By Hetty Musfirah | Posted: 14 January 2013 1704 hrs

SINGAPORE

National Development Minister Khaw Boon Wan said the government will continue to be vigilant of any abuse of the Executive Condominium (EC) housing scheme, and defended the scheme as still being relevant.

He was responding to questions raised in Parliament on the affordability of ECs.

He said: “It is a wonderful scheme. It protects middle-income Singaporeans from competition and ensures a market-friendly way of allowing them to buy condominiums at very affordable prices.

“If I can give you an analogy, it’s like offering you a Lexus at the price of a Corolla, but only Singaporeans have this privilege for (buying it at that price). And they know in due course the price will go up above the level of a Lexus, so I think it is a very good scheme.”

The National Development ministry recently introduced measures to correct abuses of the system by developers and some buyers.

The measures include a size cap of 160 square metres for each EC unit, and requiring buyers of dual-key units to be from multi-generational families.

Executive Condominiums came under the spotlight recently after several penthouse units were sold for exorbitant sums, with one having been sold for S$2.05 million.

Mr Khaw said the measures introduced should bring ECs back to their original intent and ensure developers build ECs to benefit the intended target buyers.

-CNA/ac