New Canberra EC Launch :: Eligibility Guide

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HDB Eligibility Guide for the new North Gaia EC Launch

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Since North Gaia is an executive condo, HDB’s eligibility criteria (set out below) applies for booking a unit at this new EC launch. If you would like assistance in checking your eligibility, please email us here.

Source: HDB website (www.hdb.gov.sg)

Citizenship
  • The main applicant must be a Singapore Citizen
  • Application must include at least one other Singapore Citizen or a Permanent Resident

Age
  • Applicants must be at least 21 years old when applying for this new North Gaia EC
  • Both applicants under the Joint Singles Scheme must be at least 35 years old

Family Nucleus

Applicants must form a family nucleus under one of the schemes here:

  • Public Scheme
    You (the main applicant) and;
    * Your spouse, and children (if any)
    * Your parents, and siblings (if any)
    * Your children under your custody (if you are widowed or divorced)

  • Fiancee/Fiance Scheme
    You (the main applicant) and your fiancee/fiance

  • Orphan Scheme
    You (the main applicant) and;
    * Your unmarried brothers/sisters, or
    * Another unrelated single orphan

  • Joint Singles Scheme
    You (the main applicant) and another single person

Income Ceiling
  • Your monthly combined household income cannot be more than SGD$14,000

 

Requirements for Undischarged Bankrupts

Undischarged bankrupts need to seek the Official Assignee (OA)’s consent to apply for the new EC. However, they need not seek the OA’s approval for inclusion as an occupier.
 

Ownership of Private Property

You, your spouse, and any occupiers and their spouses listed in this application, must not own or have divested yourself of, or have any share or part in any private flat, condo, house, building or land (including overseas property).
* Within 30 months before the application date, and
* Between application date and date of taking possession of this new North Gaia EC.
 

Owners/Ex-owners of EC units / DBSS flats / HDB flats

Each Singaporean household can buy the following housing types only twice:
* a flat directly from HDB;
* a resale flat with the CPF Housing Grant (this only applies to 1st timers);
* a new DBSS flat;
* a new Executive Condominium from a developer.

If you have previously bought 2 such units, you cannot apply for, or be listed as an essential occupier in an application for this new EC launch.
 

What are 1st timer Applicants

You, any co-applicants, and any essential occupiers included in your application for this new North Gaia EC launch, have NEVER:
* Bought a flat directly from HDB, or Executive Condo or DBSS unit from developer
* Sold a flat bought directly from HDB, or EC or DBSS flat bought from developer
* Obtained the CPF Housing Grant for the purchase of a HDB resale flat
* Received other forms of housing subsidies (eg. privatisation of HUDC estate, SERS, etc)

70% of the units will be reserved for first-timers during the initial period of this new EC launch.
 

What are 2nd timer Applicants

You, or essential family members in your application, have owned/sold or are currently owners of:
* A HDB flat that was bought directly from HDB, or
* A resale flat that was bought with a CPF Housing Grant, or
* A DBSS flat or an EC bought directly from a developer, or
* Have received other forms of housing subsidy (eg. privatisation of HUDC estate, SERS, etc.)

2nd timers buying North Gaia EC are required to pay a Resale Levy. For more info on the resale levy, see this (opens in new window).
 

Existing Owners or Ex-Owners Of

* A flat bought directly from HDB
* A DBSS flat bought from a developer
* A resale flat bought with a CPF Housing Grant

If you fall into any of the above categories, you may apply to buy a EC unit if at least 5 years (excluding any period of subletting the whole flat) has elapsed from the #date of taking possession of the subject flat to the date of application for this new EC.

# The date of taking possession refers to:
* Date of key collection, for flats bought direct from HDB
* Date of resale completion, for resale open market flats bought with a CPF Housing Grant
* Date of transfer at market value of flats bought with a CPF Housing Grant
* Date of key collection for EC/DBSS flats bought from a developer
 

Ex-owners of an Executive Condominium

Are you, your spouse, or any essential occupier listed in the new application an ex-owner of an EC unit bought direct from a developer? If so, you must wait at least 5 years from the date of taking possession of the earlier EC, before applying for this new North Gaia EC.

30-Month Period
In addition, you must wait out a 30-month period from the effective date of disposal (i.e., date of legal completion of the sale, evidenced by Notice of Transfer or such other documentary evidence as HDB may require) of that EC, before you can apply to buy a unit at this new EC launch.
 

Essential Occupiers

Anybody applying to buy the North Gaia EC, or to be listed as an occupier, must not currently be listed as an essential occupier of:
* An existing HDB flat bought directly from HDB,
* A DBSS flat bought under the CPF Housing Grant Scheme, or,
* A resale flat bought with a CPF Housing Grant

However, you may be eligible if you have lived in the existing flat for over 5 years from the #date of taking possession of the existing flat, to the date of application for this new EC.
 

Cancellation of Application After Booking a HDB Flat

If you have booked a new HDB flat and subsequently cancelled your booking, you must wait out a 1-year period from date of the cancellation, before you can apply for, or be listed as an essential occupier for this new North Gaia EC launch.
 

Divorcees

Within the 3 years from the date of divorce, only one party in the divorce can acquire any of the following housing units:

  • Flat bought direct from HDB
  • EC / DBSS flat bought direct from a developer
  • Resale flat bought from the open market with a CPF Housing Grant

If there is an existing matrimonial home that is one of the above, and that home is retained by your ex-spouse, you may apply to buy or be listed as an essential occupier in the EC, but only after 3 years from your divorce.

However, this 3-year wait out period will be waived if you are buying this new EC with a new spouse or with your parents.

