https://www.edgeprop.sg/property-news/retiree-doubles-his-money-8-years-units-sold-avg-110-gain?utm_source=Facebook&utm_medium=social&utm_campaign=EchoHypeSgpSep2021&utm_content=edgenowTo anyone planning to buy properties, it’s always a great idea to do your own research and consult property agents to get the best possible price. That being said, the property market is a constantly changing landscape that requires a lot of attention and careful planning. Mr Chong, a retiree, has been supporting his sons when they were purchasing their own homes. His eldest son bought a private condo, while his two younger sons bought executive condominiums (ECs). According to Mr Chong, buying an EC at a new launch is a no-brainer. Even if you buy it after the five-year minimum occupation period (MOP), you are still getting a good deal.
Mr Chong has experienced both situations. His second son bought a three-bedroom unit at Hundred Palms Residences, which is a 531-unit project that launched in July 2017. His son originally wanted to buy a four-bedroom unit, but they were quickly snapped up. However, even after missing out on the bigger unit, Mr Chong’s son saw a significant price appreciation when he sold it in 2019. Based on caveats lodged in January and February 2025, the average selling price for units in Hundred Palms Residences was $1,769 psf, which translates to a 110% gain in just 8 years.
When Mr Chong’s youngest son was ready to set up his own home, Mr Chong sold his 1,260 sq ft, three-bedroom unit at The Interlace, which was their family home for the last ten years. In 2021, the Chongs bought a 1,399 sq ft, four-bedroom, dual-key unit at Twin Fountains, which is a 418-unit EC in Woodlands. The EC was developed by a joint venture between Frasers Property and Lum Chang, it was launched in 2013 and completed in 2016. This is when Mr Chong and his family began to see how the property market has developed as they bought their new home at a new high of $1,000 psf back in 2021. However, prices for even newer resale units have now gone up to 30%.
The rising EC prices and the narrowing price gap between ECs and condominiums in the Outside Central Region have made it difficult for buyers to purchase their dream home. Buyers will now have to shell out a larger amount of cash due to the caps on the loan quantum. Eugene Lim, the key executive officer of ERA Singapore, says that for ECs, the monthly household income ceiling is $16,000. Buyers also need to meet the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) requirements if they are taking out a loan. Based on calculations, a 30-year-old EC buyer with a household income of $16,000, with a maximum loan tenure of 30 years, the maximum loan amount that can be taken out is $1 million. Despite the higher upfront costs, buyers are still interested in buying ECs due to their lower costs and price per square foot compared to condominiums in the Outside Central Region. With the 99-year leasehold private condos being priced at an average of $2,200 psf, the median price of an EC with a similar sized unit is almost $1.48 million, while a similar-sized unit in a private condo is about $2.1 million.
At the moment, the median price gap between new ECs and new private condos in the Outside Central Region is at 43.6%, which is a significant decrease from 49.4% in 2023. This is because EC prices have risen at a faster pace compared to non-landed home prices in the Outside Central Region. This trend has been observed by Christine Sun, the chief researcher and strategist of OrangeTee Group. Moreover, the rise in EC prices and the caps on the loan quantum have made it difficult for buyers to purchase their dream homes. However, the growing interest in ECs and their affordability can be attributed to the Deferred Payment Scheme (DPS), which allows buyers to defer their loan payment until the EC is completed. This makes it easier for buyers to afford their dream homes and as a result, EC buyers do not need to sell their old homes before purchasing their dream home. These reasons have made it easier for HDB upgraders to upgrade to a new EC. There are three new EC launches that are expected to take place this year – Tampines, Pasir Ris, and Tengah, which will cater to the housing needs of Singaporeans all over the island.