Why Executive Condominium continue to deliver value for owners?

by | Mar 22, 2022

Executive condominiums (EC) were introduced as a hybrid between public and private housing to cater for residents who can afford more than an HDB flat but find private property to be out of their reach. In terms of design and facilities, there is no discernible difference with private condominiums. Likewise, for private condominiums, EC is developed and sold by private developers.

As new EC units are usually sold at a discount compared to nearby new private properties, EC might be a good option for genuine owner-occupied buyers who are prepared to stay for at least 5 years.

Since buying a property is usually a large personal purchase, we would examine further the past executive condominium transactions and the key consideration to purchase a new or resale executive condominium.

  1. Market trend: Analytical comparison between Executive Condominium and Private Condominium
  2. Consideration when buying Executive Condominium new launch
  3. Consideration when buying resale Executive Condominium
  4. The future trend for Executive Condominium
  5. Summary

 

Market trend: Analytical comparison between Executive Condominium and Private Condominium

Executive condominiums (EC) are partially privatized after 5 years of occupation period from completion date. This means owners can sell to Singaporean citizens and permanent residents with no family nucleus requirements. After 10 years of the occupation period, owners can sell to foreigners. There will be no distinction between executive and private condominiums in terms of legal status once EC is fully privatized after 10 years.

Unlike HDB owners, executive condominiums owners have a stake in the land that they are staying on, representing a chance for owners sell their land to private developers via an En Bloc process.

The privatization status of executive condominiums in Singapore are displayed as below:

