Is Executive Condo (EC) Still a Good Buy?
For a private condo, the developer can keep some units to sell at a higher price in the future.
But for EC, all units must be for sale on balloting day. The developer cannot reserve EC units.
There are 2 types of balloting:
1. Electronic balloting. Everyone has equal priority to choose their unit.
2. Traditional balloting. Priority given to first-time buyers.
It is free to ballot.
Case study: North Gaia in Yishun.
27% sold during the launch.
Poor take out rate.
Case study: The Criterion
Less than 20% sold
Case Study: Northwave EC
First day sales: 20 units sold.
Poor take out rate.
Case study: Parc Life
poor sales
For EC, your loan is under MSR ( Mortgage Servicing Ratio) It allows you to use up to 30% of your salary for the loan.
Your monthly household income must not exceed $16K due to the income ceiling.
2nd time buyers of subsidized housing must pay a resale levy.
Regardless of situations, people still buy EC. Due to the fact that it is subsidized.
When there is demand, prices will go up.
While ECs may seem like a logical buy, buy something you can afford.
P.S. The above is a summary of the video.
