More than 11,000 families bought Executive Condominiums: Khaw Boon Wan

[princess_morbucks]

SINGAPORE - More than 11,000 Singaporean families bought Executive Condominiums (ECs) from the fourth quarter of 2010 to the same period in 2013.


Get the full story from The Straits Times.

Minister for National Development Khaw Boon Wan revealed these figures in the following blog post:

The Executive Condominium (EC) Housing Scheme is designed to help Singaporeans (earning up to $12,000 per month) own a private condo at way below market price. This is achieved through several sales restrictions which are fully lifted after 10 years. The initial EC buyers enjoy a price advantage of about 30 per cent in many cases. This is a significant benefit. In addition, first-timer households will also enjoy a CPF Housing Grant.

Take-up for EC has been high, and we have ramped up supply to meet demand.

From 4Q2010 to 4Q2013, over 11,000 Singaporean families bought ECs. This is their general profile:

Most (86 per cent) were HDB dwellers.
Majority (55 per cent) were second-timer households, i.e. upgraders.
80 per cent earned $10,000 or below.
42 per cent are non-university graduates.
40 per cent were aged 34 years old and below, while 60 per cent are older.
83 per cent spent below $1 million on their purchase.
The income ceiling adjustments in 2011 saw the following shifts in the profile of EC buyers over a one-year period:

The proportion of second-timers rose from 43 per cent to 57 per cent.
Those aged between 35 and 44 increased from 35 per cent to 43 per cent.
I am glad that the EC scheme is helping Singaporeans from diverse backgrounds meet their aspirations for private housing. I will continue to make sure that the EC scheme stays on track, to serve the housing needs of Singaporeans.

- See more at: http://business.asiaone.com/property/news/more-11000-families-bought-executive-condominiums-khaw-boon-wan#sthash.5iS2gbqs.dpuf

[henryhk]

80% earn below 10k, tsk tsk, wen interest rate go up alot or wen economic slow down substantially, I see how these people survive!! Don't tink own pte property v Shiok!

[princess_morbucks]

80% earn below 10k, tsk tsk, wen interest rate go up alot or wen economic slow down substantially, I see how these people survive!! Don't tink own pte property v Shiok!

Last time before TDSR and MSR was introduced, they could just get maximum loan and later let their parents take care of it.

[Trevortan]

80% earn below 10k, tsk tsk, wen interest rate go up alot or wen economic slow down substantially, I see how these people survive!! Don't tink own pte property v Shiok!

haha bro, EC has income cap of 12k. It's normal to have most of those who buy EC below 10k per month income

[chestnut]

haha bro, EC has income cap of 12k. It's normal to have most of those who buy EC below 10k per month income

1. most have mum and/or dad to thank for assisting them

2. salary should not remain constant leh....

http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=361

http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=428

http://www.sbf.org.sg/download/docs/tradebiz/trade/04_NWCGuidelines_2013_2014with%20signatures.pdf


http://business.asiaone.com/news/singapore-companies-give-workers-45-pay-hikes-2014-two-surveys-show

[k00L]

80% earn below 10k, tsk tsk, wen interest rate go up alot or wen economic slow down substantially, I see how these people survive!! Don't tink own pte property v Shiok!

The upgraders should have +ve equity from sale of their HDBs.
The 1st timers will be stretched and needs to have dual incomes to sustain

[Arcachon]

More than 11,000 Singaporean families bought Executive Condominiums (ECs) from the fourth quarter of 2010 to the same period in 2013.

Looking at the other side of the coin, 11,000 Singaporean families Miss The Boat (MTB) since 2010.

In June 2006, Southbank 2 Bedroom cost SGD 535,000.

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From 4Q2010 to 4Q2013, over 11,000 Singaporean families bought ECs. This is their general profile:

Most (86 per cent) were HDB dwellers.
Majority (55 per cent) were second-timer households, i.e. upgraders.
80 per cent earned $10,000 or below.
42 per cent are non-university graduates.
40 per cent were aged 34 years old and below, while 60 per cent are older.
83 per cent spent below $1 million on their purchase.
The income ceiling adjustments in 2011 saw the following shifts in the profile of EC buyers over a one-year period:

The proportion of second-timers rose from 43 per cent to 57 per cent.
Those aged between 35 and 44 increased from 35 per cent to 43 per cent.

[Arcachon]

Prior to 1971, there was no resale market for owner-occupied HDB dwellings. HDB required
owners who wished to sell their flats to return them to the HDB at the original purchase price in
addition to the depreciated cost of improvements. In 1971, a resale market was created when the HDB
allowed owners who had resided in their flats for a minimum of three years to sell their flats at market
prices to buyers of their choice who satisfied the HDB eligibility requirements for homeownership.
However, these households were debarred from applying for public housing for a year. The period of
debarment was increased to two and a half years in 1975. The minimum occupancy period before
resale was increased to five years in 1973 and has remained in place since.

https://www.kdevelopedia.org/mnt/idas/asset/2013/11/19/DOC/PDF/04201311190129109073270.pdf

[Arcachon]

https://fbcdn-sphotos-f-a.akamaihd.net/hphotos-ak-prn2/t31.0-8/10295200_10202534414934539_7904395151276273621_o.jpg

