(0)
Retiree Mr Chong has given financial assistance to his three sons when they were buying their homes. His eldest son bought a private condo, while his two younger sons bought executive condos (ECs). According to him, buying an EC during launch is an obvious choice. “Even if you buy shortly after the five-year MOP [minimum occupation period], it’s still a good entry price,” he says. Mr Chong has experienced both scenarios. His second son purchased a three-bedroom unit at Hundred Palms Residences, a 531-unit development that was launched in July 2017. “He wanted a four-bedroom unit, but they were quickly taken,” shares Mr Chong. The project by Hoi Hup Realty received 2,000 e-applications and was fully sold on the first day of launch at an average price of $841 per square foot (psf). The EC, located on Yio Chu Kang Road, was completed in 2019. Based on caveats lodged in January and February 2025, the average price of units sold was $1,769 psf, representing a 110% increase in eight years. Check out the latest listings for Hundred Palms Residences properties Mr Chong says that based on the selling price of $1.95 million or $1,849 psf for a 1,055 sq ft three-bedroom unit that was sold at Hundred Palms in February, his second son’s EC unit has appreciated by about $1 million since he purchased it during launch. Such substantial capital gains may have encouraged many people to upgrade to private housing, according to Mr Chong. In 2018, when Mr Chong’s youngest son decided to buy 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 last ten years. 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. The EC was jointly developed by Frasers Property and Lum Chang, and was launched in 2013 and completed in 2016. ECs are only available to buyers who are Singaporean citizens or permanent residents (PRs) at launch and after a five-year MOP. Foreigners can only purchase ECs in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP). The dual-key unit provides Mr Chong with privacy as he stays in the one-bedroom studio while his son and family stay in the three-bedroom apartment. Each apartment has its own separate entrance despite sharing the main entrance. The 418-unit Twin Fountains, jointly developed by Frasers Property and Lum Chang, was completed in 2016. Even though they paid $1,000 psf for the unit in 2021, which was then considered a new high, Mr Chong points out that recent resale prices are even higher. Check out the latest listings for Twin Fountains properties According to a caveat lodged in February, the most recent transaction of a 1,206 sq ft four-bedroom unit went for $1.62 million or $1,344 psf. “Even if you missed the boat, like my youngest son, and we bought in at $1,000 psf, resale prices at Twin Fountains have since gone up by 30%,” adds Mr Chong. Referring to the launch of Norwood Grand, City Developments’ 348-unit private condo at Champions Way in Woodlands last October, Mr Chong says that the condo’s average selling price, which is 53.8% higher than the latest resale price at Twin Fountains, has set a new benchmark for Woodlands. He adds that the announcement of revitalization and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North, has created more interest in the northern region. According to ERA Singapore’s Key Executive Officer, Eugene Lim, rising EC prices and limits on loan quantum have resulted in EC buyers needing to put in a larger cash outlay. For ECs, the monthly household income ceiling is $16,000. Buyers must meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if they take out a loan. Based on 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 they can take is around $1 million, estimates ERA’s Mr Lim. Despite the higher upfront costs, buyers are still undeterred by the higher prices of ECs, says Mr Lim. This is because there is still a 42% median price gap between similarly sized homes in the EC market and 99-year leasehold private condos in the Outside Central Region (OCR), he adds. Read more: How many years is an Executive Condominium? “Hence, in terms of absolute price, buyers, particularly HDB upgraders, still see value in ECs,” says Mr Lim. According to him, ERA’s forecast of an average annual take-up of 3,000 to 5,000 EC units is based on its forecast of an average of 5,000 to 8,000 new EC units coming on the market each year. “Although the three EC projects expected to launch this year are strategically spaced out across different locations — Tampines, Pasir Ris, and Tengah — and will cater to the housing needs of Singaporeans across the island,” says Mr Lim. He adds that the median price gap between new ECs and new private condos in the OCR has narrowed in recent years. According to URA Realis data collated by OrangeTee Research, the gap has narrowed from 49.4% in 2023 to 44.2% in 2024 and to 43.6% in January 2025. Sun notes that this narrowing gap is due to EC prices rising faster at 9.6% from 2023 compared to the OCR’s 5.3% increase in non-landed property prices over the same period. There is still a 42% median price gap between similarly sized homes in the EC market and 99-year leasehold private condos in the Outside Central Region. Credit: Samuel Isaac Chua/EdgeProp SG According to Christine Sun, OrangeTee Group’s chief researcher and strategist, the median price gap between new ECs and new private condos in the OCR has narrowed in recent years. Based on data sourced from URA Realis, the gap has narrowed from 49.4% in 2023 to 44.2% in 2024 and to 43.6% in January 2025. According to OrangeTee’s Ms Sun, this narrowing gap is due to EC prices going up faster over 9.6% from 2023 compared to the OCR’s 5.3% growth in non-landed property prices over the same period. However, despite the rising cost of ECs and caps on loan quantum, the demand for ECs remains strong due to their affordability and lower psf prices compared to 99-year leasehold private condos in the same region, according to Mr Lim. Mr Lim states that in addition to the lower prices compared to new private condos, EC buyers do not need to sell their current property before buying, and HDB upgraders do not have to pay additional buyers’ stamp duty (ABSD) when purchasing a new EC. He goes on to say that employing the Deferred Payment Scheme (DPS) could raise the purchase price slightly. With the DPS, buyers only need to pay a deposit, and their loan will be deferred until after the EC is completed. “This way, buyers will not have to service two mortgages while waiting for the new house to be completed,” explains Mr Lim. “With no ABSD payable and the availability of the DPS, HDB owners find it less difficult to upgrade to a new EC.” Meanwhile, PropNex’s chief executive officer, Ismail Gafoor, expects the median price for new ECs to “again cross $2,200 psf.” Check out the latest listings for Twin Fountains properties