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Mr Chong, a retiree, 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 is a no-brainer and even if purchased shortly after the five-year minimum occupation period (MOP), it is still a good entry price.
Mr Chong has firsthand experience with this as his second son bought a three-bedroom unit at Hundred Palms Residences, a 531-unit project by Hoi Hup Realty, which was launched in July 2017. He wanted to buy a four-bedroom unit but they were sold out quickly. The project received 2,000 e-applications and was completely sold out on the first day of launch at an average price of $841 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 sold units was $1,769 psf, translating to a 110% price gain in eight years.
Hundred Palms Residences by Hoi Hup Realty, where all 531 units were sold out in a single day at an average price of $841 psf (Photo: Agents)
When it comes to investing in Singapore, it is crucial for foreign investors to be well-versed in the regulations and limitations surrounding property ownership. Generally, condos are readily available for purchase by foreigners, unlike landed properties which have more stringent ownership guidelines. Nevertheless, foreign buyers are still subject to the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Despite this added expense, the reliability and potential for growth in the Singapore real estate market remain alluring to foreign investment. With Singapore Projects constantly emerging, the country continues to be an attractive destination for property investors.
Based on the selling price of $1.95 million ($1,849 psf) for a 1,055 sq ft, three-bedroom unit that changed hands in February, Mr Chong estimates that his second son’s EC unit has appreciated by about $1 million since its purchase. Such significant capital gains may have motivated many to upgrade to private housing, notes Mr Chong.
Over three years ago, when Mr Chong’s youngest son was setting up his own home, he sold his 1,260 sq ft, three-bedroom unit at The Interlace, which had been the family’s 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 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 Singapore citizens and permanent residents (PRs) at launch and after the five-year MOP. Foreigners can only buy 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 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 but they share a main entrance.
The 418-unit Twin Fountains by a joint venture between Frasers Property and Lum Chang was completed in 2016 (Photo: Lum Chang website)
Even though they paid $1,000 psf for the unit in 2021, which was considered a new high at that time, recent resale prices are even higher, according to Mr Chong.
Read also: Sim Lian to preview Aurelle of Tampines on Feb 22 at prices from $1,651 psf
Based on a caveat lodged in February, the latest transaction of a 1,206 sq ft, 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. 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. According to Mr Chong, the launch price of Norwood Grand is 53.8% higher than the latest resale price at Twin Fountains. He believes this is due to the announcement of revitalisation and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North, which has revived interest in the northern region.
With the rising prices of ECs and caps on loan quantum, 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 are also required to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if taking a loan. Mr Lim estimates that a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years can take on a maximum loan amount of around $1 million, based on a 4% interest rate for MSR. He believes that despite the higher upfront costs, buyers are not deterred by the higher prices of ECs due to their affordability and lower price per square foot (psf) compared to 99-year leasehold private condos in the Outside Central Region (OCR).
There is still a 42% median price gap between similar-sized homes in the EC market and 99-year leasehold private condos in the OCR, notes Mr Lim. 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,” he explains.
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%, which Mr Gafoor expects to increase as the median price for new condos this year is likely to “tip over $2,200 psf again”.
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. Ms Sun attributes this 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.
Three-bedroom premium showflat at the 760-unit Aurelle of Tampines sales gallery, which is targeted for launch on Mar 8 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Mr Gafoor also believes that demand for ECs is sustainable due to their affordability and lower price psf compared to 99-year leasehold private condos in the same area. He also points out that EC buyers do not have to sell their existing home before purchasing an EC, and HDB upgraders do not incur additional buyer’s stamp duty (ABSD) when buying a new EC. EC buyers may also opt for the Deferred Payment Scheme (DPS) at a slightly higher purchase price. Under the DPS, they only need to pay a deposit, with the 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,” he adds.