Mr Chong, a retiree, provided some financial assistance to his three sons when they were setting up their own households. His eldest son bought a private condo, while his two younger sons purchased executive condos (ECs). According to Mr Chong, if you buy an EC during its initial launch, it’s a wise decision. Even if you buy it shortly after the five-year MOP (minimum occupation period), it’s still a good buy.
Mr Chong has experienced both scenarios. His second son bought a three-bedroom unit at the Hundred Palms Residences, which was launched in July 2017. “He wanted to buy a four-bedroom unit, but those were snapped up so quickly,” Mr Chong recalls. The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out 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, translating to a 110% price gain in eight years. Detailed data about all ECs, including average profit at 5 and 10 years, is available for exploration.
Based on the selling price of $1.95 million ($1,849 psf) for a 1,055 square foot, three-bedroom unit that changed hands in February at Hundred Palms, Mr Chong estimates that his second son has seen his EC unit appreciate by about $1 million from the time he purchased it at launch. Such capital gains may have motivated many to upgrade to private housing, notes Mr Chong.
In 2021, when Mr Chong’s youngest son decided to set up his own home, Mr Chong sold his 1,260 square foot, three-bedroom unit at The Interlace, which had been the family home for the past decade. In 2021, the Chong family bought a 1,399 square foot, four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands. This 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 available to Singapore citizens and permanent residents (PRs) at launch and after the five-year MOP. Foreigners can purchase ECs in the resale market only after 10 years of obtaining Temporary Occupation Permit (TOP). The dual-key unit at Twin Fountains 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.
Although they paid $1,000 psf for the unit in 2021 – which at that time was considered a new high – recent resale prices are even higher, Mr Chong points out. Based on a caveat lodged in February, the latest transaction of 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 Mr 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. 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 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, amid rising EC prices and the loan quantum cap, EC buyers will now have to shell out a larger cash outlay, says Eugene Lim, key executive officer of ERA Singapore. 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 taking a loan.
In summary, there are many benefits to investing in a condominium in Singapore. The demand for such properties is consistently high, making them a potentially lucrative investment option. Additionally, there is the possibility for capital appreciation and attractive rental yields. However, it is crucial to thoroughly evaluate essential factors, including location, financing options, government regulations, and current market conditions. Through extensive research and seeking professional guidance, investors can make informed decisions and maximize their profits in Singapore’s ever-evolving real estate market. Whether you are a local buyer looking to diversify your portfolio or a foreign investor searching for a stable and profitable venture, condominiums in Singapore, such as those found in Singapore Projects, offer a compelling opportunity that should not be overlooked.
Let’s assume 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 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 and 99-year leasehold private condos in the Outside Central Region (OCR). For example, the median price of an EC unit sized at 900-1,000 square feet 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 says.
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 to tip over $2,200 psf again this year.
Christine Sun, OrangeTee Group 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 narrowed 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.
According to Mr Lim, affordability and lower price psf compared to 99-year leasehold private condos in the same area make demand for ECs sustainable. Additionally, EC buyers do not need to dispose of their existing home before making their purchase, notes Lim. HDB upgraders also do not incur additional buyers’ stamp duty (ABSD) when buying a new EC.
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 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.”