Anderman Architects’ new design for 98-unit condo at Upper SerangoonThe EC market in review
As a retiree, Mr Chong has been able to help his three sons when they were setting up their own homes. His oldest son purchased a private condo, while his two younger sons bought executive condos (ECs). According to Chong, buying an EC at a new launch is an obvious choice. Even if you purchase one shortly after the five-year minimum occupation period (MOP), it’s still a good entry price. He has personally experienced this, as his second son bought a three-bedroom unit at Hundred Palms Residences, which was launched in July 2017.
Chong shares that his son initially wanted a four-bedroom unit, but those were scooped up quickly. The project by Hoi Hup Realty received over 2,000 e-applications and was fully sold on the first day 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, translating to a 110% price increase in just eight years. More comprehensive data about all ECs, including average profits at five and ten years, can be found on Explore.
Based on the selling price of $1.95 million ($1,849 psf) for a 1,055-square-foot, three-bedroom unit that was sold at Hundred Palms in February, Chong estimates that his second son’s EC has appreciated by approximately $1 million since its initial purchase. These capital gains may have prompted many individuals to upgrade to private housing, notes Chong.
Singapore is a hot spot for real estate investment and location is a key factor to consider. This is particularly true in Singapore where the value of properties is greatly influenced by their location. Condominiums located in central areas or near important amenities such as schools, shopping malls, and public transportation hubs have a higher potential for appreciation in value. Popular locations like Orchard Road, Marina Bay, and the Central Business District (CBD) have seen a consistent growth in property values over the years. For families, the proximity to top schools and educational institutions also adds to the appeal of condos in these areas, making them highly sought after and increasing their investment potential. Singapore Projects are also a great option for those looking to invest in the city’s prime locations.
In contrast, over three years ago, when his youngest son decided to become independent, Chong sold his 1,260-square-foot, three-bedroom unit at The Interlace, which had been their family home for the past decade. In 2021, the Chongs bought a 1,399-square-foot, four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands. The EC was developed by a joint venture between Frasers Property and Lum Chang, and was launched in 2013 and completed in 2016.
ECs are only open to buyers who are Singapore citizens or permanent residents (PRs) at the time of launch, and after the five-year MOP. Foreigners are only allowed to buy ECs in the resale market after the tenth year of obtaining a Temporary Occupation Permit (TOP). The dual-key unit provides privacy to Chong, 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 is considered a new high-recent resale prices are even higher, points out Chong. A caveat lodged in February showed that the most recent transaction for a 1,206-square-foot, 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 Chong.
Last October, City Developments launched the 348-unit private condo Norwood Grand at Champions Way in Woodlands. During its launch weekend, about 84% of the units were sold at an average price of $2,067 psf, setting a new benchmark for Woodlands.
Chong highlights the average selling price announcement for Norwood Grand, which is 53.8% higher than the latest resale price at Twin Fountains. He believes that the revitalization and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS), with the Singapore terminus in Woodlands North, have revived interest in the northern region.
Rising prices of ECs, narrowing price gap with condos
However, despite the rising prices of ECs and caps on loan quantum, EC buyers will have to shell out a larger sum of money, says Eugene Lim, key executive officer of ERA Singapore. The monthly household income ceiling for ECs is $16,000. As such, buyers must meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if they take on a loan.
Assuming a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years. Based on the stress test of a 4% interest rate for MSR, the maximum loan amount the buyer can take on is approximately $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. “Hence, in terms of absolute price, 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. This reflects a price gap of 44.2%. He expects the median price for new condos this year “to tip over $2,200 psf again”.
Christine Sun, OrangeTee Group’s chief researcher and strategist, found that the median price gap between new ECs and new private condos in the OCR has narrowed in recent years. Based on data from URA Realis, the gap has decreased from 49.4% in 2023 to 44.2% in 2024 and to 43.6% in January 2025. Sun attributes this narrowing gap to EC prices rising at a faster pace of 9.6% from 2023 to January 2025, compared to a 5.3% increase in non-landed home prices in the OCR over the same period.
Affordability, deferred payment
According to Lim, demand for ECs is therefore sustainable due to their affordability and lower price psf compared to 99-year leasehold private condos in the same area. Not only are they priced lower than new private condos, but EC buyers also do not need to sell their existing homes before purchasing an EC, notes Lim. HDB upgraders are also not required to pay additional buyer’s stamp duty (ABSD) when purchasing a new EC, points out Lim.
Moreover, EC buyers may opt for the Deferred Payment Scheme (DPS) at a slightly higher purchase price. Under 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 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 adds: “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.”