Cooling Measures For Executive Condo Market
Help support a stable and sustainable EC market
Cancellation fees for Executive Condo will be reduced 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 Executive Condo land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.
Unlike buyers of private housing, buyers of Executive Condo units cannot sub-sell their units if they cannot complete their purchase, and have to pay the cancellation fee. This has especially imposed a significant financial burden on young couples who subsequently are not able to proceed with their marriage and hence the Executive Condo purchase.
Second-timer applicants who buy Executive Condo unit directly from property developers have to pay a resale levy, similar to second-timer applicants who buy BTO flats.
Find out more here.
The Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for Executive Condo 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 Executive Condo buyers from over-stretching their finances and supports an affordable and sustainable Executive Condo (EC) market.
The 30% MSR cap will apply to Executive Condo purchases where the Option to Purchase is granted on or after 10 Dec 2013. The MSR cap of 30% will also apply to refinance facilities of EC Executive Condo purchased directly from property developers and which are still within the minimum occupation period unless certain conditions for exemption are met.
The maximum strata floor area of new Executive Condo units will be capped at 160 square metres.
Sales of new dual-key Executive Condo units will be restricted to multi-generational families only.
Developers of future Executive Condo sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.
Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA). The GFA of such spaces in non-landed residential developments, including Executive Condo, will be counted as part of the ‘bonus’ GFA of residential development and subject to payment of charges. This is in line with the treatment of balconies under URA’s current guidelines.