Some analysts have argued that the
Singapore residential market will see a correction
in 2014/2015 due to the large amount of stock
expected to complete over that period. An
average of 50,000 housing units (public and
private) per year is expected be ready in 2014
and 2015 – equivalent to 2.5 times the average
yearly stock completed since 2001 or just about
4.0% of the current housing stock of 1.1 million.
Comparatively, this is a quarter of the peak seen in
2003 when over 68,000 housing units were added
to the stock.
In our opinion, which is based on three
fundamental drivers, the residential market will not
contract as a result of this growth. First, over the
past decade, the Singapore residential market has
seen hardly any correction based on stock level
alone; despite the large supply that came in 1998,
island-wide property prices remain fairly stable.
Second, the growth in population over the past
few years has outpaced that in physical housing
stock, suggesting that the overall size of national
households (including all residents regardless of
status) has been rising. Thus, the gap between
the short- and long-term balances of housing
stock is currently wider than in 1998, suggesting
that the residual demand backlog is likely to help
keep prices steady. Finally, immigration is unlikely
to stop, as articulated by Prime Minister Lee in
his National Day Rally speech. In our estimate,
immigration growth this year is likely be slightly
lower than in 2010, at about 2-3%, to support the
country’s fundamental economic growth. Demand
for housing is therefore likely to remain fairly stable
and support the injection of new stock over the
next few years. Undoubtedly, the current increase
in global economic uncertainty is likely to dampen
sentiment here, resulting in short-term fluctuations
in demand and prices but, overall, the mid- to
longer-term outlook remains stable on the back of
these fundamentals.

http://www.joneslanglasalle.eu/ResearchLevel1/SG-Residential-NewStock-Sep2011.pdf

[minority]

report is 2011 isn't it out dated?

[reporter2]

http://www.businesstimes.com.sg/archive/tuesday/specials/property/exec-condos-helping-people-meet-their-housing-aspirations-khaw-20140425

Published April 25, 2014

Exec condos helping people meet their housing aspirations: Khaw

Some 86% of EC buyers in the last three years are HDB dwellers, he says

By Lynette Khoo

[email protected] @LynetteKhooBT


[SINGAPORE] Most buyers of executive condominiums (ECs) in the past three years are HDB dwellers, suggesting that the EC scheme is still helping Singaporeans to meet their aspirations for private housing, said Minister for National Development Khaw Boon Wan.

In a blog post yesterday, Mr Khaw revealed that 11,000 Singaporean families bought ECs from Q4 2010 to Q4 2013.

About 86 per cent of the buyers are HDB dwellers and 55 per cent are second-timer households. Some 80 per cent earned $10,000 or less.

ECs are public-private hybrid built by private developers to allow eligible families to own a private condo at way below market price. First-timer households can enjoy a CPF Housing Grant and sales restrictions are fully lifted after 10 years.

Since the income ceiling for ECs was raised from $10,000 to $12,000 in 2011, there was a shift in profile of EC buyers over a one-year period, Mr Khaw observed.

The proportion of second-timers rose from 43 per cent to 57 per cent and those aged between 35 and 44 increased from 35 per cent to 43 per cent. "I will continue to make sure that the EC scheme stays on track, to serve the housing needs of Singaporeans," Mr Khaw said.

Recent analysis of caveats by property consultants suggests that the proportion of private condos bought by HDB dwellers has increased gradually.

In the first quarter, about 45 per cent of all buyers of private condos have HDB addresses, up from 38 per cent in the same period in 2011. A higher proportion of these buyers with HDB addresses are going for smaller units of less than 800 sq ft.

Given the muted market conditions, developers are downsizing their units to make the overall price quantum of private condominiums more affordable for buyers, DTZ had said.

[reporter2]

http://www.straitstimes.com/archive/friday/premium/top-the-news/story/ec-scheme-has-helped-citizens-fulfil-dreams-private-housing-20140425

EC scheme has helped citizens 'fulfil dreams of private housing'

80% of buyers earned under $10,000, scheme to stay on track, says Khaw

Published on Apr 25, 2014 1:21 AM

By Melissa Tan


THE executive condominium (EC) scheme has helped Singaporeans from diverse backgrounds get into the private housing market, National Development Minister Khaw Boon Wan said yesterday.

ECs are a hybrid of public and private housing designed to cater to a "sandwiched class" of buyers who might not qualify for public housing but find private property beyond their reach.

Giving more details on the profile of these buyers in a blog post, Mr Khaw pointed out that 80 per cent of EC buyers earned under $10,000 a month.

Also, 83 per cent spent under $1 million on their unit, he said. The figures were based on the more than 11,000 Singaporean families who bought an EC from October 2010 to last December.

"I am glad that the EC scheme is helping Singaporeans from diverse backgrounds meet their aspirations for private housing," Mr Khaw wrote on his blog.

He noted that the EC scheme, which is meant to help Singaporeans own a private condo at below market price, has seen a high take-up. First-timers in many cases enjoy a price advantage of about 30 per cent, he added.

However, consultants warned yesterday that although the total prices of EC units may stay affordable, developers may feel pressure to build them smaller.

"As long as the Government maintains the income ceiling, most buyers can probably afford a unit that's just shy of $1 million," said SLP International research head Nicholas Mak. EC developers may reduce unit sizes by as much as 10 per cent to keep the total prices affordable, he said.

GPS Alliance chief Jeffrey Hong noted that developers likely cannot lower their per sq ft (psf) prices by much, given relatively high land and construction costs.

The household monthly income ceiling for EC buyers was raised from $10,000 to $12,000 in 2011. In the 12 months after that shift, the proportion of second-time buyers rose from 43 per cent to 57 per cent, Mr Khaw said.

The proportion of buyers aged between 35 and 44 also grew from 35 per cent to 43 per cent.

Of the more than 11,000 families, 86 per cent were Housing Board dwellers and 55 per cent were second-time home buyers, he said. Also, 42 per cent were not university graduates.

He added that he would "continue to make sure the EC scheme stays on track, to serve the housing needs of Singaporeans".

A year ago, Mr Khaw had hinted at an Our Singapore Conversation dialogue session that the EC scheme could be changed. He had said last April that EC owners make more profit upon resale than the average flat owner, citing the buoyant property market at that time. The private property market has since weakened after home loan curbslast June.

[email protected]