wifi“Retiree Mr Chong has provided support for his three sons when they were setting up their homes. While his eldest son had purchased a private condo, his two younger sons had opted for the more affordable option of executive condos (ECs). According to Chong, purchasing an EC during its launch is an obvious choice as it offers a good entry price. He recalls how his second son had bought a three bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. However, he was not able to get a four-bedroom unit as they were quickly sold out. The project by Hoi Hup Realty received a whopping 2,000 e-applications and was completely sold out on the first day of its launch. The average price for an EC on Yio Chu Kang Road was $841 per square foot (psf) and was later completed in 2019. With the average price of units sold in January and February 2025 at $1,769 psf, the project saw a 110% price gain in just eight years. This substantial capital gain has motivated many to upgrade to private housing, says Chong. However, when Chong’s youngest son decided to set up his own home three years ago, Chong seized the opportunity to sell his family home of ten years — a 1,260 sq ft, three-bedroom unit at The Interlace. Then in 2021, the Chongs bought a four-bedroom dual-key resale unit in the 418-unit Twin Fountains in Woodlands. The EC project was completed in 2016 by a joint venture between Frasers Property and Lum Chang. Due to new restrictions, only Singapore citizens and permanent residents (PRs) are able to purchase ECs during its launch and are able to sell them in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP). This dual-key unit in Twin Fountains allows Chong the privacy of occupying the one-bedroom studio while his son and family occupy the three-bedroom apartment. It has a shared main entrance, but each apartment has a separate entrance. Despite purchasing at $1,000 psf, which was considered a record high, the Chongs have still seen a 30% increase in resale prices at Twin Fountains, mentions Chong. In October last year, City Developments launched the 348-unit private condo Norwood Grand at Champions Way in Woodlands. Its prices set a new benchmark for the area, with 84% of the units being sold during its launch weekend at an average price of $2,067 psf. According to Chong, this launch has generated renewed interest in the northern region following news of revitalisation and new infrastructure, such as the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North. While EC prices continue to rise, caps on loan quantum mean that buyers will need to shell out a larger upfront payment, says Eugene Lim, ERA Singapore’s key executive officer. Buyers will also have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements when taking a loan. He adds that assuming a 30-year-old buyer with a household income of $16,000 and a maximum loan tenure of 30 years, the maximum loan amount for the buyer is estimated to be around $1 million if based on the stress test of a 4% interest rate for the MSR. As for the price gap, there is still a 42% median price gap between EC and non-landed private condo units in the Outside Central Region (OCR), notes Lim. For instance, a 900-1,000 sq ft EC unit has a median price of $1.48 million, while a similar-sized private condo unit has a median price of $2.1 million. The pricing factor, along with the fact that buyers do not need to dispose of their existing homes before making their purchase, help to sustain demand for ECs, he says. This is especially true for HDB owners who do not need to pay additional buyers’ stamp duty (ABSD) when purchasing a new EC. Furthermore, EC buyers are able to opt for the Deferred Payment Scheme (DPS) and pay a slightly higher purchase price. Under the DPS, buyers only need to pay a deposit, with their loan being deferred until the EC is completed. This helps them avoid servicing two mortgages while waiting for their new home to be completed. ERA’s Lim adds that the slow and strategic roll out of new EC launches across different locations — Tampines, Pasir Ris, and Tengah — will cater to the housing needs of Singaporeans. Lastly, OrangeTee Group’s chief researcher and strategist Christine Sun found that the price gap between ECs and 99-year leasehold private condos in the OCR has narrowed in recent years. The gap was 49.4% in 2023, 44.2% in 2024, and 43.6% in January 2025. She believes that the rising prices of ECs, which have increased by 9.6% from 2023 to January 2025, are the main reason for this gap narrowing. The increase is significantly higher than the 5.3% increase for 99-year leasehold private condos in the OCR over the same period. According to Sun, buyers find ECs a more affordable option compared to 99-year leasehold private condos in the same area. Additionally, higher costs and regulations mean that buyers now have to shell out more upfront costs when purchasing an EC. Despite this, buyers are still not deterred by the higher prices of ECs due to their greater affordability and lower pricing psf. The abundant availability of ECs that do not require ABSD and offer the DPS also help to sustain demand. The upcoming launch of three new EC projects this year is also expected to cater to the needs of buyers across the island. As such, demand for ECs is set to continue in the future.”
Investing in real estate is a decision that requires careful consideration, and one of the key factors to keep in mind is location. This is particularly true in the case of Singapore. Condos located in central areas or in close proximity to essential amenities, such as schools, shopping malls, and public transportation hubs, have a tendency to appreciate in value. Prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown growth in property values over the years. Families are drawn to these areas due to their accessibility to good schools and educational institutions, making condos in these locations highly sought after and increasing their investment potential. As you consider investing in Singapore, keep in mind the importance of location, and consider exploring options such as Singapore Condos in these prime areas.