RE-EVALUATION OF EXECUTIVE CONDOMINIUM AS A HOUSING OPTION

Abstract

Executive condominiums are a hybrid form of housing, introduced in 1995, to assist the 'sandwich class' to buy condominiums at more affordable prices, through subsidised land cost. It was also meant to help clear applicants on the HDB Executive Flat queue. Given the current market situation where prices of private condominiums have fallen to below executive condominium levels, this study aims to determine if the Executive Condominium Scheme is still viable. Its function, which was to allow aspiring Singaporeans to own semi-private housing, has been made obsolete by private housing. Survey results indicated that the market for executive condominiums has been reduced to consist mainly of those who are buying flats direct from HDB for the first time This is because they stand to gain a $35,000 housing grant which will help them towards the payment of their unit. Also, a comparison made among the various housing choices in terms of pricing, initial outlay and monthly repayments indicate that executive condominium is no longer an attractive housing option. Although the Executive Condominium Scheme seems redundant in the current market situation, it nevertheless still has a role to play as a moderating influence on private property prices. The suspension of executive condominium land sales by the government should be allowed to continue for an indefinite period until the market recovers.