If there is no matrimonial home, or if it was bought from the open market without a CPF Housing Grant, you may apply for this North Gaia EC launch after you obtain your ex-spouse’s consent not to own or be listed as an essential occupier in any of the above housing types within the 3-year wait out period from the date of your divorce.

The requirement for ex-spouse’s consent is waived if you are buying this new EC with a new spouse or with your parents, or if you are buying a resale flat from the open market without the CPF Housing Grant.

The requirement to seek your ex-spouse’s consent during the 3-year wait out period from the date of divorce is also waived if you meet the following conditions:

  • All your children are below 18 years old at the time of divorce; and
  • You have legal custody of all your children, and are also the only parent with care and control of all your children

 

Person Who Has Bought an EC/DBSS Flat with CPF Housing Grant

A person who bought an EC or DBSS flat with the CPF Housing Grant, but terminated the Sale & Purchase Agreement for that, may apply to buy a unit at this new North Gaia EC launch.

However, this is allowed on condition that a 5-year period has lapsed from termination date of the Sale & Purchase Agreement of the earlier EC or DBSS flat purchase, to the date of application for this new North Gaia EC.

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Source: HDB Website

Inz EC Launch

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Inz EC Launch . Are ECs better long-term investments than private condos?

The Business Times, 25 February 2016 edition reported that prices of ECs (Executive Condominiums) catch up with those of private condos after the initial 5-year minimum occupation period (MOP). And incidentally, even more so a further 5 years after that, 10 years after completion.

Historically, developer launch prices for ECs (such as at the Inz EC launch) is usually about 20% lower than for similarly located private condominiums. This is attributable to the sales restrictions imposed on ECs, and their attendant lower land costs.

The Visionaire EC . By Qingjian . Developer for Inz EC LaunchVisionaire EC by Qingjian . Developer for Inz EC Launch

But upon fulfilment of the 5-year MOP, and upon reaching the 10 year full privatisation stage, the gap narrows to 9% and 5% respectively.

At completion of the MOP, ECs can be sold to Singapore permanent residents or citizens, but not to foreigners. But once 10 years is over, they are designated as privatised and the restrictions are lifted, so they can be sold to foreigners too.

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The Inz EC Launch · A Sure Profit?

This does not mean that every EC is guaranteed a profit. Statistics show that it depends largely on the price of initial purchase and the time frame.

The study matched the data for 21 EC projects that had already been privatised, with their profits at the 5th and 10th years. They found that 13 projects made a loss at the 5th year. This was mainly because they were purchased during the boom time before the Asian financial crisis.

The other 8 ECs managed profits of over 20 per cent.

But upon privatisation (ie. at the 10th year), all the ECs were profitable. How much gains owners could get depended on the location, and supply of surrounding condominiums at the point of sale.

So based on historical sales data, 1st owners of privatised ECs could be sitting on quite significant gains.

Bellewoods EC by Qingjian . Developer for Inz Residence LaunchBellewoods EC by Qingjian . Developer for Inz Residence Launch

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The Inz EC Launch · A Trend

In addition, the study highlighted a trend that The Business Times had reported on as well, in an earlier article in January 2016. That report suggested that increasing vacancy rates of ECs were a sign of buyers treating their ECs as an investment. Young couples could be continuing to stay with their parents after marriage, while waiting for the value of their ECs to appreciate before selling.

The study also highlighted another finding that is perhaps not so surprising. Comparing ECs with private condos, if each is held for 10 years, ECs could be the better long-term investment. This is due to their higher internal rate of return as a result of their lower purchase prices.

Also after the 5 year MOP, ECs can be rented out. Their rentals are generally on par with similar private condos, thus giving a higher yield. This helps to defray their costs quite significantly.

The hypothetical study assumed a private condo of 1,100 sq ft bought for S$1.09 million, with a comparable EC costing S$875,000.

Its buyer is assumed to have a household income of S$14,000, and a loan of 80 per cent over 25 years at fixed interest of 2.5% pa.

Rents for both are assumed as S$3,000 monthly. To simplify the study, other costs such as stamp duties, taxes and maintenance fees were not considered.

At the 5th year, the private condo appeared the better buy, as the EC could not offset its mortgage payments with rental income, as it is barred from renting out the whole unit. This dampened its capital appreciation.

But once the rental restrictions were lifted, from the 6th year onwards, the EC quickly outperformed the private condo.

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The Inz EC Launch · Conclusion

Can it be concluded that this partially state-subsidised housing form for the “sandwiched class” buyer is no longer relevant? An author of the study said no.

“…given the significant price gap between ECs and private condos, ECs provide an affordable option to HDB upgraders or 1st timers who aspire to achieve a higher standard of living. Though some may be buying ECs for investment, the majority are buying them for their own occupation.“, she explained.

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Adapted from: The Business Times, 25 February 2016 (See report – opens in new window).

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INZ EC LAUNCH · SHOWFLAT VIEWING · E-APPLICATION

If you would like to be kept posted on all the Inz Residence launch updates or to register for a showflat viewing, please email us here.

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THE LENTORIA FLOOR PLANS . NEW CONDO LAUNCH

Lentoria Condo Showflat. Upcoming condominium development in District 28 in Lentor Hills Estate. Within 6 minutes walk to Lentor Modern mall and Lentor MRT station. The Lentoria floor plans being developed on a new site that was formerly forested land. Opposite Hillock Park and Lentor Hills Residences.

The developer for this project is TID Residential, a joint venture of Mitsui Fudosan and Hong Leong Group . TID will only release the Lentoria floor plans closer to the launch date. This is likely to be in the early part of 2024.

If you are interested to view the Lentoria condo showflat, do head over to the website to register. We will keep you posted on the exact launch dates and will send you the Lentoria condo floor plans as soon as available.