View Full Version : EC developers may release smaller units due to new measures: analysts
princess_morbucks
10-12-13, 23:24
http://www.channelnewsasia.com/news/business/singapore/ec-developers-may-release/918184.html?utm_source=dlvr.it&utm_medium=twitter
SINGAPORE: With a 30 per cent cap on how much house buyers can borrow to finance their executive condominiums (ECs), analysts expect developers to release more smaller-sized units for sale.
However, sales for EC units are expected to slow down with the measures, especially since December is traditionally a lull period for the property market.
Authorities have capped the Mortgage Servicing Ratio (MSR) for housing loans for EC units bought directly from property developers at 30 per cent of a borrower's gross monthly income.
Housing developers said that those with a household income of S$10,000 and a loan period of 25 years can only borrow up to S$600,000.
This means it may be difficult to find buyers for large-sized units that cost S$1 million and above.
Analysts said this limits how much developers can raise their prices, and house hunters with tighter budgets may simply exit the market.
As for authorities' decision to impose a resale levy on second-time applicants for EC units, analysts believe it may discourage them from upgrading.
Nicholas Mak, research head at SLP International, said: “The resale levy would also in a way increase the implied prices for some HDB upgraders of the EC unit.
“For example, if a HDB upgrader currently owns a 5-room HDB flat, he will have to pay a resale levy of about S$45,000, and this is equivalent to about S$35 to S$40 per square foot for his new EC unit.
“So in a way, he would have to pay an implied higher price for the EC unit. And this may actually discourage some buyers."
EC shrink size faster than PC?
No point having ec. Scrap it.
princess_morbucks
11-12-13, 07:38
No point having ec. Scrap it.
Then what will happen to the sandwiched class?
Then what will happen to the sandwiched class?
Don't need sandwich class, garment let them buy hdb, and garment will be happy to see them preserve their cash in the bank , and 10 years later they got $ then buy the 99 years or freehold condo,
princess_morbucks
11-12-13, 08:49
Don't need sandwich class, garment let them buy hdb, and garment will be happy to see them preserve their cash in the bank , and 10 years later they got $ then buy the 99 years or freehold condo,
Meaning that HDB should increase the cap of $10K for BTO ?
Meaning that HDB should increase the cap of $10K for BTO ?
normal bto - cap 10k.
premium flat - cap 12k.
dun nid ec which serve no purpose yet create another set of problems!
clemdale24
11-12-13, 10:23
Then what will happen to the sandwiched class?
how do u define sandwiched class? to me all these terms are so arbitrary...
how do u define sandwiched class? to me all these terms are so arbitrary...
in sg, sandwiched class refers to those who dun earn little to be considered poor, but hv ambitious dreams of staying in pte.
I suppose those wif pay range $3-5k?
I tink if can earn 5k each dun nid govt subsidy liao la ...
in sg, sandwiched class refers to those who dun earn little to be considered poor, but hv ambitious dreams of staying in pte.
I suppose those wif pay range $3-5k?
I tink if can earn 5k each dun nid govt subsidy liao la ...
I will define sandwiched class as those who have household income <$12k but greater than $10k. This group do not qualify for BTO.
I will define sandwiched class as those who have household income <$12k but greater than $10k. This group do not qualify for BTO.
so if household income is 9k is considered wat class?
princess_morbucks
11-12-13, 10:54
how do u define sandwiched class? to me all these terms are so arbitrary...
I will define sandwiched class as those who have household income <$12k but greater than $10k. This group do not qualify for BTO.
Yes, I agree with you.
Sandwich class earn between $10K to $12K.
Cannot buy BTO.
Can only buy EC or private.
When someone buy BTO, there is always a high chance that they will sell or rent it out after MOP, to upgrade to PC.
For EC, most likely people will live there for long term because it has got facilities and its also the cheapest form of PC for own stay.
so if household income is 9k is considered wat class?
