As you could see, Singapore has actually been getting more exciting and some attention because of its upcoming launches namely The Panorama, the Boardwalk Residences, Bellewaters executive condominium and Nine Residences. The recent launch of Alex Residences, Liv on Wilkie and Onze @ Tanjong Pagar made people, both foreign and resident purchasers; crave for more and more locations that are just in walking distance to business MRTs and hub. This year the MND or Ministry of National Development of Singapore implemented novel measures, which affected entire executive condominium market. Aim of regulation is to create more sustainable and stable market for executive condominium or EC.
- Cancellation fee rate
The rate of ECs cancellation fee is now decreased to 5%. It actually has been decreased from 20% to 5%. Purchasers who decide not to push with purchase after signing Purchase & Sale agreement will find relief with new cancellation fee. This makes executive condominium cancellation fee in much competitive position against HDB BTO units, which is same to 2nd timer applicants paying a resale tax. Regulation comprises tenders that weren’t closed yet.
- Introducing 30% cap on Mortgage Servicing Ratio
Singapore would like to implement 30% cap on MSR. This is applicable just to units purchased directly from condo developers. This is a huge change from present practice where there is actually no Mortgage Servicing Ratio cap on all executive condominium purchases. Trend is making EC in line with current practice of HDB flats. Implementation is however granted to those with choice to Purchase made after 10th of December.
- Effect on possible purchasers & executive condominium market
Average price rose to about 0.5% m-o-m and 5.9% y-o-y. The affected group on this current change is possible buyer. This means that cap is going to limit monthly income utilize to service the credit. With this condition, the purchaser has option to whether pay a higher equity or look for a cheap unit.
27 Aug 2014