Status PROJECT TENURE COMPLETION LOWEST PRICE* ($PSF) AVERAGE PRICE* ($PSF) HIGHEST PRICE* ($PSF) LOWEST RENTAL* ($PSF PM) AVERAGE RENTAL*($PSF PM) HIGHEST RENTAL* ($PSF PM)
Fully privatizedEASTVALE99 YRS FROM 19961999---22.43.2
Fully privatizedWESTMERE99 YRS FROM 199619998478789112.32.73.3
Fully privatizedSIMEI GREEN CONDOMINIUM99 YRS FROM 199619997308248932.12.53.2
Fully privatizedWINDERMERE99 YRS FROM 199719997037518511.52.22.8
Fully privatizedPINEVALE99 YRS FROM 199719997357808591.82.22.7
Fully privatizedCHESTERVALE99 YRS FROM 1997199972077381611.72.2
Fully privatizedYEW MEI GREEN99 YRS FROM 199720006767748521.72.12.6
Fully privatizedTHE RIVERVALE99 YRS FROM 199720007207868571.422.6
Fully privatizedSUMMERDALE99 YRS FROM 199720006237278271.52.33.2
Fully privatizedTHE FLORIDA99 YRS FROM 199720007178059161.92.12.6
Fully privatizedNORTHOAKS99 YRS FROM 199720005837077531.62.43.4
Fully privatizedWOODSVALE99 YRS FROM 199720006867137431.72.43.2
Fully privatizedTHE FLORAVALE99 YRS FROM 199720006447428081.82.33
Fully privatizedTHE EDEN AT TAMPINES99 YRS FROM 2000200370483792922.43
Fully privatizedTHE DEW99 YRS FROM 200020038879451,0272.12.42.7
Fully privatizedBISHAN LOFT99 YRS FROM 200020031,3081,3211,3342.633.3
Fully privatizedLILYDALE99 YRS FROM 200020037057337591.42.32.8
Fully privatizedNUOVO99 YRS FROM 200120049381,0221,12922.43.2
Fully privatizedPARK GREEN99 YRS FROM 200120047818859491.72.23
Fully privatizedTHE ESPARIS99 YRS FROM 2002200575579683622.53
Fully privatizedWHITEWATER99 YRS FROM 2002200575585192022.32.9
Fully privatizedTHE QUINTET99 YRS FROM 200320066948058601.92.33.2
Fully privatizedLA CASA99 YRS FROM 2004200875881190622.43.4
Partially privatizedESPARINA RESIDENCES99 YRS FROM 201020131,1211,1961,2892.73.13.5
Partially privatizedPRIVE99 YRS FROM 201020138321,0941,2611.233.6
Partially privatizedTHE CANOPY99 YRS FROM 201020147298669382.32.72.9
Partially privatizedAUSTVILLE RESIDENCES99 YRS FROM 201020149109931,0822.42.93.7
Partially privatizedBELYSA99 YRS FROM 201120149489791,0311.73.13.8
Partially privatizedRIVERPARC RESIDENCE99 YRS FROM 201020147329411,0661.42.23
Partially privatizedBLOSSOM RESIDENCES99 YRS FROM 201120149489831,0031.92.63.3
Partially privatizedARC AT TAMPINES99 YRS FROM 201120147949691,0621.33.13.9
Partially privatizedWATERCOLOURS99 YRS FROM 201220147498839661.42.83.7
Partially privatizedTHE TAMPINES TRILLIANT99 YRS FROM 201120159531,1801,3141.93.24.1
Partially privatizedTHE RAINFOREST99 YRS FROM 201120159501,1341,2472.62.82.9
Partially privatizedTWIN WATERFALLS99 YRS FROM 201120158231,0551,1551.52.83.3
Partially privatized1 CANBERRA99 YRS FROM 201220158419911,1111.22.33.4
Partially privatizedHERON BAY99 YRS FROM 201220158259731,1011.32.53.6
Partially privatizedWATERWOODS99 YRS FROM 201320159371,0511,1302.82.82.8
Partially privatizedWATERBAY99 YRS FROM 201220167681,0491,1481.32.73.4
Partially privatizedTHE TOPIARY99 YRS FROM 201220169721,1001,2021.23.14.3
Partially privatizedCITYLIFE@TAMPINES99 YRS FROM 201220166671,0871,2301.22.83.6
Partially privatizedTWIN FOUNTAINS99 YRS FROM 201220167919641,0271.32.63.6
Partially privatizedFORESTVILLE99 YRS FROM 201220168129591,06512.83.7
Partially privatizedLUSH ACRES99 YRS FROM 2013201699111011,2042.32.93.5
Partially privatizedECOPOLITAN99 YRS FROM 2012201695110821,2082.42.93.2
Partially privatizedSEA HORIZON99 YRS FROM 2013201693310301,2052.42.83.3
Partially privatizedSKYPARK RESIDENCES99 YRS FROM 2013201692310811,2022.62.83.1
Partially privatizedLAKE LIFE99 YRS FROM 20132016104111401,2142.52.93.5
Partially privatizedTHE AMORE99 YRS FROM 2013201693710811,2583.43.43.4
First 5 yearsBELLEWOODS99 YRS FROM 20132017974979986---
First 5 yearsBELLEWATERS99 YRS FROM 201320171,0261,0451,0693.73.73.7
First 5 yearsTHE TERRACE99 YRS FROM 20132017---2.42.42.4
First 5 yearsWESTWOOD RESIDENCES99 YEARS LEASEHOLD2017---2.43.53.9
First 5 yearsTHE VALES99 YEARS LEASEHOLD20171,0001,0421,0982.53.13.6
First 5 yearsTHE BROWNSTONE99 YEARS LEASEHOLD20171,0351,0811,127---
First 5 yearsSIGNATURE AT YISHUN99 YEARS LEASEHOLD20179279591,0192.72.72.7
First 5 yearsSOL ACRES99 YEARS LEASEHOLD20181,0231,1011,20933.43.6
First 5 yearsTHE CRITERION99 YEARS LEASEHOLD20189729891,006---
First 5 yearsWANDERVALE99 YEARS LEASEHOLD2018---2.42.93.4
First 5 yearsTHE VISIONAIRE99 YEARS LEASEHOLD2018---3.53.53.5
First 5 yearsPARC LIFE99 YEARS LEASEHOLD20189671,0241,05633.13.2
First 5 yearsTREASURE CREST99 YEARS LEASEHOLD20181,0761,1101,143---
First 5 yearsNORTHWAVE99 YEARS LEASEHOLD20198579481,011---
First 5 yearsINZ RESIDENCE99 YEARS LEASEHOLD2019------
First 5 yearsHUNDRED PALMS RESIDENCES99 YEARS LEASEHOLD2019---3.23.23.2
First 5 yearsRIVERCOVE RESIDENCES99 YEARS LEASEHOLD20201,1901,1971,203---
UncompletedPIERMONT GRAND99 YEARS LEASEHOLDUNCOMPLETED1,0981,1651,300---
UncompletedPARC CANBERRA99 YEARS LEASEHOLDUNCOMPLETED1,0831,0831,083---
UncompletedOLA99 YEARS LEASEHOLDUNCOMPLETED1,0381,1711,357---
UncompletedPARC CENTRAL RESIDENCES99 YEARS LEASEHOLDUNCOMPLETED1,0661,2091,281---
UncompletedPROVENCE RESIDENCE99 YEARS LEASEHOLDUNCOMPLETED1,0471,2111,327---
UncompletedPARC GREENWICH99 YEARS LEASEHOLDUNCOMPLETED1,0291,2271,379---
UncompletedNORTH GAIA99 YEARS LEASEHOLDUNCOMPLETEDTBCTBCTBC---
Source: Squarefoot research

With a lower entry price, Executive Condominium easily represents a greater potential for appreciation. Using the recent eligible executive condominiums that have met the Minimum Occupation Period as case study, there is a significant capital gain of more than 20% gain over the initial purchase price.

