Tag Archives: EC

3 REASONS WHY EXECUTIVE CONDOMINIUMS ARE POPULAR

With a monthly household income of up to $14,000, purchasing a mass market private condominium is not out of the question; whilst those in the lower income bracket can easily take the HDB BTO route. Thus, amid the plentiful choices that a buyer has, why are Executive Condominiums (ECs) still popular in today’s market?

So far in 2016, there has been good and steady demand for ECs. According to data from the Urban Redevelopment Authority (URA), for the first seven months of 2016, 2,697 EC units were sold by developers. This has already surpassed the 2,550 units sold by developers for the whole of 2015.

A Buyer’s Guide to Auction

Photo: TREASURE CREST

In addition, some of the best-selling projects this year have been ECs. Wandervale and Treasure Crest were two of the most successful EC launches since 2014. Wandervale, the first EC to launch in 2016, sold some 50 per cent or its 534 units on the opening weekend; whilst in July, Treasure Crest sold some 72 percent of its 504 units on the first weekend. Existing EC projects have also been seeing sustained interest from buyers, with developments such as Bellewaters, The Vales and the Terrace seeing a steady stream of buyers even though they are not new launches.

For most EC buyers, the main appeal of ECs is the condominium address and lifestyle but at a cheaper price. ECs are typically priced $750 to $850 per square foot whilst mass market condominiums within the vicinity are likely to be $1,000 to $1,100 per square foot onwards.

After the minimum occupation period of 5 years, the EC unit can be resold on the secondary market to Singaporean or SPR buyers whilst 10 years after completion, the EC unit can also be sold to foreign purchasers. So, depending on the state of the market at the relevant point in time, the EC buyer already enjoy a larger headroom for capital gain as compared to someone who had bought a mass market condominium unit at around the same time as the EC buyer.

Further, for eligible first-time EC buyers, they have the added advantage of using the CPF Housing Grant of $30,000 to help pay for the purchase price. There are no housing grants available for private condominiums.

The second reason is a practical one. EC buyers are owner-occupiers and they are purchasing the unit to start a family or to house a family.

Majority of EC projects are designed to comprise mainly 3 and 4-bedroom units; with the exception of some that may have a small selection of 1 and 2-bedroom units. Comparatively, a mass market condominium may have more numbers of smaller units than larger units as they also target the investor buyers that prefer a lower price quantum.

The third reason is the living space; and size matters when you have to house a family. Treasure Crest EC’s 3-bedroom units are sized 958 to 1,249 square feet whilst its 4-bedroom units are 1,345 square feet. Comparatively, private condominium’s 3-bedroom units may be about 880 to 1,100 square feet and their 4-bedrooms may not exceed 1,300 square feet.

 

By – ERA

Keep calm and buy Executive Condominium

GOOD NEWS 

Income Ceiling for purchasing of Executive Condominium has been revised from $12000 to $14000, for more info, read HERE

Look no further, contact me @ 98803768 for a non obligation discussion in getting your dream home now.

Click HERE for more Executive Condominium information. 

Keep calm and buy ECSource – HDB

Avoid the worst time to sell your HDB

Owners planning to sell their Housing & Development Board (HDB) flats would be wise to study the supply situation and avoid certain peak periods which may weaken their bargaining position. These peak seasons may arise when buyers of executive condominium (EC) dispose their existing HDB flats once they receive keys to their new homes. For instance, more than 6,000 EC units are expected to be completed in 2018, putting the year in the alert zone.

Under HDB rule, upgraders must sell their existing HDB flat within six months from the issuance of the Temporary Occupation Permit (TOP) for the EC. Buyers whose ECs received TOP in 1Q15, for example, would have to sell their existing HDB flat by 3Q15. Such restriction could result in a surge of HDB resale flats entering the market in certain seasons, tipping the market in favour of buyers and putting sellers in a disadvantaged position.

Surveys on certain EC projects showed that such upgraders may account for more than half of new EC buyers. An anticipated 8,800 HDB resale flats therefore could enter the market from now until 4Q19, based on half the 18,083 EC units receiving TOP between 4Q14 and 4Q19. The bulk of these or 3,400 resale flats will come on-stream in 2018, followed by 1,800 units in 2016 (see Table 1 and Figure 1). To put things in perspective, they represent 20% and 11% of total HDB resale volume in 2014 respectively.

