North Gaia’s Grand Opening: Why 27% Feel Like a Split Batch
When the first condo launch of 2022 kicked off in April, North Gaia made its debut on Yishun Close – right across from the brand‑new Yishun BTOs. By the weekend, they had sold 164 units, which works out to 27 % of the 616 apartments in total.
Quick Comparison: A Too‑Close Look at Parc Greenwich
- Parc Greenwich (Fernvale Lane) had a sizzling launch: 65 % of units sold over the first weekend.
- North Gaia’s 27 % may feel like a “meh” footnote compared to Parc Greenwich’s fireworks.
Could the Price Tag Be the Culprit?
Some folks are wondering if the high price point of North Gaia is driving buyers away. If you’re looking for the next big thing, a condo that feels overvalued can feel as frustrating as a flat pizza crust.
Bottom Line: New ECs Are Still Fighting the Overpriced Reputation?
Will future Executive Constructions still be shackled by the “too‑expensive” label? Only time, the market, and a pinch of optimism will tell.
What is the North Gaia launch price?
North Gaia Units Sky‑High? Let’s Pause, Unpack, and Laugh a Little
At first glance, it feels like a straight‑forward numbers‑story: the smallest studio on North Gaia is going for roughly $1.2 million, while the most spacious loft eyes a hefty $2 million tag.
Crunch the math, and you land at an average of about $1,300 per square foot. That’s almost hard‑to‑spot in any price‑per‑square‑foot chart for a new development—something that would usually raise eyebrows. Yet, in the world of luxury builds, it’s become the new “nice to have” reality.
Remember When the $1,000 / sq ft Benchmarked?
Just a few years ago, Piermont Grand shattered the $1,000 psf barrier: it was the first brand‑new development to cross that line. Since then, that milestone has turned into a standard. The norm has shifted, and now hitting $1,000 psf feels like a bare‑bones baseline—think of it as a new “minimum threshold” in the upscale housing market.
Key Takeaways
- North Gaia’s price range spans $1.2–$2 million for the most compact to the most expansive units.
- At an average of $1,300 psf, the developer enjoys one of the higher average prices across EC (executive‑class) projects.
- The industry trend: surpassing $1,000 psf has become a given, pushing developers to consistently aim higher.
Bottom line: the numbers say it all. If you’re eyeing a slice of North Gaia’s prestige, brace for the financial heft—but also welcome the elevated status that comes with it.
Aren’t Executive Condos supposed to be subsidised?
Executive Condos: A Quick Glimpse at the Rules That Keep Them Affordable
Even though Executive Condos (ECs) are sold by private developers, they’re built on government‑subsidised land. That means the price should be a bit friendlier than the usual high‑end private homes. They’re designed for those Singapore citizens who’ve outgrown the subsidised HDB flats but still can’t swing the market rate of a fully private property.
Why the “I’m Not Eligible” Box Can Be Tricky
Before you hop onto the EC train, you need to check a few boxes. Here’s the low‑down:
- Haven’t earned more than $16,000 a month? Good. If your household income is higher, the subsidy stops.
- Loan must come from a bank or a financial institution. No fancy niche lenders, no problem.
- Keep the mortgage servicing ratio (MSR) under 30 %. It’s basically the percentage of your income that goes toward your mortgage payments. Stay below 30 % and you’re in the clear.
When you stack these requirements together, you’ll see that the eligibility criteria are pretty tight. That’s why so many folks find it hard to navigate the EC jungle.
What Happens If You Get It Wrong?
The ECs will lose their “subsidised” tag if you overstep any of those limits. That will raise the price tag, and you’re back in the full‑price market territory. Sorry, no more VIP passes to the affordable passport.
Need a Little Broader Perspective?
Instead of wading through the text, you can jump straight into our podcast episode. We break down the eligibility hoops and give you the real‑world stories to keep things interesting.
— Episode 46 (Apple Podcasts, Anchor, or any other streaming service you like)
How much can you borrow to buy an EC unit?
Your loan amount is limited by MSR
Mortgage Servicing Ratio: The Secret Sauce for Your Big Loan
Ever wonder why the bank always asks you to keep your house‑loan payments below a certain percentage of your income? That percentage is the Mortgage Servicing Ratio (MSR), and it’s the gatekeeper that determines how much you can borrow.
