Which developers will benefit from higher EC income ceilings?

120,000 more households are now eligible for public housing.

Developers with exposure to the Executive Condominium (EC) market will get a boost from the higher income ceilings for aspiring EC buyers.

According to UOB Kay Hian, these developers include City Developments, Sim Lian, Chip Eng Seng, Koh Brothers, Heeton and Keong Hong.

UOB Kay Hian noted that the higher income ceilings will expand the public-housing eligibility pool by about 120,000 households.

Although the new measures are expected to negatively impact the mass private housing segment, UOB Kay Hian believes that stable public housing prices will support the private residential property market in the long term.

“Near-term negative impact on private-housing demand would be offset by long-term stabilisation effect. We believe the market has over-discounted the negative prospects for the sector. Besides, the demand from the newly eligible pool will first go to fill the gap created by the restrictions on permanent residents’ purchases before significantly affecting private housing demand,” the report said.