Table 1: Estimated TOP dates of EC projects and disposal of HDB flats

Estimated TOP dates of EC projects and disposal of HDB flats

Source: Developers, HDB, URA, The Edge Property

Against this backdrop, sellers might consider putting their units on the market this year instead of 2016 to avoid head-on collision with these upgraders. Another incentive in favour of selling this year would be the clipping of Build-To-Order (BTO) supply from 22,455 units in 2014 to 16,900 in 2015. This could potentially draw buyers back to the resale market and reverse the downtrend in prices. According to latest statistics from HDB, prices of resale flats have declined for seven consecutive quarters for a total of 9.2% from 2Q13’s peak to 1Q15.

Figure 1: Projected supply of HDB resale flats disposed by EC buyers

Projected supply of HDB resale flats disposed by EC buyers

Source: HDB, URA, The Edge Property 

Those looking to sell on a longer time horizon might wish to note several window periods where supply from upgraders would be on a low ebb such as the second half of 2017. Barring any changes in market sentiments, it might be prudent for sellers to err on the side of caution and avoid peak periods that might psychologically empower buyers and put pressure on prices.

The year 2018 will see a strong surge in supply from upgraders of ECs that are currently being marketed such as The Amore,Bellewaters, Bellewoods, Lake Life and The Terrace. Eight more EC projects are expected to be launched this year.

Source - THE EDGE, HDB URA
*This article appeared in The Edge Property Pullout of Issue 677 (May 18) of The Edge Singapore.

2 Executive Condominium Housing Development Sites at Yishun

On  27 Mar 2014,  the Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) will be releasing three residential sites for sale in March 2014 under the 1st Half 2014 (1H2014) Government Land Sales (GLS) Programme in order to provide developers and home buyers with more choices for private housing,  Together, these three sites can yield about 1,300 residential units. The two Executive Condominium sites at Yishun Street 51 are launched for sale under the Confirmed List.  I guess the winning developers will leverage of the superior geographical advantage of these 2 plot of lands and oriented most units  to face the Orchid Park Country Club Golf Course and the Lower Seletar Reservoir. Cool. Home owners may admire a panoramic view of Seletar Reservoir and Orchid Country Club’s golf course from the comfort of their own home which is hard to find in Singapore now a days where views are often obstructed by high rise buildings.  So potential buyers , stay tuned.  

View of Ochird Country Club Golf Course

View of Ochird Country Club Golf Course

Below are the details of the sale sites –

Proposed Development Executive Condominium Housing
Location Yishun Street 51 (Parcel A)  (PDF 311KB) Yishun Street 51 (Parcel B)  (PDF 310KB)
Site Area 17,940.20 sq m 18,260.40 sq m
Maximum GFA 
[GPR]
50,232.56 sq m
[2.8]
51,129.12 sq m
[2.8]
Maximum Building Height 56m AMSL 56m AMSL
Estimated Dwelling Units 490 520
Lease Term 99 years 99 years

As of 22/5/2013 12 noon, 6 bids were received for Yishun Street 51 (Parcel A) and 8 bids were received for Yishun Street 51 (Parcel B) . 

The details of the provisional tender results are below:

I) Executive Condominium Housing Site at Yishun Street 51 (Parcel A)

S/N
Name of Tenderer
Tender Price
($)
$psm/GFA
($)
1
Verwood Holdings Pte. Ltd. and TID Residential Pte. Ltd.
$178,500,000
$3,553.47
2
Sim Lian Land Pte Ltd
$174,800,000
$3,479.81
3
Nanshan Group Singapore Co. Pte. Ltd.
$173,100,000
$3,445.97
4
FCL Tampines Court Pte. Ltd. and KH Capital Pte. Ltd.
$171,980,000
$3,423.68
5
Hoi Hup Realty Pte Ltd, Sunway Developments Pte Ltd and Investment Focus Pte Ltd
$157,350,000
$3,132.43
6
Wee Hur Development Pte Ltd
$145,000,000
$2,886.57

 

ii) Yishun Street 51 (Parcel B)

