Resale Executive Condominium (EC) average transaction prices rose 11.5% y-o-y in Q4 last year

Resale prices of Executive Condominiums (ECs) have continued to climb, with the average transaction price in the fourth quarter of last year rising by 11.5% year-on-year, while a handful of units have seen per-square-foot (psf) prices close to those of mass-market new private homes.

Data shows that 1,951 Executive Condominium (EC) units changed hands last year, down 4.9% from 2022. The average transaction price in Q4 last year stood at $1,275 psf, reflecting an 11.5% year-on-year increase.

In November last year, a unit at Esparina Residences changed hands for $2.4 million, or $1,756 psf, setting a new benchmark for resale ECs.

In addition, at least four other units at Esparina Residences and Hundred Palms Residences were transacted at an average price of over $1,600 psf.

Research reports noted that the price gap between resale ECs and mass-market private homes is gradually narrowing, yet buying an EC remains a "value-for-money" homeownership option. This may be because an increasing number of ECs have reached their 10-year mark to become fully privatised, allowing them to be sold to foreign buyers, while their quality and specifications closely mirror those of private condos.

New mass-market private homes in the Outside Central Region (OCR) are currently averaging slightly above $2,000 psf. Although resale ECs—all of which are at least five years old—are edging closer to this price level, analysts believe ECs still offer substantial advantages, and their appeal to buyers is unlikely to wane despite higher prices.

Analysis: Overall EC Resale Market Growth Remains Moderate; Only a Few Units Exceed $1,600 PSF

Only a small minority of resale EC units have commanded average prices of over $1,600 psf, which are considered exceptional cases. This indicates that while the resale EC market sees occasional price peaks, overall growth remains relatively moderate. Prospective buyers looking at these headline transactions should also take the broader EC price landscape into account.

Key advantages of resale ECs include immediate occupancy and comparatively lower prices. EC owners can only sell their homes to Singapore Citizens or Permanent Residents after completing the five-year Minimum Occupation Period (MOP), ensuring that supply enters the resale market in phased intervals.

A unit of around 1,300 sq ft at Esparina Residences was sold last year for $2.4 million ($1,756 psf). In contrast, a similarly sized unit in a new mass-market private condo typically commands launch prices between $2.5 million and $2.9 million. Nevertheless, the future capital appreciation of ECs remains uncertain, and buyers should exercise prudence.

When purchasing an older EC, buyers may need to budget for renovations and contribute to the condo's sinking fund. Furthermore, as the remaining lease shortens, future capital appreciation remains an unknown factor. In such cases, considering a new EC or private condo may be a preferable option.

EC Units Between 800 and 1,200 SQ FT Remain Most Popular

Another advantage of resale ECs is their more generous unit layouts. Currently, the most sought-after EC units range between 800 sq ft and 1,200 sq ft, accounting for 59.7% of total resale transactions last year.

As more ECs reach their five-year MOP and enter the resale market, this is expected to spur demand. However, transaction volumes are likely to remain measured, as the majority of buyers are citizens and PRs. While ECs can be sold to foreigners once they hit the 10-year privatisation mark, higher Additional Buyer's Stamp Duty (ABSD) rates remain a significant hurdle for foreign buyers.