A nice name will be non-sandwiched class. Simply becos they have the BTO option which is a subsidized housing from HDB. Anyone else >$12k are considered the "Government do not give a damn Class".
A nice name will be non-sandwiched class. Simply becos they have the BTO option which is a subsidized housing from HDB. Anyone else >$12k are considered the "Government do not give a damn Class".
non sandwiched sounds richer den sandwiched class leh ...
And not nice name would be?
Economy class?
And not nice name would be?
Economy class?
many rich people travel on economy class ok. dont pray pray..
And not nice name would be?
Economy class?
that will be Low Class
And not nice name would be?
Economy class?
not so kiao class? :D
And not nice name would be?
Economy class?
An ok name to use will be Subsidized Class?
that will be Low Class
wei, poor doesn't mean one is low class ok! :tsk-tsk:
princess_morbucks
11-12-13, 13:04
Actually it will be better not to have ceiling cap for BTO.
But if earn >$10k (at the point of purchase) and if buy BTO then must sell BTO (after MOP) if wanna buy private.
If that's the case, then it gives all Singaporeans (poor or rich) a chance to buy a BTO.
wei, poor doesn't mean one is low class ok! :tsk-tsk:
http://en.wikipedia.org/wiki/Lower-class :tongue3:
http://en.wikipedia.org/wiki/Lower-class :tongue3:
hello!!!!
there is a big diff in low class vs lower class leh! :axekiller:
hello!!!!
there is a big diff in low class vs lower class leh! :axekiller::tongue3::tongue3::tongue3:
Actually it will be better not to have ceiling cap for BTO.
But if earn >$10k (at the point of purchase) and if buy BTO then must sell BTO (after MOP) if wanna buy private.
If that's the case, then it gives all Singaporeans (poor or rich) a chance to buy a BTO.
It is easier to implement by tiering the subsidies and be transparent on the non-subsidized prices of BTO. If <$5k, allow max subsidy. If <$7.5k, 50% subsidy. If >$10k, zero subsidy. Other rules remains (e.g first timer etc).
many rich people travel on economy class ok. dont pray pray..
And also wear short pants, take bus and MRT to see showflats. Usually carry a mobile phone or tablet with fast data plans.
DBSS was eliminated, this whole new scheme of things for EC is going to distinguish itself from condominiums clearly.
Compact mickey mouse units in the form of ECs will arrive, potentially killing current private mickey mouse units in time to come.
Will big quantum or big size units come back in vogue due to rarity?
This is government's strategy to cool the psf prices for MM units.
Interesting gameplay......:D
princess_morbucks
11-12-13, 18:42
DBSS was eliminated, this whole new scheme of things for EC is going to distinguish itself from condominiums clearly.
Compact mickey mouse units in the form of ECs will arrive, potentially killing current private mickey mouse units in time to come.
Will big quantum or big size units come back in vogue due to rarity?
This is government's strategy to cool the psf prices for MM units.
Interesting gameplay......:D
I don't think there will be mm EC.
The demand will not be there.
In order to buy and new EC, you need to form a family nucleus.
The MOP for new EC is presently 5 years.
Do you think a young couple would want to buy an mm EC?
What if kids come along within the 5 year period?
There will be hardly any space for them.
Hence I don't think pte MM units will be at risk, cos there is simply little or no reason why mm EC should be built.
Good house
11-12-13, 19:16
Whatever all the towkay here want to build, make sure we have our own Singapore style compare to other asian city. We hv to be a bit diff from others.
Don`t forget we do not hv four season, no heating issue and most important we have no countryside to escape to during weekend. So please don`t build the apartment too small. If I may quote...hv a little bit of socialist fabric in the capitalism mindset else nobody will win when things get too hot.....take it as National service can
Just my 2 cents worth :o;)
My take on this is that miniaturisation is a trend that will cut across all asset classes especially if the only differentiating factor is affordability and eligibility.
As to whether mm EC will kill mm PC, we dont see normal EC killing normal PC so why should the mm ones.