Project Launch Period TOP Date Average Purchase Price Average Transacted Price Percentage Gain
Esparina Residences 10-Oct11-Sep-13$754 $1,095 45%
The Canopy 10-Nov14-Jan-14$652 $820 26%
Prive 11-Jan17-Jul-13$686 $972 42%
Austville Residences 11-Feb22-Apr-14$700 $890 27%
Arc At Tampines 11-Oct5-Aug-14$744 $917 23%
Blossom Residences 11-Jul5-Sep-14$700 $881 26%
Riverparc Residence 11-Jul19-Jun-14$678 $872 29%
Belysa 11-Jun28-May-14$669 $856 28%
The Tampines Trilliant 12-Feb6-Feb-15$800 $1,051 31%
If we look at the actual transactions for the top executive condominium (Esparina Condominium) which have the highest percentage gain, there are more than 20 transactions that have a capital gain of more than 500k! With a current total of more than 200 transactions for Esparina Residence, all transactions are profitable.

Esparina Residences Transaction

SOLD ON ADDRESS UNIT AREA (SQFT) SALE PRICE (S$ PSF) BOUGHT ON PURCHASE PRICE (S$ PSF) PROFIT (S$) HOLDING PERIOD (DAYS) ANNUALISED (%)
12AUG2021123COMPASSVALEBOW#XX-261,7769409DEC2010562670,8883,8994.9
10OCT2018117COMPASSVALEBOW#XX-161,83099429NOV2010638651,0002,8725.8
29APR2021117COMPASSVALEBOW#XX-151,3991,14328DEC2010687639,0003,7755.1
4DEC2020123COMPASSVALEBOW#XX-271,67992314DEC2010544636,0003,6435.4
22JUL2021123COMPASSVALEBOW#XX-281,77690123DEC2010544634,0003,8644.9
9APR2021117COMPASSVALEBOW#XX-161,4641,18225NOV2010769604,8883,7884.2
7FEB2022123COMPASSVALEBOW#XX-271,0011,3092DEC2010726583,0004,0855.4
15MAR2021121COMPASSVALEBOW#XX-211,3671,17010DEC2010759563,0003,7484.3
12AUG2020117COMPASSVALEBOW#XX-161,4641,13422NOV2010751560,0003,5514.3
18SEP2020117COMPASSVALEBOW#XX-161,4641,1412FEB2011761556,0003,5164.3
28MAR2019115COMPASSVALEBOW#XX-111,67986919NOV2010546544,0003,0515.7
24JUL2020117COMPASSVALEBOW#XX-161,4641,11217MAR2011741543,0003,4174.4
21OCT2021115COMPASSVALEBOW#XX-111,0011,2793DEC2010741538,0003,9755.1
29OCT2021115COMPASSVALEBOW#XX-091,0661,2659DEC2010765533,0003,9774.7
23JUL2019117COMPASSVALEBOW#XX-161,4641,1205JAN2011758529,8883,1214.7
8APR2019121COMPASSVALEBOW#XX-211,3671,1671NOV2010785522,0003,0804.8
3JUL2020121COMPASSVALEBOW#XX-221,3671,17017JAN2011791518,0003,4554.2
12JUL2021115COMPASSVALEBOW#XX-121,0661,24611NOV2010761517,0003,8964.7
14DEC2018127COMPASSVALEBOW#XX-321,2491,04819JAN2011636514,0002,8866.5
27SEP2018115COMPASSVALEBOW#XX-091,77683627DEC2010549510,0002,8315.6
19NOV2021125COMPASSVALEBOW#XX-311,0011,24511JAN2011737508,0003,9654.9
13AUG2021119COMPASSVALEBOW#XX-181,0011,23726NOV2010729508,0003,9135.1
30MAR2020121COMPASSVALEBOW#XX-222,58370029NOV2010503508,0003,4093.6
27FEB2019121COMPASSVALEBOW#XX-211,3671,1418FEB2011779495,0002,9414.9
6DEC2019119COMPASSVALEBOW#XX-171,0661,18213DEC2010724489,0003,2805.6
2OCT2019123COMPASSVALEBOW#XX-281,0661,1736DEC2010714489,0003,2225.8
4MAR2020127COMPASSVALEBOW#XX-331,2921,00626NOV2010630486,0003,3865.2
8JUL2019125COMPASSVALEBOW#XX-311,0011,24913DEC2010766483,0003,1295.9
