Executive Condominiums (ECs) represent a unique segment in Singapore's housing market, appealing to both first-time buyers and upgraders due to their blend of public and private housing features and relative affordability. These hybrid developments have shown steady price growth, driven primarily by limited supply and strategic regulatory frameworks. For example, EC developers are only allowed to begin sales 15 months after securing a site or once foundation works are completed, whichever is sooner. This strategy helps prevent oversupply and supports price stability, ensuring ECs remain a resilient asset class.

Over the past few years, the pricing landscape for ECs has transformed. In 2022, the average price for new ECs stood at $1,329 per square foot (psf). This rose to $1,406 psf in 2023, marking a year-on-year increase of 5.8%. In the first nine months of 2024, the average price reached $1,460 psf, reflecting a more moderate 3.8% rise. These upward trends underscore the high demand for ECs, particularly among young families and upgraders seeking a bridge between public and private housing with long-term value potential.

Demand for ECs remains robust, as evidenced by impressive take-up rates in recent launches. For instance, Altura, introduced in the third quarter of 2023, reached a 95.8% sales rate. Similarly, Lumina Grand, launched in the first quarter of 2024, achieved 83.2% sales. This strong buyer interest reflects a willingness to invest at higher price points, particularly in developments that boast strategic locations and lifestyle amenities. In 2024, half of the EC units sold ranged between $1,500 and $1,600 psf, highlighting buyers' confidence in the value of these projects.

The resale EC market has also gained momentum, particularly for older ECs that have attained privatized status. Units that are over ten years old saw significant price increases, with the average price rising by 15.5% year-on-year to $1,171 psf in 2024. In comparison, newer resale ECs saw a more moderate price increase of 5.7%. Some projects, like The Dew, recorded an impressive 20.2% increase, which may be attributed to nearby new launches and proximity to popular schools. This trend emphasizes the appeal of matured ECs, especially as they become available to a broader pool of potential buyers.

In recent quarters, the price gap between new and resale ECs has narrowed, reflecting a difference of only 6.9% by the third quarter of 2024. Contributing factors include the limited supply of new ECs and the five-year Minimum Occupation Period (MOP) requirement before resale. This narrowing gap presents ECs as a structured, appealing investment, with the potential for value appreciation as they transition to full privatization.

New developments, like Novo Place at Tengah New Town, continue to attract buyer interest. Positioned near the upcoming Jurong Region Line MRT station, Novo Place benefits from enhanced connectivity and strategic location. Given the limited EC supply and successful launches in nearby areas, this development is likely to generate significant interest among potential buyers.

Overall, ECs have maintained their position as a desirable housing choice within Singapore’s real estate market. Their unique status, regulatory-backed supply alignment, and consistent demand from both new and resale markets ensure ECs remain attractive to buyers. Combining affordability, strategic location, and capital appreciation potential, ECs present an enduring appeal for many Singaporeans.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg