Why Singapore’s EC prices continue to climb year after year

The 9M24 average unit price is already 3.8% higher than the 2023 record.

The limited availability of newly launched exclusive condominiums has consistently pushed prices upward over the past years, rising from $1,329 psf in 2022 to $1,460 psf in the first nine months of 2024 (9M24).

The average unit price in 9M24 is already 3.8% higher than the average price of $1,406 psf in 2023, reported Singapore Realtors Inc. (SRI).

SRI also reported that the prices of half (50%) of EC units sold in 9M24 ranged from $1,500 psf to less than$1,600 psf.

"This trend reflects a growing willingness amongst buyers to invest at these price points, driven by the perceived value and strategic location of these developments," SRI said.

Even with price levels rising, SRI said ECs remain attractive to buyers because its features are a hybrid of public and private housing, something that buyers are also increasingly prioritising.

"Data clearly demonstrates the robust appeal of ECs, particularly as more buyers recognise their value in terms of location and strategic features," SRI said.

The appeal of executive condominiums (ECs) extends beyond new launches, with buyers increasingly interested in resale units as well, leading to a narrowing price gap.

Data from SRI showed that the average unit price for resale ECs stood at $1,307 psf, a 6.9% difference from new ECs priced at $1,404 psf as of Q3.

According to SRI, the limited supply of new ECs and regulatory conditions, such as the 5-year Minimum Occupation Period (MOP) and the 10-year privatisation requirement, have contributed to the narrowing price gap between new and resale ECs.

According to SRI, buyers are actively purchasing units 10 years or older from their Temporary Occupation Permit (TOP), leading to a 63.8% year-on-year increase in sales of these mature units.

"The systematic progression from a new EC to a fully privatised property provides a structured path for property owners, offering the security of a stable community in the early years, followed by the potential for value appreciation as the property matures and becomes accessible to a wider target audience," SRI said.