26APR2021123COMPASSVALEBOW#XX-261,0661,2178DEC2010765481,8883,7924.6
23JUL2021125COMPASSVALEBOW#XX-311,0011,23814DEC2010763475,0003,8744.7
27OCT2020119COMPASSVALEBOW#XX-171,0661,1538DEC2010717464,8003,6114.9
19NOV2019119COMPASSVALEBOW#XX-171,0661,16429NOV2010728464,0003,2775.4
19MAR2019117COMPASSVALEBOW#XX-131,43299013JAN2011668460,0002,9874.9
7JAN2021115COMPASSVALEBOW#XX-091,0661,2016DEC2010770459,0003,6854.5
14JAN2019111COMPASSVALEBOW#XX-041,0551,06620DEC2010636454,0002,9476.6
5DEC2018125COMPASSVALEBOW#XX-311,2491,0013DEC2010639452,0002,9245.8
1APR2021119COMPASSVALEBOW#XX-201,35698315NOV2010651450,0003,7904
19OCT2020117COMPASSVALEBOW#XX-151,1631,16126NOV2010777447,0003,6154.1
25JUL2019117COMPASSVALEBOW#XX-151,1631,12719NOV2010749439,0003,1704.8
18OCT2019115COMPASSVALEBOW#XX-121,0661,16229NOV2010752437,0003,2455
12NOV2020123COMPASSVALEBOW#XX-261,0661,1828DEC2010773436,0003,6274.4
5AUG2021127COMPASSVALEBOW#XX-321,0011,1997JAN2011765434,0003,8634.3
29MAR2021119COMPASSVALEBOW#XX-191,0011,21926NOV2010787432,0003,7764.3
20NOV2020113COMPASSVALEBOW#XX-071,0661,18229NOV2010778431,0003,6444.3
22MAR2019117COMPASSVALEBOW#XX-141,1631,1183DEC2010749429,0003,0314.9
16SEP2020117COMPASSVALEBOW#XX-131,1631,17027DEC2010802428,0003,5514
28AUG2019123COMPASSVALEBOW#XX-251,0661,15912NOV2010759426,0003,2114.9
21APR2021119COMPASSVALEBOW#XX-191,0011,21422NOV2010790424,0003,8034.2
13JUN2019117COMPASSVALEBOW#XX-141,1631,14410JAN2011780423,0003,0764.6
28SEP2020117COMPASSVALEBOW#XX-151,1631,1187DEC2010759418,0003,5834
21OCT2019115COMPASSVALEBOW#XX-091,0661,1266JAN2011734418,0003,2105
5NOV2019117COMPASSVALEBOW#XX-131,1631,15322NOV2010794417,8883,2704.3
11AUG2020117COMPASSVALEBOW#XX-151,1631,11819NOV2010761415,0003,5534
23SEP2019123COMPASSVALEBOW#XX-281,0661,1072DEC2010718415,0003,2175
30MAR2021117COMPASSVALEBOW#XX-141,1631,12319NOV2010770410,0003,7843.7
13SEP2019123COMPASSVALEBOW#XX-281,0661,1407DEC2010755410,0003,2024.8
21JUN2019119COMPASSVALEBOW#XX-181,0011,12823NOV2010720407,8883,1325.4
26JUN2019127COMPASSVALEBOW#XX-321,0011,1742DEC2010769405,0003,1285.1
5OCT2020117COMPASSVALEBOW#XX-141,1631,1539MAR2012805404,0003,1324.3
22APR2021127COMPASSVALEBOW#XX-331,0011,15926NOV2010757402,0003,8004.2
28DEC2018117COMPASSVALEBOW#XX-131,1631,14418NOV2010799401,0002,9624.5
7SEP2020117COMPASSVALEBOW#XX-141,1631,12730NOV2010783400,0003,5693.8
8NOV2018117COMPASSVALEBOW#XX-151,1631,1082DEC2010764400,0002,8984.8
5NOV2019127COMPASSVALEBOW#XX-331,0011,12919NOV2010730399,0003,2735
22MAY2019127COMPASSVALEBOW#XX-331,0011,16419NOV2010766398,0003,1065
15SEP2020113COMPASSVALEBOW#XX-071,0661,1596DEC2010786397,0003,5714
22MAR2021127COMPASSVALEBOW#XX-331,0011,12918JAN2011734395,0003,7164.3
26APR2019119COMPASSVALEBOW#XX-191,0011,19720DEC2010802395,0003,0494.9
23APR2019123COMPASSVALEBOW#XX-281,0661,10716NOV2010737395,0003,0804.9
14NOV2018125COMPASSVALEBOW#XX-301,29294514JAN2011639394,0002,8615.1
14MAY2019123COMPASSVALEBOW#XX-271,0011,09928DEC2010706393,0003,0595.4
