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Mr Chong, a retiree, supported all of his three sons when they were setting up their homes. His eldest son purchased a private condo while his two younger sons purchased executive condos (ECs). According to Mr Chong, it was a no-brainer for his sons to purchase an EC at a new launch. Even if they bought it shortly after the five-year Minimum Occupation Period (MOP), it was still a good entry price.
Mr Chong has experienced both scenarios as his second son purchased a three-bedroom unit at the 531-unit Hundred Palms Residences which was launched in July 2017. However, his son was unable to get a four-bedroom unit as they were sold out very quickly. The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out on the first day of the launch at an average price of $841 psf. The EC, located on Yio Chu Kang Road, was completed in 2019 and based on caveats for units sold in January and February 2025, the average price was $1,769 psf, a 110% price gain in eight years.
The most recent resale price of a 1,055 sq ft, three-bedroom unit at Hundred Palms was $1.95 million ($1,849 psf) in February, according to caveats. Mr Chong believes that his second son has seen his EC unit appreciate by about $1 million since he purchased it at launch. Such capital gains have motivated many to upgrade to private housing, notes Mr Chong.
Three years ago, when Mr Chong’s youngest son decided to set up his own home, Mr Chong sold his 1,260 sq ft, three-bedroom unit at The Interlace, which had been their family home for the past decade. In 2021, the Chongs bought a 1,399 sq ft, four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands that was developed by a joint venture between Frasers Property and Lum Chang. The EC was launched in 2013 and completed in 2016.
ECs are only open to Singapore citizens or permanent residents (PRs) at launch and after the five-year MOP. Foreigners can only buy ECs in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP). The dual-key unit affords Mr Chong privacy, as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. As a dual-key unit, while the main entrance is shared, each apartment has its own separate entrance.
Even though they paid $1,000 psf for the unit in 2021 – which was considered high then – the resale prices at Twin Fountains are now even higher, according to Mr Chong. A caveat lodged in February showed that the latest transaction for a 1,206 sq ft, four-bedroom unit was $1.62 million ($1,344 psf). “Even if you miss the boat, like my youngest son, and we bought in at $1,000 psf, resale prices at Twin Fountains are now 30% higher,” adds Mr Chong.
Last October, City Developments launched the 348-unit private condo Norwood Grand at Champions Way, Woodlands. About 84% of the units were sold during its launch weekend at an average price of $2,067 psf, setting a new benchmark for Woodlands. Mr Chong points to the launch of Norwood Grand’s average selling price, which is 53.8% higher than the latest resale price at Twin Fountains. He believes that the announcement of revitalisation and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North, has revived interest in the northern region.
However, EC buyers are now required to shell out a larger cash outlay due to rising EC prices and caps on loan quantum, says Eugene Lim, key executive officer of ERA Singapore. For ECs, the monthly household income ceiling is $16,000. Buyers have to meet the Mortgage Servicing Ratio (30% cap) and the Total Debt Servicing Ratio (55% cap) if they take a loan.
Assuming a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years, the maximum loan amount the buyer can take on is around $1 million, estimates ERA’s Lim.
Despite the higher upfront costs, buyers are not deterred by the higher prices of ECs, says Lim. This is because there is still a 42% median price gap between similar-sized homes in the EC market compared to 99-year leasehold private condos in the Outside Central Region (OCR), he adds.
For instance, the median price of an EC unit sized at 900-1,000 sq ft is about $1.48 million, while that of a similar-sized unit in a private condo is about $2.1 million. As such, buyers, particularly HDB upgraders, still see value in ECs, Lim reasons.
In 2024, the average transaction price of new non-landed private condos in the suburbs or OCR crossed the $2,200 psf mark. Meanwhile, new ECs in 2024 were sold at a median price of $1,539 psf based on caveats lodged, says Ismail Gafoor, CEO of PropNex. That reflects a price gap of 44.2%. He expects the median price for new condos this year “to tip over $2,200 psf again”.
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When it comes to investing in condos in Singapore, there is another crucial factor to consider – the government’s property cooling measures. In an effort to maintain a stable real estate market and prevent speculative purchases, the Singaporean government has implemented various measures over the years. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), impose higher taxes on foreign buyers and those purchasing multiple properties. While they may have an impact on the short-term profitability of condo investments, these measures also contribute to the long-term stability of the market, making it a secure environment for investing. As a result, Singapore Projects continue to be a desirable choice for investors.
OrangeTee Group’s chief researcher and strategist, Christine Sun, found that the median price gap between new ECs and new private condos in the OCR has narrowed in recent years. Based on URA Realis data, the gap narrowed from 49.4% in 2023 to 44.2% in 2024 and 43.6% in January 2025. Ms Sun attributes this to EC prices rising at a faster pace of 9.6% between 2023 and January 2025 compared to a 5.3% increase in non-landed home prices in the OCR over the same period.
According to ERA’s Lim, there is sustainable demand for ECs due to their affordability and lower price psf compared to 99-year leasehold private condos in the same area. Aside from the lower price relative to new private condos, EC buyers do not need to dispose of their existing home before making their purchase. HDB upgraders also do not incur additional buyers’ stamp duty (ABSD) when buying a new EC, Lim points out.
Moreover, EC buyers may opt for the Deferred Payment Scheme (DPS) at a slightly higher purchase price. Under the DPS, they only need to pay a deposit, with their loan deferred until after the completion of the EC. This way, buyers will not need to service two mortgages while waiting for the new home to be completed, says Lim. With no ABSD payable and the availability of the DPS, HDB owners find it easier to upgrade to a new EC.
He opines that although three new EC launches are expected this year, they are strategically spaced out across different locations — Tampines, Pasir Ris and Tengah — and will cater to the housing needs of Singaporeans across the island.