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More cooling measures coming? Will they work? This is after SIX rounds of measures since 2009.....

The Straits Times
www.straitstimes.com
Published on Dec 29, 2012
Govt keeping close eye on ECs

By esther teo property reporter

THE National Development Ministry (MND) has warned that it is closely watching developments in the executive condominium (EC) segment and will consider further measures if needed.

It was responding to The Straits Times' queries on whether sky-high prices for some EC units at recent launches are of concern.

The latest focal point in the EC debate is a huge 4,349 sq ft "presidential suite" at 514-unit CityLife @ Tampines, which will be the first EC unit to eclipse the $2 million mark if sold at its launch today. The penthouse unit, with a roof terrace of about 1,600 sq ft, is priced at about $2.05 million.

Lately, many ECs, a public-private housing hybrid, have come with million-dollar price tags. Some large, luxurious units come with fancy designs such as private pools, rivalling private homes.

"Minister for National Development Khaw Boon Wan has recently blogged about his concerns that the EC developers should observe the intent and spirit of the EC housing scheme when marketing their projects," a spokesman said.

Industry players have raised suggestions such as imposing a minimum number of units to be built on an EC site - or a maximum size for an EC apartment.

Savills Singapore research head Alan Cheong said more measures are needed if developers overstep the limit. "We get this feeling that ECs are now going to buyers who can well afford a private home... I think developers should always bear in mind the social responsibility involved when it comes to ECs," he added.

International Property Advisor chief executive Ku Swee Yong said the authorities could consider caps on the price of an EC unit so they are "reasonably priced" for a household meeting the $12,000 monthly income ceiling for ECs.

"I think home buyers with a budget of more than $1.5 million should purchase private homes instead of depriving a genuine sandwich-class household of an EC unit," he noted.

Potential EC buyer Bernadette Chen, 34, who works in finance, wants a unit under $1.2 million. "The Government should make sure that ECs remain affordable for the middle-income."

esthert@sph.com.sg

Haha if a 12k income ceiling can afford a 2m apartment, what can the government do?

Looks like new cooling measure will be coming in (on Friday again?) for executive condominiums. Buy now or never! =P

it's too late, taxpayers has already subsided the $1.7m EC...

MND should revoke all these purchases...

(29-12-2012, 10:25 AM)brattzz Wrote: [ -> ]it's too late, taxpayers has already subsided the $1.7m EC...

It's too late to stop the buying of such units, but the gov can still tweak the tax for the subsequent re-sale, so as to claw back the unfair subsidy.

Currently, if one sells a EC & buys another EC or BTO HDB (30 mths later), he pays a flat $55k resale levy. This should be adjusted to more correctly reflect the "true" subsidy of his original unit. Similarly, other targeted seller stamp duty can be implemented to effect a similar claw-back.

It lives up to the government's REPUTATION of a fire fighter mentality...

What is the point of WARNING with words? Developers there to serve public interest? Time has shown again, if rules are set without enforcement, it will not work. A hard ruling, maximum size of unit, say 1500 sq ft, 4 bedrooms, will suffice. Implicitly the amount will be much more affordable.

When it comes to tax revenues, they are super efficient, world class. The rest from flood to train breakdown to industrial land to EC restrictions, it is all fire fighter approach... A world class team indeed... :-(

even the 'pay to use plastic bags at supermarket campaign' is getting nowhere after so many years..i think they scared many rich tai tai shopping there not happy?

affordability of public flats these days in the news refer to only 'new' public flats.

I would say the definition of "affordability" has changed radically over the years. In the past, it used to be that what was affordable needed to be fully funded by cash, and therefore anyone who wanted to buy anything would have to SAVE UP for the purchase.

Nowadays, you can use credit and leverage to ensure something is "affordable", but you pay only the installments and a ton of interest to the bank/finance company. Technically, this means that you are paying for something you cannot actually afford by using FUTURE money*.

This is what many couples and property investors are doing - using future money to pay for current enjoyment; all in the hopes that prices will (forever) rise and they can cash out even richer than before!

*I do not endorse this trend and do not think it is healthy at all!

(29-12-2012, 09:23 PM)Contrarian Wrote: [ -> ]It lives up to the government's REPUTATION of a fire fighter mentality...

What is the point of WARNING with words? Developers there to serve public interest? Time has shown again, if rules are set without enforcement, it will not work. A hard ruling, maximum size of unit, say 1500 sq ft, 4 bedrooms, will suffice. Implicitly the amount will be much more affordable.

When it comes to tax revenues, they are super efficient, world class. The rest from flood to train breakdown to industrial land to EC restrictions, it is all fire fighter approach... A world class team indeed... :-(

It was not too long ago when the complain was that Singapore is over-regulated. Personally I would prefer gahmen not to over-regulate. Set the guidelines and if things do not work, fine-tune.

Nothing wrong with being fire fighters, it is a noble profession. There will always be fire to fight. There are governments that fiddle while the country burns, so I am thankful that our gahmen is still fighting fire.

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(29-12-2012, 09:59 PM)pianist Wrote: [ -> ]even the 'pay to use plastic bags at supermarket campaign' is getting nowhere after so many years..i think they scared many rich tai tai shopping there not happy?

Rich tai tais do not shop at NTUC.

I have this theory. I think the developers this time made MND red-faced this time. However, as all policies are concerned, someone up there must have put his noble signature and approved the developer plan to build such big units. Therefore, the ministry bo pian has to give warning to avoid major negative press but next round of developers may not have such luxury as they tweak internally their loopholes.

But seriously, what is the difference between 2.05m and 2.02m?

Another thing, the people working in the finance better think hard whether Singapore can sustain te banking industry for 30 years. They may be still able to earn good salary for next few years, but when the exodus comes again with the next financial crisis, these people may need to scramble to India for their "expertise". It is ridiculous to know that RMs can earn 10k easily a month. Easy money come always easy money go.

a private banking RM easily earns >20k a month