follows:

1. Reduction of EC cancellation fees
   Cancellation Fees will be reduced to 5% of purchase price for EC Buyers who cancel their bookings After signing the Sale & Purchase Agreement. The new cancellation fee will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed*.
2. Resale Levy for 2nd Timer Applicants
   Second-timer applicants who buy EC units directly from property developers will now pay a Resale Levy**, similar to second-timer applicants who buy Built-To-Order (BTO) flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed*.
3. Revision of Mortgage Servicing Ratio of Housing loan to 30% of Borrower’s Gross monthly income.

* The current EC projects (Tenders not closed yet) affected by the new ruling are: Westwood Avenue, Canberra Drive & Anchorvale Crescent.

** Download this HDB Resale Levy PDF to find out the various tiers of Resale Levy.

I’m sure the Developers of upcoming EC projects are formulating the necessary strategies to adapt to this new ruling, one of which is to set prices more attractively for applicants. It will be a very much anticipated 2014 indeed as everyone stays watchful of the launches to come.

Simply drop an email via the form below if you wish to find out which EC you can apply to!