S/N
Name of Tenderer
Tender Price
($)
$psm/GFA
($)
1
JBE Holdings Pte Ltd
$184,130,000
$3,601.27
2
Nanshan Group Singapore Co. Pte. Ltd.
$176,200,000
$3,446.18
3
Verwood Holdings Pte. Ltd. and TID Residential Pte. Ltd.
$176,000,000
$3,442.27
4
FCL Tampines Court Pte. Ltd. and KH Capital Pte. Ltd.
$164,010,000
$3,207.76
5
Wee Hur Development Pte Ltd
$155,000,000
$3,031.54
6
Hoi Hup Realty Pte Ltd, Sunway Developments Pte Ltd and Investment Focus Pte Ltd
$154,730,000
$3,026.26
7
Sim Lian Land Pte Ltd
$150,280,000
$2,939.23
8
CEL Residential Development Pte Ltd
$138,800,000
$2,714.70

 

Source - HDB

Government Land Sales (GLS) Programme – 1H2014

The Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) will be releasing three residential sites for sale in March 2014 under the 1st Half 2014 (1H2014) Government Land Sales (GLS) Programme to provide developers and home buyers with more choices for private housing. Together, these three sites can yield about 1,300 residential units. The two Executive Condominium sites at Yishun Street 51 are launched for sale under the Confirmed List, while the residential site at Margaret Drive will be made available on the Reserve List.

North residents, it’s chance for your to upgrade. Almost 1000 EC units available in near future.

 

Government Land Sales (GLS) Programme

 

Location PLan - Parcel A Location PLan - Parcel B Location PLan - Parcel C

Refining the Executive Condominium Housing Scheme

http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=5023&category=Press+Release&year=2013&RA1&RA2&RA3

Refining the Executive Condominium Housing Scheme
09 Dec 2013 07:30 PM
The Government will implement three measures for Executive Condominium (EC) developments to bring the terms for ECs closer to that for public housing, and help support a stable and sustainable EC market. This follows a review by MND on the EC Housing Scheme, taking into account feedback from the Our Singapore Conversation on Housing.

I. Reduce EC Cancellation Fees

2   First, we will reduce the cancellation fees for ECs from 20% to 5% of the purchase price. This will relieve the financial burden of buyers who have to cancel their EC 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.

3   The cancellation fee for ECs is currently set at 20% of the purchase price, similar to those for private housing. However, unlike buyers of private housing, buyers of EC 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 purchase.

4   We will therefore align the cancellation fees for EC units with that for HDB Build-to-Order (BTO) flats, and reduce them from 20% to 5% of the purchase price.

II. Resale Levy for Second-Timer Applicants

5   Second, we will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy 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.

6   Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC 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.

III. Revision of Mortgage Loan Terms

7   Third, the Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC 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 buyers from over-stretching their finances and supports an affordable and sustainable EC market.

8   The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.1

Enquiries

9   For further enquiries on any of the above measures, the public can contact the HDB Sales Customer Service Line: 1800-866-3066.

Issued by: Ministry of National Development
Date 9 Dec 2013


 

 Source - MND Singapore

4 Residential site launched by URA & HDB

To provide developers and home-buyers with more choices for private housing, the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) will be releasing four residential sites for sale in November 2013 under the Government Land Sales (GLS) Programme for the second half of 2013 (2H2013).

The residential site at Upper Paya Lebar Road and two Executive Condominium sites at Canberra Drive and Anchorvale Crescent are launched for sale today under the Confirmed List. The Executive Condominium site at Choa Chu Kang Drive is made available for application today on the Reserve List. Looking forward for all residential site as all are within walking distance to MRT stations. Buyers whom do not wish to wait so long can click here for existing condo and EC launch.

Together, these four sites can yield about 2,350 residential units.

 

UPPER PAYA LEBAR ROAD

CHOICE LOCATION WITH EXCELLENT CONNECTIVITY
The land parcel is located within an established residential estate and near the Bartley Mass Rapid Transit (MRT) station. Future residents will enjoy convenient access to all parts of Singapore via the MRT system and major expressways such as the Central Expressway and Pan Island Expressway.

RETAIL AND DINING
A wide range of shopping and dining facilities are available at the nearby Serangoon Town Centre. Heartland Mall and the NEX Shopping Mall which are located just 10 minutes’ drive away.

SCHOOLS
Reputable schools such as Maris Stella Primary and High Schools as well as Paya Lebar Methodist Girls’ Primary and Secondary Schools are also nearby.

