Are ECs still a good buy?

Retiree Mr Chong provided some support for his three sons when they were setting up their homes. His eldest son purchased a private condo, while his two younger sons purchased executive condos (ECs). “If you’re buying an EC at a new launch, it’s a no-brainer,” he says. “Even if you buy shortly after the five-year MOP [minimum occupation period], it’s still a good entry price.”

Chong has experienced both scenarios. His second son had purchased a three-bedroom unit at the 531-unit Hundred Palms Resudebces, which was launched in July 2017. “He wanted to buy a four-bedroom unit, but those were snapped up so quickly,” relates Chong.

The project 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, the average price of units sold was $1,769 psf, translating to a 110% price gain in eight years.

Based on the selling price of $1.95 million ($1,849 psf) for a 1,055 sq ft, three-bedroom unit that changed hands at Hundred Palms in February, Chong reckons his second son has seen his EC unit appreciate by about $1 million from the time he purchased at launch. Such capital gains may have motivated many to upgrade to private housing, notes Chong.

Hundred Palms Residences by Hoi Hup Realty, where all 531 units in the EC project were sold out in a single day at an average price of $841 psf (Photo: Agents)

Over three years ago, when Chong’s 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 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 open only to buyers who are Singapore citizens or permanent residents (PRs) at launch and after the five-year MOP. Foreigners can buy ECs in the resale market only after the 10th year of obtaining Temporary Occupation Permit (TOP).

The dual-key unit affords 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.

The 418-unit Twin Fountains by a joint venture between Frasers Property and Lum Chang was completed in 2016 (Photo: Lum Chang website)

Even though they paid $1,000 psf for the unit in 2021 — which at that time was considered a new high — recent resale prices are even higher, 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). “Even if you miss the boat, like my youngest son, and 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.

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 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.

Rising EC prices, narrowing price gap with condos

However, amid rising EC prices and caps on loan quantum, EC buyers will now have to shell out 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 if taking a loan.

Assume a 30-year-old EC buyer with 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 the buyer can take on 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.

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 (Photo: Samuel Isaac Chua/EdgeProp Singapore)

For instance, 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,” 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.

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.

Three-bedroom premium showflat at the 760-unit Aurelle of Tampines sales gallery which is targeted for launch on Mar 8 (Photo: Samuel Isaac Chua/EdgeProp Singapore

Affordability, deferred payment

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.

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, 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, they only need to pay a deposit, with their loan 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.  “With no ABSD payable and the availability of the DPS, HDB owners find it easier to upgrade to a new EC.”

He adds: “Although three new EC launches are 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.”