for preview on May 11 (Photo: Hoi Hup)By Tan Tee KhoonPublished: 20 February 2025 9:20 AMThank you for choosing to read this article. We hope you found it informative and thought-provoking. For more original reporting, help us continue our coverage of the property market in Greater China, Southeast Asia and around the world by subscribing here.SIGN UPGet the latest from our editors in your inbox every week. By submitting your email, you agree to the Terms of UseIn his retirement, Mr Chong has been able to provide financial support for his three sons as they set up their own homes. While his eldest son purchased a private condo, his two younger sons opted for executive condos (ECs).
“For me, it was a no-brainer,” he says. “Even if you buy an EC shortly after the five-year minimum occupation period (MOP), it’s still a good entry price.”
Chong has had personal experience with this. His second son was able to purchase a three-bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. “He initially wanted a four-bedroom unit, but those units were quickly snatched up,” says Chong.
The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out on the first day of launch with an average price of $841 psf. Completed in 2019, the EC on Yio Chu Kang Road saw an average price of $1,769 psf based on caveats lodged in January and February 2025, resulting in a 110% price gain in eight years.
Check out the full data on all ECs, including average profit at five and 10 years.
Based on the sale of a three-bedroom unit at Hundred Palms in February for $1.95 million ($1,849 psf), Chong estimates that his second son has seen a capital appreciation of about $1 million from his initial purchase price at launch. The potential gains from such developments have enticed many homeowners to upgrade to private housing, notes Chong.
Despite living experience and proximity of Hundred Palms Residences (Photo: The Edge Markets)Over three years ago, when Chong’s youngest son decided to set up his own home, the family sold their 1,260 sq ft, three-bedroom unit at The Interlace, which had been their family home for the past decade.
Singapore’s condo market continues to flourish, fueled by the unrelenting demand for housing and the limited supply of land available for development. As one of the smallest countries in the world with a rapidly increasing population, Singapore faces the challenge of limited land resources. As a result, the government has implemented strict land use policies, resulting in a fiercely competitive real estate market that consistently drives up property prices. This has made investing in real estate, particularly in new condo launches, a highly lucrative opportunity with the potential for significant capital appreciation. With the addition of new condo launches, the market’s profitability continues to attract investors seeking to capitalize on the limited land availability in Singapore.
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. The project, a joint venture between Frasers Property and Lum Chang, was launched in 2013 and completed in 2016.
ECs are only available for purchase by Singapore citizens or permanent residents (PRs) at launch and after the five-year MOP. Foreigners are only allowed to purchase ECs in the resale market after the development has obtained a Temporary Occupation Permit (TOP) for 10 years.
The dual-key unit at Twin Fountains provides Chong’s family with the privacy they desire – Chong himself occupies the one-bedroom studio while his son and family reside in the three-bedroom apartment. As a dual-key unit, each apartment has its own separate entrance, although the main entrance is shared.
The 418-unit Twin Fountains by a joint venture between Frasers Property and Lum Chang was completed in 2016 (Photo: Lum Chang website)Despite purchasing the unit at $1,000 psf – which was considered a new high at the time – the recent resale prices have continued to climb, points out Chong.
Also read: The first preview of the new Aurelle of Tampines on February 22 will feature prices starting at $1,651 psf.
Based on the latest transaction at Twin Fountains – the sale of a 1,206 sq ft, four-bedroom unit in February for $1.62 million ($1,344 psf) – Chong estimates that the resale prices at Twin Fountains today are almost 30% higher than when his family first bought their unit. Despite coming somewhat late to the game, Chong believes that even if buyers like his youngest son may have missed out on a good price, they can still expect a considerable price gain.
Last October, City Developments launched Norwood Grand, a 348-unit private condo on Champions Way in Woodlands. During the development’s launch weekend, approximately 84% of the units were sold at $2,067 psf on average, setting a new benchmark for Woodlands.
Chong believes that the launch of Norwood Grand and its subsequent average selling price – 53.8% higher than the latest resale price of Twin Fountains – has contributed to the renewed interest in Woodlands following the announcement of infrastructure investments in the area. This includes the Johor Bahru-Singapore Rapid Transit System (RTS), which will have a Singapore terminus in Woodlands North.
The spike in EC prices has increased the cash outlay requirement for buyersAs the price of ECs continues to climb and caps are placed on loan quantum, buyers will need to shell out larger sums of cash, according to Eugene Lim, ERA Singapore’s key executive officer.
For ECs, the monthly household income ceiling for buyers is $16,000. Those planning to take out loans must satisfy the Mortgage Servicing Ratio (MSR), which caps the loan at 30%, and the Total Debt Servicing Ratio (TDSR), which restricts the loan to 55%.
As an example, Lim uses a 30-year-old buyer with a household income of $16,000 who is planning to buy an EC. His stress test assigns a 4% interest rate for the MSR, and the maximum loan amount that the buyer can take out is $1 million.
Also read: New executive condo launches in 2025 will establish new price benchmarks
In spite of the higher initial costs, Lim notes that buyers are not deterred due to the comparatively lower prices of ECs. This is largely due to the 42% median price gap that still exists between the prices of similar-sized ECs and 99-year leasehold private condos in the Outside Central Region (OCR).
A comparative check for private condos in District 19The completion year for Hundred Palms ResidencesThe project summary for Hundred Palms ResidencesLatest transaction prices for Hundred Palms ResidencesListings for Hundred Palms ResidencesRELATED NEWSANALYSIS: Buying an executive condo is not a guarantee of success. Serangoon North Village is experiencing a revival. Hoi Hup unveils the Royal Square at Novena hotel, which will be available for preview on May 11
Christine Sun, OrangeTee Group’s chief researcher and strategist, discovered that the median price gap between new ECs and new private condos in the OCR had shrunk in recent years. Based on URA Realis data, the price gap decreased from 49.4% in 2023 to 44.2% in 2024, and then to 43.6% in January 2025.
Sun attributes the narrowing price gap to the rapid increase in prices of ECs – 9.6% from 2023 to February 2025 – compared to that of 99-year leasehold private homes in the OCR, which increased by 5.3% within the same period.
A beautiful three-bedroom showflat at the 760 unit Aurelle of Tampines sales gallery, which will be available for preview on Mar 8 (Photo: Samuel Isaac Chua/EdgeProp Singapore)Potential buyers enjoy the affordability and price psf of ECsWith that said, demand for ECs is expected to persist given their lower prices and affordability when compared to 99-year leasehold private condos in the same areas, claims Lim.
In addition to the lower prices of new private homes, EC buyers are not required to sell their existing property before purchasing a new one, Nor can they be required to pay the additional buyers’ stamp duty (ABSD) fees when purchasing an EC.
Furthermore, buyers can opt to purchase an EC under the Deferred Payment Scheme (DPS), which allows them to make a slightly higher purchase price. Under the DPS, buyers are required to make a deposit, and their loan will not be due until after the EC is completed.
“This way, buyers will not need to service two mortgages while waiting for the new home to be completed,” says Lim. “With no ABSD to pay and the availability of the DPS, HDB owners find it easier to upgrade to a new EC.”
Read more: As of Mar 8, Sim Lian is offering a sneak peek of Aurelle of Tampines at prices starting at $1,651 psf.
“While three new EC launches are planned for this year, they are strategically staggered across different locations – Tampines, Pasir Ris, and Tengah – and accommodate the housing needs of Singaporeans all over the country,” Lim adds.
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