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The proud father, Mr. Chong, had always supported his three sons when it came to setting up their homes. While his eldest son opted for a private condominium, his two younger sons purchased executive condominiums (ECs). According to Mr. Chong, buying an EC at a new launch was a clear choice, even if it meant making the purchase shortly after the five-year minimum occupation period (MOP). He believed that it was still a good entry price.
Mr. Chong had witnessed both scenarios firsthand. His second son had purchased a three-bedroom unit at the Hundred Palms Residences, a 531-unit development by Hoi Hup Realty that was launched in July 2017. However, his son had originally wanted a four-bedroom unit, but they were quickly snatched up. Despite this setback, Mr. Chong’s son has seen significant capital gains as the development was completely sold out on the first day at an average price of $841 per square foot (psf). The EC, located on Yio Chu Kang Road, was completed in 2019. Based on recent transactions in January and February, the average selling price was $1,769 psf, an impressive 110% increase in just eight years.
Mr. Chong also shared that his second son’s EC unit, which measures 1,055 square feet, has appreciated by about $1 million since its launch. These impressive capital gains have motivated many to upgrade to private housing, according to Mr. Chong.
Singapore’s cityscape is characterized by soaring skyscrapers and state-of-the-art infrastructure, giving it a modern and cosmopolitan feel. One of the most prevalent features of this landscape is the presence of luxurious condos, strategically located in prime areas. These condos offer a perfect fusion of opulence and convenience, making them a sought-after choice for both locals and expatriates. The array of amenities they provide, including swimming pools, gyms, and top-notch security services, elevate the standard of living and make them highly desirable to potential tenants and buyers. Additionally, investors stand to benefit greatly from these condos, as these attractive features result in high rental returns and significant appreciation of property values over time. For those interested in the dynamic real estate market of Singapore, Singapore Condo is a name that cannot be overlooked.
After living in The Interlace for the past decade, Mr. Chong sold his 1,260 square feet, three-bedroom unit in 2017 when his youngest son decided to set up his own home. In 2021, the Chong family purchased a 1,399 square feet, four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands. The development was completed in 2016 and was a joint venture between Frasers Property and Lum Chang. This dual-key unit provides Mr. Chong with privacy as he occupies the one-bedroom studio, while his son and family reside in the three-bedroom apartment. Each apartment has its own separate entrance, while the main entrance is shared.
Despite purchasing the unit at a record high price of $1,000 psf in 2021, Mr. Chong pointed out that recent resale transactions at Twin Fountains have exceeded this price. For example, in February, a four-bedroom unit measuring 1,206 square feet was sold for $1.62 million, which translates to $1,344 psf. Mr. Chong believes that even if buyers miss the opportunity to buy at launch, as his son did, they can still reap significant gains in the resale market. The current prices at Twin Fountains are 30% higher than the purchase price in 2021.
Last October, City Developments launched Norwood Grand, a 348-unit private condominium in Woodlands. About 84% of the units were sold during its launch weekend at an average price of $2,067 psf, setting a new benchmark for Woodlands. According to Mr. Chong, this launch, with its average selling price that is 53.8% higher than the latest resale price at Twin Fountains, has generated renewed interest in the northern region due to the announcement of revitalization and new infrastructure, such as the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North.
While the prices of ECs continue to rise, and there are caps on loan quantum, Mr. Eugene Lim, the key executive officer of ERA Singapore, believes that demand for these properties is still sustainable due to their affordability and lower price per square foot compared to 99-year leasehold private condominiums in the same area. Additionally, buying an EC does not require buyers to dispose of their existing home and incur additional buyer’s stamp duty (ABSD), making it an attractive option for HDB upgraders. Moreover, EC buyers can opt for a deferred payment scheme, where they only need to pay a deposit, with their loan only starting after the completion of the EC. This helps buyers avoid servicing two mortgages simultaneously while waiting for their new home to be completed.
While three new EC launches are expected this year, Mr. Lim believes that they are strategically spaced out across different locations, including Tampines, Pasir Ris, and Tengah, catering to the housing needs of Singaporeans across the island. Despite higher upfront costs, buyers are not deterred by the rising prices of ECs as they still see value in these properties, particularly HDB upgraders who are not subjected to ABSD and have the option of the DPS. Additionally, there is still a 42% median price gap between similar-sized homes in the EC market and 99-year leasehold private condominiums in the Outside Central Region (OCR).
Ms. Christine Sun, the Chief Researcher and Strategist at OrangeTee Group, has observed that this gap has been narrowing in recent years, from 49.4% in 2023 to 44.2% in 2024, and 43.6% in January 2025. She attributes this to the fact that EC prices have risen at a faster rate of 9.6%, compared to a 5.3% increase in non-landed home prices in the OCR over the same period.
As new non-landed private condominium prices in the OCR crossed the $2,200 psf mark in 2024, new ECs were sold at a median price of $1,539 psf based on caveats lodged, according to Mr. Ismail Gafoor, the CEO of PropNex. This reflects a price gap of 44.2%. He expects that the median price of new condos this year will exceed $2,200 psf.