20JUL2020119COMPASSVALEBOW#XX-201,0661,16226NOV2010795391,0003,5244
20SEP2018123COMPASSVALEBOW#XX-281,0661,1077DEC2010740391,0002,8445.3
22SEP2020115COMPASSVALEBOW#XX-101,0661,1072DEC2010744387,0003,5824.1
26MAR2019123COMPASSVALEBOW#XX-271,0011,14924NOV2010762387,0003,0445
10JUL2019119COMPASSVALEBOW#XX-181,0011,09929NOV2010713386,0003,1455.1
13MAY2019125COMPASSVALEBOW#XX-311,0011,11928MAR2011733386,0002,9685.3
7DEC2018119COMPASSVALEBOW#XX-201,0661,12615NOV2010765385,0002,9444.9
2MAY2019119COMPASSVALEBOW#XX-181,0011,15930NOV2010775384,0003,0754.9
6AUG2019113COMPASSVALEBOW#XX-081,0661,15430NOV2010798380,0003,1714.3
3AUG2019115COMPASSVALEBOW#XX-091,0661,07913DEC2010723380,0003,1554.7
27MAR2019123COMPASSVALEBOW#XX-271,0011,09917DEC2010722377,0003,0225.2
14DEC2018117COMPASSVALEBOW#XX-151,1631,0678DEC2010742377,0002,9284.6
24SEP2018121COMPASSVALEBOW#XX-221,3671,0618OCT2010785377,0002,9083.9
19SEP2018115COMPASSVALEBOW#XX-101,0661,1078NOV2010754377,0002,8725
19OCT2018115COMPASSVALEBOW#XX-091,0661,1072DEC2010756374,0002,8785
5NOV2019127COMPASSVALEBOW#XX-331,0011,10925NOV2010738371,0003,2674.6
8MAR2019113COMPASSVALEBOW#XX-081,0661,11225NOV2010764371,0003,0254.6
16NOV2018117COMPASSVALEBOW#XX-131,1631,10529NOV2010786371,0002,9094.4
12NOV2018119COMPASSVALEBOW#XX-191,0011,17918MAR2011808371,0002,7965.1
7DEC2018123COMPASSVALEBOW#XX-261,0661,1261DEC2010779370,0002,9284.7
21SEP2018119COMPASSVALEBOW#XX-181,0011,07919NOV2010709370,0002,8635.5
28AUG2020127COMPASSVALEBOW#XX-321,0011,09929NOV2010730369,0003,5604.3
27JUN2019113COMPASSVALEBOW#XX-071,0661,14326NOV2010798368,0003,1354.3
1APR2020115COMPASSVALEBOW#XX-111,0011,08929NOV2010723366,0003,4114.5
31MAY2019115COMPASSVALEBOW#XX-111,0011,09930NOV2010736363,0003,1044.8
27AUG2020125COMPASSVALEBOW#XX-301,0011,14910MAR2011788361,0003,4584.1
18JAN2019119COMPASSVALEBOW#XX-181,0011,11920APR2011758361,0002,8305.1
6SEP2021123COMPASSVALEBOW#XX-271,0011,24011JAN2018879360,8881,3349.9
10OCT2019123COMPASSVALEBOW#XX-261,0661,07923NOV2010743358,0003,2434.3
12OCT2018113COMPASSVALEBOW#XX-081,0661,13525NOV2010800357,0002,8784.5
23JAN2019123COMPASSVALEBOW#XX-261,0661,0796DEC2010747354,0002,9704.6
14AUG2020123COMPASSVALEBOW#XX-251,0661,07010DEC2010740351,0003,5353.9
30JUL2021127COMPASSVALEBOW#XX-348291,2047DEC2010783349,0003,8884.1
26MAR2019127COMPASSVALEBOW#XX-321,0011,0698DEC2010722347,0003,0304.8
5AUG2020127COMPASSVALEBOW#XX-321,0011,07911NOV2010734345,0003,5554
7APR2020115COMPASSVALEBOW#XX-111,0011,05426NOV2010711343,0003,4204.3
12DEC2018125COMPASSVALEBOW#XX-301,0011,11423NOV2010773341,0002,9414.6
6MAR2019119COMPASSVALEBOW#XX-181,0011,0842DEC2010745339,0003,0164.6
3JAN2022111COMPASSVALEBOW#XX-028291,1466SEP2011738338,0003,7724.3
12JUL2019119COMPASSVALEBOW#XX-191,0011,0991DEC2010761338,0003,1454.4
23APR2021125COMPASSVALEBOW#XX-299361,13227DEC2010772337,0003,7703.8
26NOV2018125COMPASSVALEBOW#XX-301,0011,1191DEC2010782337,0002,9174.6
