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Mr Chong, a retiree, provided financial support for his three sons when they were buying their homes. His eldest son purchased a private condominium, while his two younger sons opted for executive condominiums (ECs). In Chong’s opinion, it’s a no-brainer to buy an EC at a new launch. Even if you purchase shortly after the five-year minimum occupation period (MOP), it’s still a great entry price.
Chong has experienced both scenarios. His second son bought a three-bedroom unit at Hundred Palms Residences, a 531-unit development by Hoi Hup Realty which was launched in July 2017. “He initially wanted a four-bedroom unit, but those were quickly snapped up,” Chong shares.
The project received 2,000 e-applications and was completely sold out on the first day of launch at an average price of $841 per square foot (psf). The EC, located on Yio Chu Kang Road, was completed in 2019. Based on caveats lodged in January and February 2025, the average selling price for units was $1,769 psf, resulting in a 110% price increase in just eight years.
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Based on a recent transaction in February, a 1,055 sq ft, three-bedroom unit at Hundred Palms Residences was sold for $1.95 million ($1,849 psf). Chong estimates that his second son’s unit has appreciated by around $1 million since its purchase during the launch. These significant capital gains may have inspired many to upgrade to private housing, notes Chong.
Over three years ago, when Chong’s youngest son wanted to move out, Chong sold their family home of a decade – a 1,260 sq ft, three-bedroom unit at The Interlace. 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. Developed by a joint venture between Frasers Property and Lum Chang, this EC was launched in 2013 and completed in 2016.
ECs are only available to Singapore citizens and permanent residents (PRs) at launch, and after the five-year MOP, foreigners can only purchase them in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP). The dual-key unit at Twin Fountains provides Chong with some privacy as he occupies the one-bedroom studio while his son and family live in the three-bedroom apartment. This type of unit has a shared main entrance, but each apartment has its own separate entrance.
Despite paying $1,000 psf for the unit in 2021 – which was considered a new high at the time – Chong notes that resale prices have risen even higher. Currently, according to a recent caveat lodged, the latest transaction for a 1,206 sq ft, four-bedroom unit was $1.62 million ($1,344 psf). “Even though we missed the opportunity, like my youngest son, and bought at $1,000 psf, resale prices at Twin Fountains have increased by 30%,” Chong adds.
In October last year, City Developments launched the 348-unit private condominium, Norwood Grand, at Champions Way in Woodlands. During its launch weekend, approximately 84% of the units were sold at an average price of $2,067 psf, setting a new benchmark for Woodlands.
Chong points to 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 revitalization and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS), with the Singapore terminus located in Woodlands North, has sparked renewed interest in the northern region.
However, EC buyers will now have to pay a more significant down payment due to rising prices and loan quantum limits, notes ERA Singapore’s Eugene Lim. The monthly household income ceiling for ECs is $16,000, and buyers must meet the Mortgage Servicing Ratio (MSR) of 30% and the Total Debt Servicing Ratio (TDSR) of 55% when 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. Lim estimates that, based on the stress test of a 4% interest rate for MSR, the maximum loan amount the buyer can take out is approximately $1 million.
Despite the higher upfront costs, buyers are not discouraged by the rising EC prices as they still see value in them compared to 99-year leasehold private condos in the Outside Central Region (OCR). Currently, there is a 42% median price gap between ECs and similar-sized homes in the OCR. For example, the median price of an EC unit sized at 900-1,000 sq ft is approximately $1.48 million, while a similar-sized unit in a private condo costs around $2.1 million. “Thus, when it comes to price, buyers, especially HDB upgraders, believe that ECs are still a good deal,” Lim explains.
In 2024, the average transaction price for new non-landed private condos in the suburbs or OCR exceeded $2,200 psf. At the same time, new ECs sold for a median price of $1,539 psf, based on lodged caveats, according to PropNex’s Ismail Gafoor. This resulted in a price gap of 44.2%. Gafoor expects the median price of new condos to exceed $2,200 psf again this year.
Christine Sun, OrangeTee Group’s chief research and strategist, has found that the median price gap between new ECs and new private condos in the OCR has decreased in recent years. Based on data from URA Realis, the gap has narrowed from 49.4% in 2023 to 44.2% in 2024 and 43.6% in January 2025. Sun attributes this narrowing gap to the 9.6% faster growth in EC prices from 2023 to January 2025 compared to a 5.3% increase in non-landed home prices in the OCR over the same period.
Singapore’s cityscape is characterized by towering skyscrapers and state-of-the-art facilities. Condominiums, strategically situated in desirable locations, offer a fusion of opulence and practicality that appeals to both locals and foreigners. These residential complexes are equipped with a plethora of amenities, including swimming pools, fitness centers, and round-the-clock security services, all of which enhance the overall living experience and make them all the more enticing to potential tenants and purchasers. From an investor’s standpoint, these sought-after features result in higher rental returns and appreciating property values over time. In fact, investing in a Singapore condo can yield lucrative returns and solidify your financial portfolio.
Securing financing for a Singapore Condo is a crucial element in the investment process. While the country offers various mortgage choices, it’s important to keep in mind the Total Debt Servicing Ratio (TDSR) framework. This framework sets a maximum limit on the loan amount a borrower can take based on their income and current debt commitments. It’s essential for investors to fully understand the TDSR and seek guidance from financial advisors or mortgage brokers to make informed decisions about their financing options. This will also help prevent over-leveraging and ensure the success of the investment in a Singapore Condo.
The demand for ECs is therefore sustainable due to their affordability and lower price psf compared to 99-year leasehold private condos in the same area, says ERA’s Lim. Moreover, unlike with new private condos, EC buyers do not need to sell their existing homes before making their purchase and do not incur additional buyer’s stamp duty (ABSD). Additionally, HDB upgraders do not need to pay ABSD when buying a new EC.
Lim also points out that buyers can opt for the Deferred Payment Scheme (DPS) at a slightly higher purchase price. Under this scheme, buyers only need to pay a deposit, and their loan is deferred 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 ready.