21 March 2019 :
Executive condominiums still good value
Executive condominiums (ECs) were originally introduced to cater to the aspirations and needs of the so called “sandwiched” class – those whose household incomes exceed the ceiling for public housing, but are not yet able to comfortably afford a private condominium.
Currently, the monthly household income ceiling to qualify for an EC purchase is set at S$14,000, while it is S$12,000 for those purchasing the Housing and Development Board’s (HDB) Build-to-Order (BTO) flats. Over the years, 66 ECs have been successfully launched. To date, 63 of them have been completed.
However, ECs have become somewhat of a rare commodity, driving up their prices in recent years. As of the end of the fourth quarter, there were just five unsold units in launched EC developments.
The next EC launch – in Sumang Walk – is expected to be later this year. Due to the low supply, EC prices have steadily increased. A unit at Northwave was sold in January for S$864 per square foot (psf), a 15 per cent increase from the project’s median price of S$751 psf when it was launched back in July 2016.
Adapted from: The Business Times, 21 March 2019