PARTICULARS OF LAND PARCEL

Location Upper Paya Lebar Road
Site Area+ 20,077.6 m2
Lease Period 99 years
Allowable Development Residential
Permissible Gross Floor Area (GFA) 56,218 m2
Maximum Building Height 64 m AMSL ++
Project Completion Period+++ 60 months

Government Land Sale Nov 2013 - Upper Paya lebar

 

CANBERRA DRIVE – 

Sembawang-Canberra+Dr

Particulars of Land Parcel
Location : Canberra Drive
Proposed Development : Executive Condominium
Site Area : 28,562.5 sqm
Permissible Gross Floor Area [Gross Plot Ratio] : Maximum – 59,981.25 sqm [2.1]
Minimum –53,983.13 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

Location PLan - Canberra Drive

ANCHORVALE CRESCENT –

Anchorvale Crescent

Particulars of Land Parcel
Location : Anchorvale Crescent
Proposed Development : Executive Condominium
Site Area : 16,280 sqm
Permissible Gross Floor Area [Gross Plot Ratio] : Maximum – 48,840 sqm [3.0]
Minimum – 43,956 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

Location PLan - Anchorvale Crescent

 

CHUA CHU KANG DRIVE – 
Choa+Chu+Kang+E6

Particulars of Land Parcel
Location : Choa Chu Kang Drive
Proposed Development : Executive Condominium
Site Area : 19,058.0 sqm
Permissible Gross Floor Area [approx. Gross Plot Ratio] : Maximum – 53,362.4 sqm [2.8]
Minimum –48,026.16 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

 

Source - HDB, URA

 

 

Lets Talk About Thomson Line

thomson-lineThe Thomson Line (TSL) is a 30km underground train line that is expected to be fully completed in 2021. The sixth MRT line will have 22 stations and 6 interchange stations which will link to the East-West Line, North-South Line, North-East Line, Circle Line and the future Downtown Line. Commuters can start enjoying the TSL from 2019 when the first stretch (three stations from Woodlands North to Woodlands South) will be completed. The second stretch (six stations from Springleaf to Caldecott) will be completed in 2020 and the final stretch (13 stations from Mount Pleasant to Gardens by the Bay) in 2021. The new Thomson (TSL) MRT line , costing S$18 billion is set to move more than passengers. It’s going to move housing prices upwards  in ulu areas that are not quite accessible via the MRT currently, like Woodlands, Lentor and Springleaf.

How is the construction of The Thomson Line (TSL) inpact properties nearby? 

  • Temporary Decrease in rental income – Properties located close to The under constructionThomson Line (TSL) construction sites (around 2-300 metres) might see a drop in rental income. Those who are rarely home during construction hours might not really care about the construction noise, but for those tenant with families will start looking for alternatives lodging. I mean who will wish to stay next to a construction site where you will enjoy a symphony of piling and drilling noise? Private property that might be affected are – Landed House along Upper Thomson Road, The Calrose, Thomson Grove, Far Horizon Garden , Garden @ Bishan, etc. Advice to owners , secure a longer lease NOW with your current tenant if possible to ensure stable rental income. It will definitely be tougher to get a tenant once construction starts. To rub salt onto the wound, the market will be flooded with newly TOP project in the next few years and thus pampered tenants with abundance choice. Be realistic, reduce your rental asking if required.
    But dear owner, don’t get dishearten, good news is, rental income will  increase substantially FOR SURE once The Thomson Line (TSL) construction is complete.
  • Rise in Capital Gains after Completion of  The Thomson Line (TSL) – It’s expected that properties within 500 metre of The Thomson Line (TSL)  will appreciate by 20 – 30% once construction is completed. Areas like Springleaf, Lentor which is quite inaccessible now might rise a lot as residents can look forward to MRT stations at their doorstep.  They will enjoy savings in travelling times. For instance, a resident travelling from Sin Ming to Republic Polytechnic will have his journey time reduced by half, from 50 minutes to 25 minutes. And residents from Springleaf Estate in Sembawang will only need 35 minutes to travel to the Great World City shopping mall, instead of the current 60 minutes. Golden Rule in property market Singapore, as long as the property is near MRT, it is a good investment. Take note some Executive Condo are for sale now in Woodlands and Sembawang, its quite near the future Thomson Line station. For those buyers whom are qualify to apply for ECs. You might seriously consider now. It take some years for the ECs to complete. By the time, the Thomson Line MRT should be almost done. Click HERE for EC for sale.

