Are Ecs Still Good Buy
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Mr. Chong, a retiree, offered financial support for his three sons when they were looking to buy their own homes. His eldest son opted for a private condominium, while his younger sons went for executive condominiums (ECs). According to Mr. Chong, “If you’re buying an EC at a new launch, it’s a no-brainer. Even after the five-year MOP, it’s still a great entry price.”
Mr. Chong has personal experience with this advice. His second son bought a three-bedroom unit at the 531-unit Hundred Palms Residences during its launch in July 2017. However, due to the high demand, he could only secure a three-bedroom unit instead of the desired four-bedroom one. The project, developed by Hoi Hup Realty, received 2,000 e-applications and was fully sold on the first day at an average price of $841 per square foot. The EC, located on Yio Chu Kang Road, was completed in 2019. Based on recent property transactions in 2025, the average price of units sold was $1,769 per square foot, which translates to a 110% price gain in just eight years.
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Based on the recent sale of a 1,055 square foot, three-bedroom unit at Hundred Palms in February at a selling price of $1.95 million ($1,849 per square foot), Mr. Chong estimates that his second son has seen his EC unit appreciate by approximately $1 million since its initial purchase. This significant capital gain has likely motivated many buyers to upgrade to private housing, notes Mr. Chong.
In 2021, when Mr. Chong’s youngest son decided to purchase his own home, Mr. Chong sold his 1,260 square foot, three-bedroom unit at The Interlace, which had been their family home for the past decade. In the same year, the Chongs bought a 1,399 square foot, four-bedroom dual-key unit at Twin Fountains, a 418-unit EC in Woodlands. The development was a joint venture between Frasers Property and Lum Chang, and it was launched in 2013 and completed in 2016.
ECs are only available to Singapore citizens or permanent residents (PRs) at the time of launch and after the five-year MOP. Foreigners are only eligible to purchase ECs in the resale market after the 10th year of obtaining the Temporary Occupation Permit (TOP). The dual-key unit at Twin Fountains provides Mr. Chong with the privacy of his own one-bedroom studio while his son and family live in the three-bedroom apartment. Each apartment has a separate entrance, although the main entrance is shared.
Despite paying a high price of $1,000 per square foot in 2021, which was considered a new record at the time, Mr. Chong points out that recent resale prices are even higher. For example, the latest transaction in February for a 1,206 square foot, four-bedroom unit was $1.62 million ($1,344 per square foot). “Even though we missed the initial launch, like my youngest son, and bought at $1,000 per square foot, the current resale prices at Twin Fountains are 30% higher,” says Mr. Chong.
In October 2021, City Developments launched Norwood Grand, a 348-unit private condominium at Champions Way in Woodlands. During its launch weekend, about 84% of the units were sold at an average price of $2,067 per square foot, setting a new benchmark for Woodlands.
Mr. Chong highlights the average selling price of Norwood Grand, which is 53.8% higher than the latest resale price at Twin Fountains. He believes that the announcement of revitalization efforts and planned infrastructure, such as the Johor Bahru-Singapore Rapid Transit System (RTS) with a Singapore terminus in Woodlands North, has sparked renewed interest in the northern region.
However, as EC prices continue to rise and loan quantum caps are implemented, EC buyers will have to prepare for a larger cash outlay, explains Eugene Lim, key executive officer of ERA Singapore. For ECs, the monthly household income ceiling is $16,000, and buyers must meet the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) requirements if taking out 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 on is approximately $1 million, taking into account the stress test of a 4% interest rate for MSR, according to Mr. Lim.
However, despite the higher upfront costs, buyers are still drawn to the relatively lower prices of ECs compared to 99-year leasehold private condominiums in the Outside Central Region (OCR), says Mr. Lim. Furthermore, there is still a 42% median price gap between ECs and similar-sized 99-year leasehold private condos, making ECs more attractive to HDB upgraders in absolute terms.
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In 2024, the average transaction price of new non-landed private condos in the suburbs (OCR) surpassed $2,200 per square foot. In comparison, new ECs in 2024 were sold at a median price of $1,539 per square foot, based on lodging caveats, according to Ismail Gafoor, CEO of PropNex. This translates to a price gap of 44.2%. Mr. Gafoor anticipates that the median price for new condos will “tip over $2,200 per square foot again” this year.
Christine Sun, OrangeTee Group’s chief researcher and strategist, observed that the median price gap between new ECs and new private condos in the OCR has narrowed in recent years. According to data from URA Realis, this gap decreased from 49.4% in 2023 to 44.2% in 2024 and further to 43.6% in January 2025.
Ms. Sun attributes this narrowing gap to the faster pace of EC price increases at 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.
Furthermore, Mr. Lim points out that the demand for ECs remains stable due to their affordability and lower price per square foot compared to 99-year leasehold private condos in the same area. Additionally, EC buyers do not have to sell their existing homes before making their EC purchase, and HDB upgraders are not subject to additional buyers’ stamp duty (ABSD) when buying a new EC. Moreover, buyers can opt for the Deferred Payment Scheme (DPS), which allows them to pay a slightly higher purchase price and defer their loan until after the completion of the EC. This way, buyers do not have to service two mortgages while waiting for their new home to be completed. With these advantages, HDB owners find it easier to upgrade to a new EC.
Although three new EC launches are scheduled for this year, they are strategically spaced out in different locations, including Tampines, Pasir Ris, and Tengah, to cater to the housing needs of Singaporeans across the island.