8APR2020127COMPASSVALEBOW#XX-341,0769438DEC2010633334,0003,4094.4
22JAN2019119COMPASSVALEBOW#XX-191,0011,09919NOV2010765334,0002,9864.5
21JUN2019115COMPASSVALEBOW#XX-111,0011,02919NOV2010696333,0003,1364.7
8FEB2021125COMPASSVALEBOW#XX-298291,15820DEC2010759331,0003,7034.3
17OCT2018115COMPASSVALEBOW#XX-121,0661,02830NOV2010717331,0002,8784.7
18SEP2018119COMPASSVALEBOW#XX-201,0661,0794NOV2010769331,0002,8754.4
16NOV2020127COMPASSVALEBOW#XX-348291,17011NOV2010772330,0003,6584.2
1APR2020111COMPASSVALEBOW#XX-028291,14610JAN2011749329,0003,3694.7
5APR2019119COMPASSVALEBOW#XX-191,0011,12526NOV2010796328,8883,0524.2
29NOV2021113COMPASSVALEBOW#XX-068291,1533AUG2011758328,0003,7714.2
6OCT2021111COMPASSVALEBOW#XX-048291,1749MAY2011778328,0003,8034
2NOV2018115COMPASSVALEBOW#XX-111,0011,05724NOV2010731326,0002,9004.7
29OCT2018119COMPASSVALEBOW#XX-191,0011,1094NOV2010784325,0002,9164.4
9APR2021113COMPASSVALEBOW#XX-058291,18820DEC2010798324,0003,7633.9
23MAR2021113COMPASSVALEBOW#XX-058291,1708FEB2011779324,0003,6964.1
14JAN2021111COMPASSVALEBOW#XX-028291,14922NOV2010758324,0003,7064.2
9DEC2020113COMPASSVALEBOW#XX-068291,14611NOV2010759321,0003,6814.2
1FEB2019115COMPASSVALEBOW#XX-111,0011,0278NOV2010707320,0003,0074.6
11MAY2021113COMPASSVALEBOW#XX-058291,13812SEP2011753319,0003,5294.4
19MAR2021113COMPASSVALEBOW#XX-068291,15821APR2011775318,0003,6204.1
1OCT2021113COMPASSVALEBOW#XX-058291,15211FEB2011770317,0003,8853.9
13DEC2021121COMPASSVALEBOW#XX-248291,1324JUL2011753314,0003,8154
4MAY2021113COMPASSVALEBOW#XX-068291,1328AUG2011753314,0003,5574.3
21SEP2018119COMPASSVALEBOW#XX-181,0011,07926NOV2010765314,0002,8564.5
14FEB2020121COMPASSVALEBOW#XX-241,0559293JAN2011633312,0003,3294.3
19MAR2021111COMPASSVALEBOW#XX-038291,14414DEC2010769311,0003,7483.9
6AUG2020127COMPASSVALEBOW#XX-348291,13412JAN2011764307,0003,4944.2
21OCT2019121COMPASSVALEBOW#XX-248291,13728OCT2011767306,0002,9155
13OCT2020125COMPASSVALEBOW#XX-298291,12211FEB2011755304,0003,5324.2
14MAR2019113COMPASSVALEBOW#XX-058291,13227DEC2010765304,0002,9994.9
5AUG2019125COMPASSVALEBOW#XX-291,07692030DEC2010641300,0003,1404.3
25FEB2019113COMPASSVALEBOW#XX-058291,11013APR2011750298,0002,8755.1
19SEP2018127COMPASSVALEBOW#XX-321,0011,0491DEC2010751298,0002,8494.4
14NOV2019111COMPASSVALEBOW#XX-018291,12810MAR2011770297,0003,1714.5
2SEP2019127COMPASSVALEBOW#XX-348291,10823DEC2010749297,0003,1754.6
15APR2019123COMPASSVALEBOW#XX-261,0661,01830NOV2010739297,0003,0583.9
31JUL2019111COMPASSVALEBOW#XX-018291,13215JUN2011779292,0002,9684.7
26JUL2019121COMPASSVALEBOW#XX-238291,14113MAY2011789292,0002,9964.6
4JAN2019111COMPASSVALEBOW#XX-048291,11030NOV2010758292,0002,9574.8
26OCT2018113COMPASSVALEBOW#XX-071,0661,0659NOV2010792291,0002,9083.8
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Esparina Price Trend
Using some of the case study, we would examine if the actual figures truly represent a sensible choice to buy an Executive Condominium.

