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Mr Chong, a retiree, had provided support for his three sons when they were setting up their homes. His eldest son purchased a private condo, while his two younger sons opted for executive condos (ECs). According to Mr Chong, buying an EC at a new launch was a clear choice. He noted that even if one were to purchase an EC shortly after the five-year MOP (minimum occupation period), it would still be a good entry price.
Having experienced both scenarios, Mr Chong shared that his second son had purchased a three-bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. He also mentioned that his son had initially wanted to buy a four-bedroom unit, but those were quickly snapped up. The project, developed by Hoi Hup Realty, received 2,000 e-applications and was completely sold out on the first day of launch, with 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 selling price of units was $1,769 psf, which translates to a 110% price gain in just eight years.
According to Chong, his second son’s EC unit has appreciated by around $1 million since its purchase at launch. This significant capital gain may have motivated others to upgrade to private housing, Chong noted.
Three years ago, when Chong’s youngest son decided to set up his own home, they sold their 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. The EC, developed by a joint venture between Frasers Property and Lum Chang, was launched in 2013 and completed in 2016.
ECs are available only for Singapore citizens or permanent residents (PRs) at launch and after the 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 Chong with some privacy, as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. Each apartment has its own separate entrance, although the main entrance is shared.
Despite paying $1,000 psf for the unit in 2021, which was considered a new high at that time, Chong pointed out that recent resale prices at Twin Fountains are even higher. Based on a recent caveat, the latest transaction for a 1,206 sq ft, four-bedroom unit was $1.62 million ($1,344 psf). Chong added that even though they may have missed the opportunity to buy at the best price, the resale prices at Twin Fountains are now 30% higher than what they had paid.
In October 2024, 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 pointed out that the launch of Norwood Grand’s average selling price was 53.8% higher than the latest resale price at Twin Fountains. He believes that the announcement of revitalisation and new infrastructure, such as the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North, has revived interest in the northern region.
However, with rising EC prices and caps on loan quantum, EC buyers will now have to pay a larger cash outlay, according to Eugene Lim, key executive officer of ERA Singapore. For ECs, the monthly household income ceiling is $16,000, and buyers have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if taking a loan. Taking a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years, Lim estimated that the maximum loan amount the buyer could take is around $1 million, based on the stress test of a 4% interest rate for MSR.
Despite the higher upfront costs, buyers are not deterred by the higher prices of ECs, Lim shared. He explained that this was because there was 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). For instance, the median price of a 900-1,000 sq ft EC unit was about $1.48 million, while that of a similar-sized unit in a private condo was about $2.1 million. Lim noted that in terms of absolute price, buyers, particularly HDB upgraders, still saw value in ECs.
Lim also shared that in addition to the lower price compared to new private condos, EC buyers did not need to dispose of their existing home before purchasing an EC. HDB upgraders also did not have to pay additional buyers’ stamp duty (ABSD) when buying a new EC. Besides, 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 is deferred until after the completion of the EC.
Lim noted that this way, buyers would not need to service two mortgages while waiting for the new home to be completed. He added that with no ABSD to pay and the availability of the DPS, HDB owners found it easier to upgrade to a new EC. Lim also believed that despite the launch of three new ECs this year, they would be strategically spaced out across different locations in Tampines, Pasir Ris, and Tengah, catering to the housing needs of Singaporeans across the island.
Christine Sun, OrangeTee Group chief researcher and strategist, found that the median price gap between new ECs and new private condos in the OCR had narrowed in recent years. Based on data from URA Realis, the gap had narrowed from 49.4% in 2023 to 44.2% in 2024, and to 43.6% in January 2025. Sun attributed 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.
As the median price for new condos is expected to tip over $2,200 psf again this year, Ismail Gafoor, CEO of PropNex, believes this will result in a similar median price for new ECs in 2024. Gafoor noted that this reflected a price gap of 44.2%. He expects that the median price for new condos this year will set a new benchmark for ECs.