The Government will implement three measures in a bid to bring the framework for executive condominums (ECs) more in line with that of public housing as well as to support a stable EC market.
First, the cancellation fees for ECs will be cut from 20 per cent of the purchase price, to 5 per cent, in line with that of Housing Board Build-to-Order flats. The new rule will apply to land sales launched on or after Monday, including those where tenders have not closed.
Next, second-timer applicants who buy EC units directly from property developers will be required to pay a resale levy, similar to second-timers purchasing BTOs. The new requirement will be applied to EC land sales which are launched on or after Monday, including those where the tenders have not closed.
Finally, the Monetary Authority of Singapore will cap the Mortgage Servicing Ratio for housing loans granted by financial institutions for EC units bought directly from property developers at 30 per cent of a borrower's gross monthly income. This is in line with earlier measures introduced by HDB and MAS to encourage financial prudence among those buying public housing and discourage EC buyers from over-committing.
The 30 per cent MSR cap will apply to EC purchases where the Option to Purchase is granted on or after Tuesday.
The changes come following MND's review of the EC scheme, taking into account feedback from the Our Singapore Conversation (OSC) on Housing, the ministry said in a release issued Monday evening.