Case Study: Watercolour (EC) vs Seastrand (Private)

Watercolors vs Seastrand
Watercolour (executive condominium) was launched in the year 2011 and is situated next to Seastrand (private condominium) in the Pasir Ris area. Both condominiums are completed in the same year 2014.

With a lower launch price for Watercolour of about 23% difference, buyers already have the initial price advantage. Once the executive condominium is partially privatized, the price difference of both condominiums has narrowed. In terms of price appreciation, it would be easy to have higher capital gain for Watercolour (23%) compared to Seastrand (13.4%).

watercolors vs seastrand price trend 
(Click on the above graph to enlarge it)

With a closer look at the individual transaction, the top 10 profitable transactions easily exceed 190k in profits.

SOLD ON ADDRESS UNIT AREA (SQFT) SALE PRICE (S$ PSF) BOUGHT ON PURCHASE PRICE (S$ PSF) PROFIT (S$) HOLDING PERIOD (DAYS) ANNUALISED (%)
13SEP202123PASIRRISLINK#XX-092,2827496DEC2012624286,8003,2032.1
31AUG202127PASIRRISLINK#XX-161,2819379JUL2012723273,8003,3402.9
25OCT202125PASIRRISLINK#XX-141,73379125SEP2013647249,2002,9522.5
16SEP202123PASIRRISLINK#XX-091,37886411DEC2012683248,9003,2012.7
20JAN202235PASIRRISLINK#XX-361,33584717AUG2012687213,3003,4432.2
14JUN202135PASIRRISLINK#XX-361,28188116AUG2012727197,6883,2242.2
24JUN202135PASIRRISLINK#XX-3595893920JUL2012734197,1003,2612.8
1NOV202129PASIRRISLINK#XX-228618946JUL2012666196,5003,4053.2
11OCT202123PASIRRISLINK#XX-109908792JUL2013684192,8003,0233.1
22OCT202127PASIRRISLINK#XX-1599086821NOV2013676190,9002,8923.2
Comparing the current price difference (12%) to its neighbouring private condominium, it still presents a value proposition for a potential buyer to consider Watercolour as a resale executive condominium.

Case Study: Lush Acre (EC) vs Riverbank @ Fernvale, Rivertrees Residences and H20 Residences (Private)

Fernvale Cluster
Lush Acres (executive condominium) is located within the Sengkang West area with 3 other private condominiums in the vicinity – Riverbank @ Fernvale, Rivertrees Residences and H20 Residences.

Launched in the year 2013, Lush Acres was developed by a local reputable developer – City Developments Limited (CDL). Aside from the typical condominium facilities and features, it boasts a rare 100m lap pool.

H20 Residences, Lush Acres, Riverbank @ Fernvale, Rivertrees Residences are launched in the year 2011 to 2014. As Lush Acres was launched as an executive condominium, owners immediately enjoy a price discount of 23% relative to its private condominium.

The price differences narrowed to around 5% relative to its neighbouring private condominiums after Lush Acres reached its MOP. In terms of price appreciation, owners have around 27.5% capital gain.

Fernvale Cluster Price Trend 
(Click on the above graph to enlarge it.)

Looking at the top 10 profitable transactions, the actual profits exceed 400k per transaction. The 2 most profitable transactions net the owners over half a million dollars in profits!

SOLD ON ADDRESS UNIT AREA (SQFT) SALE PRICE (S$ PSF) BOUGHT ON PURCHASE PRICE (S$ PSF) PROFIT (S$) HOLDING PERIOD (DAYS) ANNUALISED (%)
9DEC20217FERNVALECLOSE#XX-161,5071,18810FEB2014803579,6002,8595.1
9DEC20217FERNVALECLOSE#XX-161,5071,17525NOV2013801563,6002,9364.9
13AUG20217FERNVALECLOSE#XX-161,5071,12112FEB2014794491,7082,7394.7
17DEC20211FERNVALECLOSE#XX-011,2381,2041NOV2013812484,2902,9685
10NOV20213FERNVALECLOSE#XX-081,2381,17125NOV2013790472,4002,9075.1
10NOV20211FERNVALECLOSE#XX-011,2381,17511NOV2013798467,6102,9215
31AUG20215FERNVALECLOSE#XX-121,3021,15226NOV2013795464,9502,8354.9
5AUG20217FERNVALECLOSE#XX-161,5071,11523SEP2013819445,6002,8734
4OCT20211FERNVALECLOSE#XX-011,2381,12317SEP2013766441,2002,9394.9
16SEP20213FERNVALECLOSE#XX-081,2381,13123SEP2013775440,8002,9154.8
The price difference between Lush Acres and its neighbouring private condominium is currently narrowed to 5%. This presents a marginal price difference to potential resale condominium buyers. Given Lush Acre’s unique feature of a 100m lap pool that is rarely seen in other condominiums, this will represent a differentiated selling point for years to come.

Consideration when buying Executive Condominium new launch

Executive condominiums’ new launch purchases have rarely been unprofitable purchases for owners. However, there are several considerations to take note of before proceeding with the purchase.

