Are prices of ECs rising?

In the last three months, there were 156 EC sale transactions across the island. Here are the prices four popular ECs fetched.
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The idea of ECs was mooted by then Prime Minister Goh Chok Tong in 1995 as a means to shorten the queue for HDB executive flats and to meet Singaporeans' demand for affordable, private property.

Aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach, EC homes are targeted at couples between ineligibility for new Housing Board (HDB) flats because their combined monthly income exceeds the $8,000 cap but who may find private property too expensive.

The gross monthly household income of buyers of new EC units cannot exceed $10,000.
Earlier in the week, National Development Minister Mah Bow Tan said more ECs will be built this year and that they will make up about 10 per cent of the approximately 12,000 flats to be built this year.

The most recent one launched was La Casa in Woodlands in 2005, which has 444 units and was completed in 2008.

He added that the EC is 'well-designed, has good location, it is something that will have all the amenities and, at the same time, you can enjoy the grant... That is why we will be putting more ECs on the market'.

He is referring to a $30,000 housing grant that first-time EC buyers can apply for.
In the past three weeks, two new EC sites released by HDB were awarded to tenders with higher-than-expected bids.

The Sengkang EC site attracted a top bid of $315 per sq ft (psf) of gross floor area, while the Yishun EC site drew a top bid of $281 psf of gross floor area.
Some 520 apartments could be built on the Sengkang site, while the Yishun site could yield another 385 units.

According to a report in last week's The Sunday Times, analysts estimated that at the prices of those winning bids, the developers will have to sell the units in Sengkang for $650 to $700 psf and those in Yishun for $600 to $650 psf.
ECs are developed and sold by private developers with designs that are comparable to private condominiums.

EC apartments come with finishes such as marble and parquet floors, and have condo facilities such as a swimming pool, gym, tennis courts, barbecue pits and a clubhouse.
To date, 23 ECs have been built in Singapore, in the heartlands such as Pasir Ris, Jurong East, Woodlands and Punggol.

The first EC which was completed in 1999 is Eastvale, a 312-unit project in Pasir Ris Drive 3.
ECs are 99-year leasehold properties that have initial sale restrictions similar to those for public housing.

Wed, Mar 24, 2010
The Straits Times
By Tay Suan Chiang