Executive Condominiums: Rising Prices, Strong Demand, and the Future of Affordability

Executive condominiums (ECs) remain a popular choice for Singaporeans, with around 80% of property experts in a recent survey agreeing they are still a valuable investment. Offering a unique blend of public and private housing, ECs promise good capital gain potential and initial affordability. However, as prices continue to rise, many are questioning if they’ll remain accessible to their target market.

Aerial view of Singapore's Marina Bay Sands at tranquil sunset.

Soaring Prices and Shrinking Affordability

EC prices have surged dramatically in recent years. In 2024, new ECs saw a 24.1% increase in price to S$1,460 per square foot, driven by strong demand from young families and upgraders. This has raised concerns, with over half of HDB owners in a 2024 survey deeming these homes unaffordable. Nearly 78% of property professionals worry that middle-income families earning below S$16,000 a month will soon be priced out.

The Demand Still Holds Strong

Despite the price hikes, the demand for ECs is unwavering. The Novo Place EC in Tengah, for example, sold 57% of its units over one weekend at an average price of S$1,654 psf. ECs are increasingly viewed as the “new entry-level private homes,” a sign that buyers are still eager to invest, even with higher costs.

What's Next for ECs?

To ensure ECs remain accessible, experts suggest increasing land sales for development, particularly in suburban areas, and possibly raising the income ceiling to help more families afford them. A balanced approach will be key to maintaining ECs as a viable option for middle-income households in the future.

Conclusion: Balancing Demand and Affordability

ECs are still a sought-after investment, but rising prices present a challenge to their affordability. To keep them within reach for the "sandwiched" households they’re meant to serve, adjustments in policy and land supply will be crucial.