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EC development will not be taken over by HDB, Minister confirms

by • January 10, 2020 • ECComments (0)92

Minister for National Development said in Parliament on Jan 6 that HDB will not take over EC development. The Minister, Lawrence Wong, was responding to a question asking, “whether HDB will review the Executive Condominium (EC) scheme to take over the full development of ECs instead of opening land sales to private developers so as to have better control over the pricing of ECs to meet the aspiration needs of Singaporeans.”

ec developmentIn responding to the question of EC development, Mr Wong said:

“The Executive Condominium (EC) Housing Scheme was introduced to provide an affordable option for higher-income Singaporeans who aspire to own private housing. That is why ECs offer similar design features and facilities as private condominiums, and are treated as strata-titled private housing after ten years. Given this objective, it would not be possible for HDB to take over the development of ECs.

The government has put in place various measures to ensure that ECs remain affordable. For example, initial eligibility and ownership restrictions, such as an income ceiling and a minimum occupation period, are imposed on EC buyers. This helps to reduce the land cost of the EC projects, as well as their selling price. Currently, the prices of ECs are about 25% cheaper than private condominiums of similar size and location. EC buyers also benefit from the CPF Housing Grant when making their purchase.

We will continue to monitor the situation, and ensure that the EC Housing Scheme serves its original intent, and meets the aspirations and needs of potential home-buyers.

There are certain eligibility conditions to buy a new Executive Condominium (EC) from a developer.

Overview of eligibility conditions

Family nucleus You will need to qualify for the EC under one of these eligibility schemes:

  • Public Scheme
  • Fiancé/Fiancée Scheme
  • Orphans Scheme
  • Joint Singles Scheme
Citizenship
  • You must be a Singapore Citizen
  • At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident
  • All singles must be Singapore Citizens if applying under the Joint Singles Scheme
Age
  • At least 21 years old
  • At least 35 years old, if applying under the Joint Singles Scheme
Income ceiling Your household income must not exceed $16,000 income ceiling.
Property ownership
  • You do not own other property overseas or locally, or have not disposed of any within the last 30 months
  • You have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received CPF Housing Grant thus far (Applicable for Option to Purchase granted by the property developer on or after 11 September 2019. For Option to Purchase granted before 11 September 2019, income ceiling is $14,000)

You can apply for a EC development under the following schemes:

Public Scheme

You form a family nucleus with any of the following:

  • Spouse, and children (if any)
  • Parents, and siblings (if any)
  • Children under your legal custody, care and control (if widowed/divorced)

If the care and control of your children under the age of 21 is shared with your ex-spouse, you must obtain his/her written agreement before you can list your children in a flat application.

No change of people listed in the application

Applications under this scheme are only valid if there are no changes to the people listed in the application. This means that in the case of a break-up, you are not allowed to subsequently include the name(s) of a new fiancé/fiancée or your parents in the application, even if your ex-fiance/fiancée agrees.

If applying for a dual-key EC as a multi-generation family

A multi-generation family is any of the following:

  • Married/engaged couple and parent(s)/grandparent(s)
  • Widowed/divorced with children under legal custody, care and control and parent(s)/ grandparent(s)

If the care and control of your children under the age of 21 is shared with your ex-spouse, you must obtain his/her written agreement before you can list your children in a flat application.

Fiancé/Fiancée Scheme

You form a family nucleus with your spouse-to-be.

Submission of marriage certificate

Under this scheme, you need to submit a photocopy of your marriage certificate to the developer within 3 months of collecting your keys to the EC unit.

Orphans Scheme

You and your siblings (those applying) are orphans and single, i.e. unmarried, divorced, or widowed:

  • All of the siblings that are single must be listed in the same application
  • At least 1 of the deceased parents was a Singapore Citizen or Singapore Permanent Resident

Please note that under the Orphans Scheme, siblings are not allowed to buy or rent flats separately.

Joint Singles Scheme

You and up to 3 other co-applicants, and all of you are:

  • Single (unmarried, divorced, or widowed)
  • Singapore Citizens
  • At least 35 years old
  • Applying jointly as co-applicants

The CPF Housing Grant for singles is not available when buying a unit under EC development.

Your average gross monthly household income in buying a unit under EC development must not exceed $16,000.

First-timer applicant

First-timers enjoy privileges and priority in flat allocation.

Yours will be treated as a first-timer application if you and any of the other listed owners and essential occupiers meet the following criteria:

  • Not the owner of a flat bought from HDB, or an EC/ DBSS flat bought from a developer
  • Not sold a flat bought from HDB, or an EC/ DBSS flat bought from a developer
  • Not received any CPF Housing Grant for the purchase of an HDB resale flat
  • Not taken any form of housing subsidy (e.g. benefitted under the Selective En bloc Redevelopment Scheme (SERS) or HUDC estate privatisation)
If you are a second-timer and your spouse/ spouse-to-be is a first-timer, you will be glad to know that you and your spouse/ spouse-to-be will enjoy first-timer privileges and priority as a couple.

Second-timer applicant

Yours will be treated as a second-timer application if any of the following applies to you or any of the other listed owners and essential occupiers:
  • Have owned or sold any of the following:
    • HDB flat bought from HDB
    • Resale flat bought using a CPF Housing Grant
    • EC/ DBSS flat bought from the developer
  • Once taken some form of housing subsidy (e.g. benefitted under the Selective En bloc Redevelopment Scheme (SERS), HUDC estate privatisation)
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