What I meant is some of the buyers for PC MM might instead buy into EC Compact units.
Quantum remain affordable to attract buyers but units shrink with higher psf to deliver better returns for developers.
Those turn off by these EC measures will look into affordable PCs in OCR instead, providing support to OCR prices.
ec developers can build shoebox mah?
When someone buy BTO, there is always a high chance that they will sell or rent it out after MOP, to upgrade to PC.
For EC, most likely people will live there for long term because it has got facilities and its also the cheapest form of PC for own stay.
I have been staying at my bto for > 13 years. I am still staying!
Most will stay.
Good house
11-12-13, 20:27
Actually Mickey Mouse house is quite big in Disneyland:D.
Please build affordable Mickey Mouse hse..sure people will buy:D:tongue3:
Good house
11-12-13, 20:33
ec developers can build shoebox mah?
What is the diff between MM and shoebox unit bro?
rymccondo77
11-12-13, 20:35
Quite a number of the recently launched ECs do not have 2 bedroom units.
With the new measures, we could see the return of more 2 bedroom units in ECs.
Don't think there will be MM units in ECs due to the requirement of family nucleus as pointed out in one of the earlier postings.
Good house
11-12-13, 20:42
Quite a number of the recently launched ECs do not have 2 bedroom units.
With the new measures, we could see the return of more 2 bedroom units in ECs.
Don't think there will be MM units in ECs due to the requirement of family nucleus as pointed out in one of the earlier postings.
Like that I can "put my heart down liao". We need to preserve the family nucleus.
All the Towkay and Lau Da, please put more socialist fabric inside the capitalist system...thank u you :D.. we want long long nine nine and Big Big:p
Location wise most new EC are in OCR and they are a distance away from amenities and MRT. Can't see any upside after MOP, those old one just turn privatise are not selling on par with the PC next door.
If size gonna reduce it will not be attractive to family looking for own stay, coupe with no kid may like it.
Quite a number of the recently launched ECs do not have 2 bedroom units.
With the new measures, we could see the return of more 2 bedroom units in ECs.
Don't think there will be MM units in ECs due to the requirement of family nucleus as pointed out in one of the earlier postings.
2 bedders at 5xx sqft oso mm leh.
All ec will reduce by 100sqft in size. Facilities in ec are much better than PC i think they should reduce it to basic facilities.
u also seldom see ec exceeding 500units in a site area, in future we might find 600 to 700units into a plot of land.
All ec will reduce by 100sqft in size. Facilities in ec are much better than PC i think they should reduce it to basic facilities.
u also seldom see ec exceeding 700units in a site area, in future we might find 800 to 1000units into a plot of land.
figures changed.
rymccondo77
11-12-13, 23:55
2 bedders at 5xx sqft oso mm leh.
I could be wrong but I doubt if the size of an EC 2 bedder will be less than 600 sqft. I think it will be around 700 to 800 sqft.
For ECs (those launched from a few years ago) that have 2 bedders, sizes were around 800 sqft.
It's actually a simple logic.
HK people says houses too small to make babies.
Singapore is no house to make babies.
By making EC smaller and compact in the form of 2 bedders will encourage commitment to settle down.
Increase probability of a man and a woman in the same house, the probability of 'accidents' will increase, i.e. babies......
Babies are usually a result of accidents than planned phenomenons. :)
I could be wrong but I doubt if the size of an EC 2 bedder will be less than 600 sqft. I think it will be around 700 to 800 sqft.
For ECs (those launched from a few years ago) that have 2 bedders, sizes were around 800 sqft.
In the steps of HK-like lifestyle, small MM or family units are built with lots of amenities around, some even 24/7 like clinic, grocery, minimart. The home is more a place to rest & sleep for the day while all family activities dining, shopping, studying, leisure, recreation are often out of home. It is already happening in some projects. Spacious units (even HDB) will be luxury items come 7M population.
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