Below are some locations which readers might wants to pay special attention:

thomson line woodlands

thomson line woodlands

Woodlands Station (TS2) will serve as a interchange for the current North-South Line and upcoming Thomson line. Base on URA’s statistic , private properties which is within walking distance to the future Woodlands Station (TS2 ) such as Rosewood, Casablanca are transacting between $850-$950 psf. It is very affordable in today’s market. I see potential in this few properties. Woodlands Regional Centre (WRC) is one of four regional centres identified under the recently announced Land Use Plan. The Woodlands Regional Centre is envisioned to be Northern Gateway to Singapore – A vibrant live-work-play environment that will serve as the key commercial cluster in the North Region, with excellent accessibility to the city.  It will certainly enhance the property’s price over there once everything is in place in near future.

The Woodlands Regional Centre is envisioned to be: Northern Gateway to Singapore: A vibrant live-work-play environment that will serve as the key commercial cluster in the North Region, with excellent accessibility to the city. - URA

thomson line lentor

thomson line lentor

Lentor Station (TS5)  once ready, will serve residents staying around the Far Horizons Gardens, Thomson Grove, The Calrose, Seasons Park and of course the landed house along Lentor area. I believe there is potential en-bloc for Far Horizons Gardens and Thomson Grove, which is built on 1982 and 1984 respectively. Newer projects like Seasons park’s transacted price this year are hovering around $850 psf range. Property prices will rise, confirm plus chop! But for those landlords whom currently renting out units might not be too happy. The construction will , to some extend reduce rent prices in the short term.

thomson line-upper thomson

thomson line-upper thomson

Upper Thomson (TS8) A common complaint about this area is that it’s hard really to get to especially if you do not drive. Most of the business owner over there are serving only regulars old customers.

When the The Thomson Line (TSL) is up, I’m pretty sure business will improve. The MRT will also be a boon to the many shophouses and eateries around the area. It will be more convenient for commuters to visit famous eateries around there. New launches around the future MRT line like THOMSON THREE & THREE 11.  Residents can travel from Upper to Downtown Orchard in about 15mins train ride when Thomson line is ready. Exciting right? 

Meng's Kitchen - 246B Upper Thomson Rd  Singapore 574370

Meng’s Kitchen – 246B Upper Thomson Rd Singapore 574370

With the COE price keep raising, it makes more sense to buy a property that is near to MRT. No only it will save you in travelling timing and cost, it fetch better rental and appreciate faster then those property which is not near MRT too.

Interested to know more? feel free to contact me for a non obligation discussion.

Source : http://www.lta.gov.sg , http://www.ura.gov.sg

4 Industrial sites up for tender

JTC Corp and the Urban Redevelopment Authority yesterday released four sites with a total land area of 3.4 ha for sale under the Second Half 2013 Industrial Government Land Sales programme. – http://www.todayonline.com/

JTC LogoTwo sites in Tuas South, plots 4 and 28, have a 21-year 9-month tenure and a gross plot ratio of 1.0. They are zoned for Business-2 development. Under URA’s guideline, Business 2 or B2 development are areas used or intended to be used for industry, warehouse, utilities and telecommunication uses, whereby the business uses will imposed nuisance buffer more than 50m and within health and safety buffers. Special industries such as manufacture of industrial machinery, shipbuilding and repairing, may be allowed in selected areas subject to evaluation by the Competent Authority.

