, explores other opportunities in healthcare
Mr Chong, a retiree, has provided financial assistance to his three sons while they were setting up their homes. While his eldest son bought a private condo, his two younger sons chose executive condos (ECs). According to him, buying an EC at a new launch is a no-brainer, even if it is purchased shortly after the five-year minimum occupation period (MOP), as it offers a good entry price.
Chong has experience in both situations. His second son bought a three-bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. “He wanted to buy a four-bedroom unit, but they were snapped up quickly,” recalls Chong.
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 psf. The EC on Yio Chu Kang Road was completed in 2019. Based on caveats lodged in January and February 2025, units sold fetched an average price of $1,769 psf, resulting in a 110% price gain in just eight years.
Chong points out that based on the selling price of $1.95 million ($1,849 psf) for a 1,055 sq ft, three-bedroom unit that was sold at Hundred Palms in February, his second son’s EC has appreciated by about $1 million from the time of its launch. This significant capital gain may have motivated many others to upgrade to private housing, he says.
Three years ago, when his youngest son decided to set up his own home, Chong sold his 1,260 sq ft, three-bedroom unit at The Interlace, which had been their family home for the past decade. In 2021, the Chongs purchased 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 only open to buyers who are 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 offers 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.
Even though they paid $1,000 psf for the unit in 2021, which was considered a new high at the time, recent resale prices are even higher, says Chong.
In fact, the latest transaction of a 1,206 sq ft, four-bedroom unit in February was sold for $1.62 million ($1,344 psf). “Even though 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. About 84% of the units were sold during its launch weekend at an average price of $2,067 psf, which has set a new benchmark for Woodlands.
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Chong points to the launch of Norwood Grand’s average selling price, 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.
Narrowing price gap between ECs and private condos
However, with rising EC prices and caps on loan quantum, EC buyers will now have to pay a larger cash outlay, says Eugene Lim, key executive officer of ERA Singapore.
For ECs, the monthly household income ceiling is $16,000. Buyers have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements when taking a loan. Assuming a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years, the maximum loan amount they can take out 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 compared to 99-year leasehold private condos in the Outside Central Region (OCR), he adds.
For instance, the median price of a 900-1,000 sq ft EC unit is about $1.48 million, while that of a similar-sized unit in a private condo is about $2.1 million. “Therefore, 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. Furthermore, 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.
According to Christine Sun, OrangeTee Group’s chief researcher and strategist, 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.
Affordability, deferred payment
According to ERA’s Lim, the demand for ECs is therefore sustainable due to their affordability and lower price psf than 99-year leasehold private condos in the same area.
Aside from lower prices relative to new private condos, 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, he points out.
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 is 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.
He adds: “Although there are three new EC launches 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.”