Struggling EC market gets a boost from housing policy shift

Higher income ceilings will help ease the glut.

Executive Condominiums have fallen from grace in recent months. The former market darlings have suffered languishing sales, due mainly to rising prices and waning demand.

However, the government’s recent move to make public housing more affordable by raising income ceilings is expected to give the EC market a much-needed boost.

“This is a timely boost to this segment of the market as demand has waned over the recent quarters. The number of unsold units has risen to an unprecedented 5,200 units as at July 2015. The raised income ceiling will increase the slice of demand pie for the EC market and hopefully improve the take up of this segment,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.

He noted that the higher income ceilings will allow another 0% of the population to qualify for this hybrid housing scheme.

Generally, ECs can only be sold to first-time home buyers and second-time HDB owners who are citizens and form a family nucleus.

ECs have a minimum occupation period of five years and will only be fully privatised after 10 years from completion.