EC prices must reflect affordability of those eligible
FIRST, it was the $1.77 million penthouse unit at Heron Bay, an executive condominium (EC), which made headlines. Now, it is the $2.05 million presidential suite at CityLife@Tampines ("Tampines EC 'presidential suite' to be priced at $2.05m"; last Thursday).
Clearly, the objective behind the development of ECs has been forgotten.
They are meant for the so-called "sandwiched class", including couples whose combined monthly income of up to $12,000 places them beyond the ceiling for HDB eligibility.
These people are unlikely to be able to afford a $2.05 million home.
If they could afford it, they should be buying private property, instead of competing unnecessarily with those who are truly eligible for ECs and, hence, more deserving.
The Government should play an active and effective role in managing this situation.
Land cost for ECs is subsidised.
Hence, the Government should stipulate the parameters for development, for example, unit sizes, design, facilities and so on, so that the prices truly reflect the financial status and affordability of people who are eligible.
This was the case when the EC category was introduced.
The Government must ensure that this is continually upheld, and not lose sight of the fundamentals.