Executive Condominiums (ECs) in Singapore: Are They Still Worth Investing in 2025?
Executive condominiums (ECs) have become a prominent part of Singapore's housing landscape, bridging the gap between public and private housing. With the rising costs in both the HDB and private property markets, many are wondering if investing in ECs is still a worthwhile venture in 2025. This article examines the current state of the EC market, exploring their profitability, market dynamics, and future potential.
What are Executive Condominiums?
Introduced in 1996, ECs were designed for "sandwich class" households whose income exceeded the BTO flat ceiling but found private condominiums unaffordable. Developed and sold by private developers, ECs offer amenities similar to private condominiums, such as swimming pools, gyms, and function rooms. However, they are subject to specific regulations by the HDB.
Eligibility and Regulations
Buyers of ECs must meet certain criteria, including:
-
Forming a family nucleus.
-
Being Singaporean citizens.
-
Having a monthly household income not exceeding $16,000.
-
Fulfilling a minimum occupation period (MOP) before resale.
EC Profitability: A Look at Past Performance
ECs have gained a reputation for high profitability upon resale. For example, consider The Brownstone EC, which obtained its TOP in 2019. To date, it has seen 58 profitable transactions with zero losses. Some units have even yielded profits ranging from $800,000 to $1.14 million, representing a significant annualized return. Such profits have been observed in ECs across various locations.
Affordability Compared to Private Condominiums
One of the main attractions of ECs is their relative affordability compared to private condominiums. In 2025, the average price of a new EC was approximately $1627 PSF, while new 99-year leasehold private condos in the Outside Central Region (OCR) averaged $2280 PSF. This represents roughly a 40% price difference.
-
New EC (2025): \$1627 PSF (approximately)
-
New 99-year Leasehold Private Condo (OCR): \$2280 PSF (approximately)
A decade ago, the average price of a new EC was approximately $801 PSF, indicating a near doubling of prices in ten years. This increase is higher than the 51% increase in resale condo prices during the same period, suggesting an advantage for new ECs, despite their high prices.
Limited Supply and Strong Demand
The supply of ECs is limited, with authorities releasing only a few EC sites in recent years. This limited supply, combined with strong demand from HDB upgraders and first-time buyers, drives robust sales. For instance, OLA at Tampines was fully sold within a month at an average selling price of $1766 PSF after a 90% sales rate shortly after its launch in the first quarter of 2025.
Upcoming EC: Autoplace in Tengah
An upcoming EC, Autoplace, developed by Hoi Hup and Sunwei, is slated to launch in July with 600 units of 3-bedroom and 4-bedroom configurations. Located in Tengah, it offers a 4-minute walk to the future Tengah Park and Bukit Batok West MRT station.
ECs in 2025: Buy or Not?
In 2025, only two ECs were launched: Autoplace in Tengah and one in Jalan Loyang Besar. The remaining EC sites will have to wait till 2026 due to the 15-month wait-out period. While EC prices have significantly increased over the past decade, they remain an attractive option for eligible buyers.
Analyzing Autoplace's Expected Selling Price
Novo Place, another EC, was sold at 703 PSF PPR (price per square foot per plot ratio), with a break-even cost of 1292 PSF. With an average selling price of 1656 PSF, the profit margin is a healthy 28%. Since Autoplace has a slightly lower land cost, its expected selling price is likely to be $1650 PSF or higher.
Comparing ECs to Mass-Market New Homes
Based on break-even costs, the expected selling price for an EC, assuming a 28% margin, could be around $1,007 per square foot, which is still cheaper than mass-market new homes at $2,000 per square foot.
Performance Comparison: A Decade Ago vs. 2025
-
A Decade Ago: New homes were 47% more expensive than ECs, and resale condos were 34% more pricey.
-
2025: New homes are 40% more expensive than ECs, while the gap between resale condos and new ECs has narrowed to 0%.
While ECs were undeniably a must-buy a decade ago, the narrowing gap between resale condos and new ECs means that future ECs may not yield the same level of profit as before.
Conclusion: A Compelling Option with Considerations
Executive condominiums remain a compelling option in Singapore's property market due to their affordability, quality amenities, and potential for capital appreciation. The robust resale profits observed in recent years highlight their investment appeal, especially for first-time buyers and HDB upgraders seeking private housing. However, potential buyers should carefully consider the restrictions and potential for capital appreciation post-MOP. Buying a home that also offers potential capital gains is a bonus to consider.