Singapore’s executive condominium (EC) market is expected to receive a much-needed boost, following the government’s decision to increase the income ceilings from S$12,000 to S$14,000.
The EC market recently suffered languishing sales primarily due to waning demand and rising prices.
“This is a timely boost to this segment of the market as demand has waned over the recent quarters,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia, as cited in a report by Singapore Business Review.
In fact, the number of unsold EC units rose “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,” he said. Specifically, the raised income ceilings will allow another 10 percent of the population to qualify for the hybrid housing scheme, noted Sim.
ECs are generally sold only to first-time home buyers as well as second-time HDB owners who form a family nucleus and are citizens of Singapore.
These units have a minimum occupation period of five years and are considered fully privatised after 10 years from their completion.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
