Your search of a new home in private residential can be from an EC new launch or Condo new launch.
Both type of development eventually become private residential development, once owners of EC development satisfy minimum occupation period as stipulated by HDB ruling.
Piermont Grand, only EC new launch in 2019, is targeted to open for e-application (registration of interest) from 12 Jul 2019.
Riverfront Residences, a condo with available units (as of 5 Jul 2019) from developer, was launched mid-2018.
Piermont Grand and Riverfront Residences both boasts of ‘riverfront living’,
and are located in district 19.
Thus, buyers can decide which type of development suit them better with fair comparatives below.
EC New Launch vs. New Condo
Available apartments at Riverfront Residences come with price from $646k (as of 5 Jul 2019) for its 1-bedder.
For fair comparison, current lowest price of a 915 sqft 3-bedroom unit at $1,159k is used.
Breakeven cost for developer CDL was reported at $1000 psf for Piermont Grand.
Taking average price for similar unit at Piermont Grand at $1100 psf or $1200 psf, estimate selling price will be $1006.5k or $1,098k respectively.
Adding resale levy to purchase price for second timers will lower price gap between Piermont Grand and Riverfront Residences.
- Eligibility Criteria
HDB eligibility criteria applies for executive condominium purchase, and foremost is the income ceiling of $14k household income.
Purchase of private condo is more straightforward.
We’ve dubbed an EC purchase as ‘Only the PRIVILEGED can buy!’, as fulfilling HDB eligibility criteria plus ability to get sufficient financing is rather challenging to many.
In ascertaining loan quantum, TDSR (total debt servicing ratio) is applied, using 60% of income for private condo purchase.
Whereas MSR (mortgage servicing ratio) for EC purchase is 30% of income.
Assuming a scenario of buyer’s household income at $14k with no other loans (car loan, credit card outstanding, etc.), loan quantum under TDSR is estimated to be *$1.87m, and MSR is *$935k, for a loan tenure of 30 years.
*using OCBC Home Loan Calculator
- Other Considerations
Buyers are restricted to own only one residential property for EC purchase.
This means you have to dispose of your existing HDB flat when you collect keys to your EC.
Fret not if you currently own some residential property, for private condo purchase does not take into consideration how many houses you have.
ABSD (additional buyer stamp duty) up to 20% of purchase price will apply, depending on how many residential properties you own and your residential status in Singapore.
- Development’s Attributes
For link to project information of each development, click on name of development above.
Discussion on whether to buy EC or private condo
For a detailed discussion on what suits you best, please call developer’s appointment marketing agent at tel no. 96700937 or submit form below.