from $2.1 mil on June 30, 2021
A retired man named Mr. Chong recently provided financial assistance to his three sons as they were setting up their own homes. While his eldest son purchased a private condo, his two younger sons opted to purchase executive condos (ECs). According to Mr. Chong, buying an EC at a new launch is a no-brainer and even buying shortly after the five-year MOP (minimum occupation period) is a good deal.
Mr. Chong has experienced both scenarios as his second son had bought a three-bedroom unit at the 531-unit Hundred Palms Residences during its launch in July 2017. He wanted a four-bedroom unit, but they were all quickly snapped up. The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out on the first day at an average price of $841 psf. The EC, located on Yio Chu Kang Road, was completed in 2019 and records show a 110% price gain in 8 years with an average price of $1,769 psf based on caveats lodged in January and February 2025.
Mr. Chong’s second son’s unit, which was purchased at the launch, is now estimated to have appreciated by about $1 million. This significant capital gain may have been a motivation for many to upgrade to private housing, according to Mr. Chong.
A few years ago, when his youngest son was ready to set up his own home, Mr. Chong sold their family’s home of the past decade – a 1,260 sq ft, three-bedroom unit at The Interlace. Then 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. This project was a joint venture between Frasers Property and Lum Chang, launched in 2013 and completed in 2016.
ECs are exclusively available to Singapore citizen or permanent resident (PR) buyers at launch, and only open to foreigners in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP). Mr. Chong’s unit at Twin Fountains offers him privacy as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. As a dual-key unit, each apartment has its own separate entrance despite sharing the main entrance.
Despite purchasing the unit in 2021 at a price of $1,000 psf, which was considered a new high at that time, recent resale prices are even higher now, says Mr. Chong.
In October last year, City Developments launched Norwood Grand, a 348-unit private condo at Champions Way in 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 price of Norwood Grand, which is 53.8% higher than the latest resale price at Twin Fountains. He believes 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 revived interest in the northern region.
However, with rising prices of ECs and caps on loan quantum, buyers now have to fork out a larger cash outlay, explains Eugene Lim, key executive officer of ERA Singapore. ECs have a monthly household income ceiling of $16,000, and buyers must meet Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) requirements if taking out a loan. Under a 4% interest rate for MSR, a 30-year-old buyer with a household income of $16,000 can only take a maximum loan amount of around $1 million, estimates Mr. Lim.
Despite the higher upfront costs, buyers are not discouraged by the rising prices of ECs as they still see value due to their affordability and lower price psf compared to 99-year leasehold private condos in the same area, says Mr. Lim. Aside from the lower prices, EC buyers do not have to sell their existing home before purchasing, and HDB upgraders do not need to pay Additional Buyer’s Stamp Duty (ABSD). They can also opt for the Deferred Payment Scheme (DPS), where they only need to pay a deposit and defer their loan until after the completion of the EC.
Mr. Lim adds that despite the launch of three new ECs this year, they are strategically located in different areas and will cater to the housing needs of Singaporeans across the island. According to ERA, there is still a 42% median price gap between new ECs and new private condos in the Outside Central Region (OCR). However, Christine Sun, OrangeTee Group’s chief researcher and strategist, notes that the median price gap has narrowed from 49.4% in 2023 to 44.2% in 2024 and to 43.6% in January 2025 due to the rising prices of ECs, which has increased by 9.6% from 2023 to January 2025. Despite this, the price gap is still significant, which is why EC buyers, particularly HDB upgraders, still see value in ECs, explains Mr. Lim.