High Demand and Tight Supply Push New EC Prices Higher Year-on-Year

A limited supply of new Executive Condominiums (ECs) has continued to drive prices upward, pushing the average price per square foot (psf) for new units in the first nine months of this year up by 3.8% from the whole of last year to $1,460.

According to the latest research report, the average psf price of new ECs was $1,329 in 2022, rising by 5.8% a year later to $1,406.

In the first nine months of this year, the average psf price reached $1,460, 3.8% higher than last year's full-year average and 24.1% higher than the $1,176 recorded in 2021.

Units transacted between $1,300 and $1,399 psf accounted for 20%, while another 20% were sold between $1,400 and $1,499 psf. Units transacted below $1,300 psf made up just 8.8%.

Half of New EC Units Sold in the First Nine Months Transacted at an Average of at Least $1,500 PSF

Among the new EC units sold in the first nine months of the year, half transacted at an average psf price between $1,500 and $1,599, demonstrating buyers' willingness to pay higher prices for ECs.

ECs remain popular among buyers, particularly young families and upgraders, as they offer a unique stepping stone from public housing to private residential property. To maintain a balance between supply and demand, the government has imposed restrictions, such as requiring developers to launch projects only 15 months after securing the site or upon completing foundation works, whichever is earlier.

Rising construction costs have also influenced launch prices, as developers must factor these costs into their pricing strategies for new EC projects.

Last year, only one EC project—Altura—was launched, which has sold 95.8% of its units to date, while Lumina Grand, launched in the first quarter of this year, has sold 83.2% of its units. This demonstrates healthy sentiment in the EC market and underscores buyers' confidence in the future capital growth of these developments.

Due to the limited supply of new ECs, combined with government regulations requiring owners to fulfil a five-year Minimum Occupation Period (MOP) before reselling and full privatisation into private housing after 10 years, the price gap between new and resale ECs has progressively narrowed.

According to statistics from SRI, the average psf price for new ECs stood at $1,404 in the third quarter, compared to $1,307 for resale ECs over the same period—a narrow gap of 6.9%.

Transaction volume for resale ECs aged 10 years and above surged by 63.8% year-on-year to 375 units in the first nine months of the year. In contrast, transaction volume for units under 10 years old saw a more modest increase, edging up 1.8% year-on-year to 1,181 units.

Among projects aged 10 years and above, The Dew in Bukit Batok recorded the highest price appreciation, with its average psf rising 20.2% year-on-year to $1,160 in the first nine months. The Eden at Tampines saw the smallest year-on-year increase, with psf prices rising by just 8.5% to $1,139.