What the MSR Actually Means
- • 30% rule: Your monthly mortgage payment can’t be more than 30 % of your combined household income.
- • House-to-income balance: Think of it as keeping your home budget in check so you don’t end up drowning in debt.
- • No other debts considered (in this example): The calculation is based purely on income, assuming you’re debt‑free.
Crunching the Numbers (Behold the Math)
Suppose your household brings in $14,000 a month and you’re clean of any other liabilities. Using the 30 % rule:
- 30 % of $14,000 = $4,200 per month available for mortgage payments.
- Assuming a standard 30‑year mortgage at about 3.5 % interest, that $4,200 rises to roughly $935,000 total borrowing capacity.
Why Is This Useful?
Knowing your MSR‑based limit gives you a solid starting point when hunting for that dream house. It keeps the loan realistic, prevents future cash‑flow nightmares, and confirms you’re not overdoing it.
So next time your mortgage advisor asks for your income, remember to keep the 30 % rule in mind—your future self will thank you for it.
Your loan amount is limited by LTV
Borrowing at the Edge: Navigating That Almost‑Million Dollar Swing
Picture this: you’re eyeing a sweet pad that sits between a cozy $935,000 and a jaw‑dropping $1.06 million. Sounds like a win, right? But hold your excitement—the Loan‑to‑Value (LTV) ratio will bite you if you’re not careful.
What’s LTV, and why does it matter?
LTV is the percentage of the property’s worth that you’re willing—and able—to borrow. The latest rule says you can only roll up to 75 % because banks won’t let you borrow the entire price tag.
Getting that 75 % LTV? Here’s the checklist:
- Zero outstanding mortgages
- Loan term ≤ 30 years
- Loan end no later than your 65th birthday — you’re not jail‑free at 70
Income and Borrowing Power
With the MSR freighter of $16,000 monthly household income, you could, in theory, shoot for that $1.06 million maximum—assuming you’ve got a clean bill of health and no lingering debts.
But LTV is the gatekeeper
Let’s flip the script. Say you’re hunting a smaller unit at North Gaia priced at $1.2 million. Even with the best possible LTV, you’re capped at 75 % of that price. That’s a $900,000 loan cap.
Bottom line
When you’re cutting your teeth in real estate, the LTV dance keeps you from floating too far above Earth. Keep those mortgages off the table, lock your loan term inside the 30‑year window, and remember: no borrowing beyond the 65th birthday. With those rules in check, you’ll clear the threshold for that dream home without turning the loan into a financial roller‑coaster.
Where does the rest of the money come from?
Buying a $2M EC Unit: Why Your Cash King Bag Us?
Picture this: you’re pulling in the maximum monthly household income of $16,000 and eyeing one of the biggest units in North Gaia. The price tag? $2 million. Great, right? Let’s break down what really gets you there.
Step 1 – The Bank’s Offer
- The bank will lend you up to $1.06 million (assuming you’re debt‑free and under 35).
- That’s your “bread and butter” portion of the purchase.
Step 2 – Get Your Cash in the Desk
- Of the total price, at least 5% must come from your own pocket. In other words, drop $100,000 into your cash drawer.
- After that, you still need to cover $840,000 – either in cash, CPF savings, or a blend of both.
Step 3 – Don’t Forget the Extra Fees
- Buyer’s stamp duty: $64,600.
- Plus, any miscellaneous charges that pop up while you finalize the paperwork.
Bottom Line
So, if you want the $2 million EC unit, it’s not just the loan you’re looking at – it’s your entire cash flow, CPF stash, and a whole lot of guilt at the receipts.
Think of it like a giant puzzle where you’re the missing piece. Good luck, and may the house be on the right side of the street!
Is this a realistic scenario?
North Gaia’s $2 Million Condo Craze & The Real Aim of Executive Condominiums
Picture this: nine condos at North Gaia just sold for over $2 million. That’s the first clue telling us the market is far from the “$16,000‑per‑year” stereotype. In fact, it proves people earning below that ceiling can jump into premium real‑estate without breaking the bank.
But why bother with Executive Condominiums (ECs) at all? The real question is what’s their intended purpose?
Who’s the EC Crowd?
- About 70% of EC units are marketed toward first‑timers – people who’ve never owned subsidised housing before.
- These are typically Singapore citizens in their early 30s, juggling the big life milestones (first job, kids, that dream house). The idea is to give them a foot‑in‑the‑door in a more affordable, yet stylish, future.
