amid Sarin family feud
Mr Chong, a retiree, provided support for his three sons when they were setting up their homes. His eldest son bought a private condo while the younger ones bought executive condos (ECs). According to him, 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 had experienced both situations as his second son had bought a three-bedroom unit at the 531-unit Hundred Palms Residences during its launch in July 2017. Due to its popularity, the four-bedroom units were snapped up quickly. This project by Hoi Hup Realty had received 2,000 e-applications and was sold out on the first day at an average price of $841 psf. The EC located on Yio Chu Kang Road was completed in 2019 and based on caveats lodged in January and February 2025, the average price of units sold was $1,769 psf, resulting in a 110% price gain in just eight years.
Mr Chong’s second son had bought a three-bedroom unit at the Hundred Palms Residences and according to Mr Chong, the unit has appreciated by about $1 million since its launch in 2017. This capital gain may have motivated many to upgrade to private housing, Mr Chong says.
Three years ago, when Mr Chong’s youngest son decided to set up his own home, Mr 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 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 buyers who are Singapore citizens or 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 offers Mr Chong privacy as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. Each apartment has its own separate entrance, even though the main entrance is shared.
Despite paying $1,000 psf for the unit in 2021, which was considered a new high at that time, recent resale prices are even higher, Mr Chong points out. 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).
Mr Chong 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, as EC prices are rising and there are caps on loan quantum, buyers will now have to pay a larger cash outlay, according to Eugene Lim, key executive officer of ERA Singapore. The monthly household income ceiling for ECs is $16,000 and buyers have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if they take a loan. For example, if a 30-year-old EC buyer has 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 he or she can take on is around $1 million, estimates Mr Lim.
Despite the higher upfront costs, buyers are not deterred by the higher prices of ECs as 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), Mr Lim says. 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,” Mr 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. 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. That reflects a price gap of 44.2%. He expects the median price for new condos this year “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 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.
To sustain demand, ECs must remain affordable and have a lower price psf compared to 99-year leasehold private condos in the same area, says ERA’s Mr Lim. Aside from the lower price relative to new private condos, EC buyers do not need to dispose of their existing home before making their purchase. 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, they only need to pay a deposit with their loan deferred until after the completion of the EC. Buyers will not need to service two mortgages while waiting for the new home to be completed, says Mr Lim.
Although there are going to be three new EC launches this year, they are strategically spaced out across different locations – Tampines, Pasir Ris, and Tengah – to cater to the housing needs of Singaporeans across the island.
Singapore is a popular choice for condo investment, but it’s important to also consider the government’s property cooling measures. Over the years, the Singaporean government has implemented various measures to discourage speculative buying and maintain a stable real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the short-term profitability of investing in Singapore condos, they ultimately contribute to the long-term stability of the market, creating a safer environment for investment. Singapore Condo is a great addition to this thriving market.