after securing final approval
Mr Chong, a retiree, helped his three sons with some financial support when they were purchasing their homes. His eldest son bought a private condo, while his two younger sons bought executive condos (ECs). According to Mr Chong, buying an EC during a new launch is a smart decision. He says even if you buy shortly after the five-year minimum occupation period (MOP), it is still an excellent entry price.
Mr Chong has experienced both situations. His second son bought a three-bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. “He wanted to buy a four-bedroom unit, but those were snatched up so quickly,” shares Mr Chong.
The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out on the first day of launch at an average price of $841 psf. The EC on Yio Chu Kang Road was completed in 2019. Based on caveats lodged in January and February 2025, the average price of units sold was $1,769 psf, resulting in a 110% price gain in eight years.
Mr Chong bought a four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands, in 2021. The EC was developed by a joint venture between Frasers Property and Lum Chang and was launched in 2013 and completed in 2016. The dual-key unit provides Mr Chong with privacy as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. As a dual-key unit, each apartment has its separate entrance, even though the main entrance is shared.
Mr Chong and his family purchased the unit at $1,000 psf, which was considered a new high at that time, but recent resale prices are even higher. According to Mr Chong, the latest transaction of a 1,206 sq ft, four-bedroom unit at Twin Fountains in February was $1.62 million ($1,344 psf). “Even though you may miss the boat, like my youngest son, and buy in at $1,000 psf, resale prices at Twin Fountains are now 30% higher,” adds Mr Chong.
Last October, City Developments launched the 348-unit Norwood Grand private condo at Champions Way in Woodlands. About 84% of the units were sold during the launch weekend at an average price of $2,067 psf, setting a new benchmark for Woodlands.
Mr Chong attributes the launch of Norwood Grand’s average selling price, which is 53.8% higher than the latest resale price at Twin Fountains, to the revival of interest in the northern region after the announcement of revitalization and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North.
Nevertheless, EC buyers now have to shell out a larger cash outlay due to rising EC prices and caps on loan quantum, according to Eugene Lim, key executive officer of ERA Singapore. For ECs, the monthly household income ceiling is $16,000. Buyers must meet the mortgage servicing ratio (30% cap) and total debt servicing ratio (55% cap) requirements if taking a loan. Furthermore, buyers must be Singapore citizens or permanent residents (PRs) after the five-year MOP, while foreigners are only allowed to purchase ECs in the resale market after the 10th year of obtaining Temporary Occupation Permit (TOP).
Assuming a 30-year-old EC buyer with a household income of $16,000 and a maximum loan tenure of 30 years, the maximum loan amount is approximately $1 million based on the 4% interest rate for mortgage servicing ratio (MSR) stress test, estimates ERA’s Lim.
According to Lim, despite the higher upfront costs, buyers are still interested in ECs because of their affordability and lower price per square foot (psf) compared to 99-year leasehold private condos in the same area. Aside from the lower price relative to new private condos, EC buyers do not have to sell their existing homes before purchasing, notes Lim. Furthermore, HDB upgraders do not have to pay additional buyer’s stamp duty (ABSD) when buying a new EC.
Moreover, EC buyers may choose the deferred payment scheme (DPS) at a slightly higher purchase price. Under the DPS, buyers only need to pay a deposit, with their loan deferred until after the completion of the EC. “This way, buyers do not need to service two mortgages while waiting for the new home to be completed,” reveals Lim.
According to Lim, there is demand for ECs in the market due to their affordability and lower price psf compared to 99-year leasehold private condos in the same location. He attributes the narrowing of the gap between median prices of new ECs and new private condos to the EC prices rising at a quicker rate of 9.6% from 2023 to January 2025, while non-landed home prices in the Outside Central Region (OCR) increased by 5.3% over the same period.
According to Christine Sun, OrangeTee Group chief researcher and strategist, the median price gap between new ECs and new private condos in the OCR has narrowed in the last few years. Based on data from URA Realis, the gap has narrowed from 49.4% in 2023 to 44.2% in 2024 and to 43.6% in January 2025. She believes that the gap will continue to narrow as new private condo median prices for this year may exceed $2,200 psf, as was the case in 2024.
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Mr Chong, please revise the following article.
The elderly retiree Chong provided financial assistance to his three sons while they were settling down in their new homes. His eldest son invested in a private condominium, and Mr Chong’s two younger children bought executive condos (ECs). According to Mr Chong, purchasing an EC during its launch phase is a wise decision. Even if one buys shortly after the five-year minimum occupation period (MOP), the entry price is still attractive.
Mr Chong has personal experience with both scenarios. His second son bought a three-bedroom unit at the 531-unit Hundred Palms Residences, which was launched in July 2017. “He wanted to purchase a four-bedroom unit, but they were quickly snapped up,” Mr Chong shares.
The project, developed by Hoi Hup Realty, received 2,000 e-applications and was sold out on the first day at an average price of $841 psf. The EC located on Yio Chu Kang Road was completed in 2019. Based on caveats lodged in January and February 2025, the average price of units sold was $1,769 psf, showing a 110% price gain in eight years.
In 2021, Mr Chong and his family purchased a 1,399 sq ft, four-bedroom, dual-key resale unit at Twin Fountains, a 418-unit EC in Woodlands. The EC was developed by a joint venture between Frasers Property and Lum Chang and was launched in 2013, and completed in 2016. The dual-key unit provided Mr Chong with privacy as he occupies the one-bedroom studio while his son and family occupy the three-bedroom apartment. As a dual-key unit, each apartment has its own separate entrance, even though the main entrance is shared.
Mr Chong and his family bought the unit at $1,000 psf, which at that time, was considered a new high. However, recent resale prices are even higher. According to Mr Chong, the latest transaction of a 1,206 sq ft, four-bedroom unit at Twin Fountains in February was $1.62 million ($1,344 psf). “Even if you miss the boat, like my youngest son, and we bought in at $1,000 psf, resale prices at Twin Fountains are now 30% higher,” he adds.
In October last year, City Developments launched the 348-unit Norwood Grand private condo at Champions Way in Woodlands. Around 84% of the units were sold during its launch weekend at an average price of $2,067 psf, setting a new benchmark for Woodlands.
Mr Chong points to the launch of Norwood Grand’s average selling price, which is 53.8% higher than the latest resale price at Twin Fountains, to show the renewed interest in the northern region after the announcement of revitalization and new infrastructure, including the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North.
However, due to rising EC prices and caps on loan quantum, EC buyers now have to pay a larger cash outlay, according to Eugene Lim, key executive officer of ERA Singapore. For ECs, the monthly household income ceiling is $16,000. Buyers must meet the mortgage servicing ratio (MSR) (30