So, while the headline pricing may seem high, ECs are really about giving the younger generation a realistic shot at home ownership—without the stark stigma of low‑income flippancy. That’s the genuine charm behind the Executive Condo dream.
Let’s illustrate this:
How A 30‑Year‑Old Couple Can Grab a $1.3M House in 2025
Picture this: You and your partner, both 30, pocketing $7,500 a month each. Yeah, you’re basically living the dream, right? And you’ve been earning that sweet steady wage for a few years now.
Assuming you’re both maxing out your CPF Ordinary Account with a 37% contribution rate, the nest egg should be hovering around $300,000. That’s already a nice cushion to show off when the market gets as volatile as a teenager’s mood swings.
With that safety net, plus about $70,000 in cash on hand, you’re in the perfect spot to bite into a $1.3 million condo. No big deal!
What’s Happening in the Real‑Estate Scene?
- Back in 2019, a $1.3 million price tag snagged you a 4‑bedroom unit at $1,000 per square foot in the Piermont Grand area.
- Fast forward to now, and that exact same dollar amount has boiled down to a 3‑bedroom pad in North Gaia, 25% smaller, and costing about $1,300 per square foot.
That’s a bit of a bummer when you compare the two. Prices are climbing faster than your favorite coffee shop’s latte menu.
Quick Takeaway
Don’t let the numbers scare you. With your steady income, savvy CPF strategy, and a solid cash stash, you can still rock a maison that’s $1.3 million—just make sure you pinch that extra 10% in the room.
Who can afford ECs at this rate?
Why ECs Are Still a Big Chunk of Change Even Though They’re supposed to Be Budget‑Friendly
Picture this: you’re earning more than the HDB BTO bracket but can’t swing a private property purchase. ECs (Executive Condominiums) have been pitched as the sweet middle ground – a one‑stop solution for people who need a KPR but don’t qualify for the standard BTOs. Yet, the price tags on many ECs are touching the private market. So why the mismatch?
1. The “Too Good To Be True” Tax Tag
Developers see EC buyers as a niche segment with relatively high income. They can afford a deposit and still want the perks of a new build, so the profit margins look tempting. Think of it like selling luxury cars to people who technically live within the price range of economy cars – the manufacturer is basically saying, “you’re good at getting money out of us.”
2. Apartments That Look & Feel Like Private Property
ECs are built with the same design language and amenities as private condos. From carpeted floors to rooftop gardens, developers pack them full of everything a high‑end homeowner would expect. Consequently, the cost rises to match the “all‑the‑things” vibe.
3. The “Qualification Quirk” Dilemma
When we chat about it on the podcast, one glaring example pops up: a couple that only slipped through the cracks because one partner hit early retirement. The early‑retiree had a stable pension, which bumped the couple’s combined income over the HDB threshold. Ironically, they’re the very folks who should have gotten the best deal—yet the market still nudges them toward a sky‑high price.
Bottom Line
- Developers are banking on the fact that EC buyers have disposable income.
- The product sells itself; it’s Gated‑Community + Quality.
- Regulatory frameworks haven’t caught up with the new reality.
So while ECs were meant to act as a “soft landing” for middle‑income earners, the current playbook seems to leave the middle‑income buyers stuck somewhere between the elite and the everyday homeowner. And that’s a catch‑22 that needs a fresh look to truly live up to its promise.
And it looks like it may get worse
How the North Gaia Prices Came Out of the Blue
Picture this: in 2020, North Gaia was whistled to as a bargain on paper, with a bid of $373.5 million (roughly $576 per square foot). But guess what? Reality decided to throw a curveball.
Three Knock‑off Communities Darken the Landscape
- EC Project A: $620 psf – already out of the reach of most Singapore citizens.
- EC Project B: $630 psf – a slap in the face to affordability.
- EC Project C: $645 psf – no wonder many are creating wish‑lists.
That means North Gaia isn’t the freak of nature; it’s more like the new normal.
The Domino Effect of Pricing (2022 Snapshot)
- €-priced ECs are keeping usual citizens on the sidelines.
- Budget‑conscious buyers might need to hop on the public transport or simply start dreaming of a tiny house on the moon.
This article first appeared in Mortgage Master, and it’s a reminder that even “low‑cost” has a new definition in Singapore real estate.
