Frequent Asked Questions on Executive Condominium
Section C： General FAQs
1. How soon will I know whether my
application to purchase an EC has been approved by HDB?
current normal processing time to receive a feedback from HDB is within a month.
be informed by the developer / booking agent if your application has been approved. You will be notified thru your booking agent if additional supporting
documents need to be submitted.
cycle of review and approval takes about a month, it is important to submit the required documentations first
time right to avoid anxiety/delay.
2. We are
eligible for EC, should we buy an EC or a private condominium?
Read my thoughts on whether to buy a BTO, EC or private condo.
Between EC and private condo, EC would be a better choice. For the same budget, you will
be able to afford a bigger EC unit than a private condo. For 1st timer, t
he ‘cherry’ is there for you to pick, make use of the opportunity when you are still eligible to buy an
There has been arguments that private condo is a better choice because there is no MOP requirement
and you can get a bigger mortgage loan to buy a condo than an EC. These are true but IMHO, 5
years is not a long wait and in current market condition, why take on more debt when you can avoid
Private condo would be choice if there is no EC in the vicinity that you like to setup your
3. I am a current EC owner. What are my options after the
your MOP is met, the available options are:
to live in the EC unit.
b) Rent out
the whole EC unit.
c) Sell off
the EC unit.
another residential property.
· If it’s
a HDB resale unit, you have to sell off your current EC unit.
· If it’s
a private property, you don’t have to sell off your current EC unit.
· If you
still eligible and want to purchase another new HDB BTO/EC unit, you must sell off our current unit first,
wait for 30 months to lapse before you can apply for the next unit. In addition, the resale levy of $50,000
needs to be paid.
When and where is the next new EC launch?
find out the next new launch from the ‘Upcoming EC’ section under the ‘List of EC’ tab. .
check where is the next EC launch; click on the respective 'Address' hyperlink.
From the same document, add 15 months to the site award date to get an estimation of the launch
date. In general, premarketing activities will start about 2-3 months ahead of the estimated launch
other way simplest way is to pre-register your interest with me.
I will keep you posted again nearer to the launch date.
For 2nd timer applicant, you may want to take note that
there are 5 more new launches (3 in Punggol/Sengkang, 1 each in Woodland and Jurong) before resale
I have done my IPA and there are few EC projects and units that are within my budget. Should I wait for the new
that is coming up or just go ahead and choose from the
available units since it will TOP earlier
You have your answer if you are able to proritise your needs with regards to your preferred location, amenities
around, desired unit size, the unit orientation/facing, layout functionality, the project completion timing
While new launch will offer you a better choice of units, there are 2 salient points
a) The wait for new launch may be a few months but the TOP difference may be 1 to 2 years.
b) With the 30% MSR impacting home mortgage, new launch EC unit is likely to be smaller in
In current marlet situation, will the new upcoming launch be more expensive than the existing
be demand and supply that determines pricing trend. Even if
EC demand stay flats, prices will edge up steadily over time. Pricing will head south
if there is a major shock to the economy (whether internal or external) or new rules/regulations
that affect demand.
Fundamentally, there is
a positive correlation between the land bid price and selling price. With
land bid price,
increasing construction cost, it
is not wrong to assume that the prices of new
upcoming launches will be more expensive in
a steady market condition.
to the current market in 2Q14,
Since the implementation of the 30% MSR ruling in August 2013, potential buyers are finding it difficult to finance
EC units that are priced 1 million and above.
To counter this situation, EC developer is more likely to build more 2 and 3 bedroom units, and less 4 and
5 bedroom units. And to keep the price quantum and loan margin affordable, the size of each EC unit is also
likely to get smaller. Its a win-win situation for both,
o the consumer, prices will appear cheaper because the quantum is lower. On the other side, the developer is
able to achieve a higher psf selling price.
to stay competitive, EC developer is likely to take a cut in their profit margin to maintain current new
launch pricing (about $800 psf) in spite of rising land bid, inflation and construction
I had an
existing flat that has not been sold. I already purchased an EC
unit, am now waiting for TOP/key collection.
It is better to sell now or wait till key
You have 6 months to sell your existing flat after you collect the key to your new EC unit. Most of
us do not want to step out of our comfort zone and will sell their existing flat only after collecting the
key to the new unit.
From 2011 till 2013, I had been advising my clients to sell their existing flat no
later than 2013, even if they have not collected the key to their new EC unit. I foresee the abundance of resale unit coming into the market
when the large supplies of BTO/DBSS/EC projects get completed in 2014/15.
Is it the right time to sell now? From my crystal
ball, IMHO, the current resale market will get worse before it turns for the better and 2015 is likely to be
the turning point.
Why 2015? I do believe that the Government is keeping an eye on the next general election (latest
by 2016) and the some of the ‘cooling’ measures can be relaxed/turned off and becomes ‘stimulating’
So for those who will receive their key in 2014 and early 2015, it may be better to start marketing
your unit as soon as possible. For those receiving their key in 2016 and thereafter, it may be better to wait for the election
outcome and before deciding whether to sell before key collection.
The above expressed are my crystal ball view in 2Q14, I shall not
be held responsible for any financial loss as a result of my recommenation. The final call as
to when to sell is still yours to made.
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