Tuas South Street 7 Plot 28 – 

Tuas South Street 7 Plot 28

PARTICULARS OF LAND PARCEL​ ​ ​
Location​ Tuas South Street 7 (Plot 28)
Site Area 5,047.4 sqm​
Lease Period 21 years 9 months
Allowable Development​+ B2
Permissible Gross Plot Ratio​​ 1.0​
Maximum Building Height​++​ 63.5m AMSL*​
Project Completion Period​+++​ 60 months​
Developer’s Packet^
Purchase Developer’s Packet at $107
(inclusive of GST)
Information Counter, The JTC Summit
Mon-Fri, 9am-12pm & 2pm-5.30pm
1. Location Plan
2. Control Plan
3. Topographical Plan
4. Cadastral Survey Plan
5. Soil Test Report
6. Conditions of Tender
7. Technical Conditions of Tender
8. Envelope Cover
Latest Amendments to Tender Documents​ Nil​
Specific Questions & Answers​ Nil​
Status Open for Tender
Date of Launch 29 August 2013
Date of  Tender Closing 10 October 2013

Tuas South Street 6 Plot 4 – 

TausSouthAve43-Y13-Plot23-Loc.jpg

PARTICULARS OF LAND PARCEL​ ​ ​
Location​ Tuas South Street 6 (Plot 4)
Site Area 3,036.7 sqm​
Lease Period 21 years 9 months
Allowable Development​+ B2
Permissible Gross Plot Ratio​​ 1.0​
Maximum Building Height​++​ 63.5m AMSL*​
Project Completion Period​+++​ 60 months​
Developer’s Packet^
Purchase Developer’s Packet at $107
(inclusive of GST)
Information Counter, The JTC Summit
Mon-Fri, 9am-12pm & 2pm-5.30pm
1. Location Plan
2. Control Plan
3. Topographical Plan
4. Cadastral Survey Plan
5. Soil Test Report
6. Conditions of Tender
7. Technical Conditions of Tender
8. Envelope Cover
Latest Amendments to Tender Documents​ Nil​
Specific Questions & Answers​ Nil​
Status Open for Tender
Date of Launch 29 August 2013
Date of  Tender Closing 10 October 2013

URA-logoThe two other plots in Gambas Crescent, parcel 1 and 2, have a 30-year tenure and a gross plot ratio of 2.5. They are zoned for Business-1 development. These are areas used or intended to be used for industry, warehouse, utilities and telecommunication uses for which the relevant authority (eg. NEA) does not impose a nuisance buffer greater than 50m.

This 2 B1 Site at Gambas Crescent is accessible for any consumer because it is near the Sembawang MRT Station and the Sembawang Bus Interchange. It is also located near residential sites which ensure that the future development at the land parcel will receive a steady flow of laborers. Note that it is also located very near to the upcoming EC launch at Sembawang, Skypark Residences.

Source – http://www.jtc.gov.sg/Sales-Rental/Government-Land-Sales-Programme/Pages/default.aspx

http://www.todayonline.com , http://www.channelnewsasia.com , http://www.ura.gov.sg/sales/GLS-URA.html

For industrial Properties for sale, please visit HERE

Strong demand for EC , thanks TDSR

More buyers are now finding cheaper alternatives in the executive condominium (EC) market as stricter loan requirements set for private property,  media reports said.

The Topiary EC

The Topiary EC

The shift is due to the introduction of the Total Debt Servicing Ratio (TDSR) framework, which covers a borrower’s total debt repayment including mortgages. The Total Debt Servicing Ratio (TDSR) framework is to ensure borrowers are not overleveraged. TDSR calculates the percentage of your income that can go into servicing your loan. At present, the highest TDSR  is 60%.

That means your housing loan repayments, after adding all your repayment obligations (Personal loans, car debts, credit loans, renovation loans, etc.), cannot exceed 60% of your income.

This buying trend became evident when recent EC launches reportedly saw bullish sales.

 Sea Horizon EC in Pasir Ris was 3 times oversubscribed after receiving about 1,500 e-applications, the highest for an EC launched in 2013 to date. The Ecopolitan executive condominium (EC) was two times oversubscribed too.
Owners with existing HDB flats and who are applying for an EC unit have more chances to obtain the maximum loan quantum for a mortgage.

Buyers are required to sell their flats upon completion of an EC development under current HDB rules. This means banks will only consider the monthly payment on the EC and other debt obligations when evaluating the buyer’s loan eligibility.

But this is not the case for private property mortgages. Even if an upgrader is thinking of selling his HDB flat after buying a private property, the bank will still include the monthly mortgage instalment of the HDB flat together with the new commitment towards the private property when calculating the loan quantum he is eligible for at the point of application.

This reduces his or her chances of getting a bigger mortgage loan, and affects affordability especially if they have substantial debt obligations.

Source – MAS, Propertyguru, HDB

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