EC developers have flexibility in designing and pricing their units. But they must remember the policy intent of EC and the spirit of the EC policy. EC is to help Singaporean families earning within $12,000 per month acquire a condominium at below market rate. This is achieved through zoning and tendering out the land as specific for EC, thus allowing the developer to acquire it cheaper than private condominium land.
All EC applicants must therefore meet (a) the income criteria, as evidenced by payslips and/or income tax returns; and (b) the public housing subsidy criteria, i.e. not having already bought two subsidised flats before.
The recent media highlight on an EC penthouse supposedly sold for $1.77 mil has raised some eyebrows.
There is now another developer going to market a luxurious penthouse. I expect the developer to have done his calculations, to ensure that the unit will be affordable for the targeted EC applicants.
We provide EC developers with much flexibility, but they must be mindful that flexibility must be exercised in keeping with the intent and spirit of the EC policy.
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