More supply, rule change needed to solve executive condo crunch

THE executive condominium (EC) market is experiencing a supply crunch at a time when the sandwiched class of home buyers - which this property class caters to - could use some help.

The government minted this public-private housing hybrid in the 1990s to cater to households whose monthly incomes are too high to qualify them to buy a new Housing and Development Board flat but who find a private home purchase out of reach.

Launch prices of new private residential developments have begun escalating as a result of developers having paid higher land prices in the past 15 months, making it more challenging for the sandwiched class of households who aspire to own a brand new private property. At a time like this, ECs play a key role. The problem, however, is that EC prices are also shooting up due to a shortage of new units available for sale.