Eligibility

Before committing to a new launch EC purchase, there are several criteria to be met

  1. Family Nucleus
    • Public Scheme
    • Fiancé/Fiancée Scheme
    • Orphans Scheme
    • Joint Singles Scheme
  2.  Citizenship
    • You must be a Singapore Citizen
    • At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident
    • All singles must be Singapore Citizens if applying under the Joint Singles Scheme
  3.  Age
    • At least 21 years old
    • At least 35 years old, if applying under the Joint Singles Scheme
  4. Income Ceiling
    • Your household income must not exceed the $16,000 income ceiling.
  5. Property Ownership
    • You do not own other property overseas or locally, or have not disposed of any within the last 30 months
    • You have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far

For first-timer families, there is 70% of flat supply is set aside during the initial launch period (1 month). The remaining 30% of flat supply is set for second-timer families.

Housing Loan

Executive Condominium is still bound by Mortgage Servicing Ratio (MSR) of 30% of assessable income.

For EC direct purchase from developers, the Loan-To-Value (LTV) will be as per 1st Housing Loan

1st housing loan
2nd housing loan
3rd housing loan

Stamp Duty

Buyer Stamp Duty will apply on the purchase of Executive Condominium.

Buyer Stamp Duty

For HDB Upgraders, owners do not need to pay ABSD when they purchase EC directly from the developer. Buyers do not need to submit a separate application to IRAS or HDB for the remission of ABSD.

CPF Housing Grant

Depending on the applicants’ gross monthly income, there are up to $30,000 CPF housing grants to offset the cash component of the initial down-payment.

HDB Grant
If there is a qualifying member of your SC/ SPR household who obtains Singapore citizenship, a Citizen Top-Up of $10,000 can be made with HDB within 6 months of being eligible for it.

Ownership

If the applicants are currently staying in an HDB flat, there is no requirement to sell HDB once the purchase of the executive condominium is completed. The HDB flat is required to be disposed of within 6 months of taking possession of the EC unit.

Consideration when buying resale Executive Condominium

Buying a resale executive condominium is usually with less restriction. There is no family nucleus requirement. Depending on the status of the resale executive condominium, it would be only available for Singaporean citizens or Permanent residents if it’s less than 10 years of MOP. Otherwise, there is no difference in legal status compared to a private condominium.

Eligibility

Executive condominium (EC) is subjected to a Minimum Occupation Period (MOP) of 5 years before it can be sold on the secondary market. Upon fulfilling the MOP, it can be sold to Singaporean citizens (SC) or Singapore Permanent Residents (SPR). It is considered as partially privatized until it reached at least 10 years of the occupation period.

For fully privatized condominiums, there is no restriction on citizenship, and it can be sold to foreigners as well. There is no other restriction on age, income ceiling or property ownership.  At this point in time, the potential buyers’ pool is expanded from a local market to an international market.

Housing Loan

For housing loan applications, there is no Mortgage Servicing Ratio (MSR) applied when buying resale EC. The eligible loan amount will be calculated based on the Total Debt Servicing Ratio (TDSR) framework. This is currently at 55% of assessable income.

Regardless of partially or fully privatized status, resale EC is considered a private property and the only way to secure a loan is via the private bank. The maximum loan to valuation is currently at 75%.

Stamp Duty

Aside from the Buyer Stamp Duty, there is Additional Buyer Stamp Duty (ABDS) to consider and it varies on your citizenship.

ABSD

^An unincorporated association,

  • A trustee for a collective investment scheme when acting in that capacity,
  • A trustee-manager for a business trust when acting in that capacity
  • The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property.
  • Plus Additional 5% for Housing Developers (non-remittable)

Future trend for Executive Condominium

The land sales for the executive condominium has seen an upwards trajectory in the land bid price, which is in tandem with Singapore residential market. As observed in the recent land in Bukit Batok West Avenue 8, the land bid is currently at an all-time high of $662 per square foot per plot ratio (PSF PPR). Eventually, this would push up the expected new launch EC price.

EC Land Sales VS project 
*TBC: To be confirmed. Also, you can click on the graph above to enlarge it.

Despite the expected increase in the new launch price, the executive condominiums will still be priced at a discount relative to private condominiums.

For those who can recall, Hundred Palms Residences was sold out during the first day of launch (Hougang EC sells out within hours of launch | The Straits Times). With the initial price advantage, it would make financial sense to get a new launch executive if one is eligible for it.

Summary

Executive condominium represents an excellent buying opportunity for Singaporeans and PR who are eligible. As summary,

New Executive Condominium

  • For Singaporeans ONLY
  • Facilities similar to Private Condominiums
  • Entry Price 15-30% Lower than Private
  • Privatized after 5 years (Can sell to SC & SPR, 10 years to Foreigners)

Partially privatized resale Executive Condominium ( 5 < age < 10 years)

  • For Singaporean and Permanent Residents
  • Family nucleus not required
  • The bank loan is subjected to TDSR, not subjected to MSR

Fully privatized resale Executive Condominium (age > 10years)

  • No restriction on the citizenship

 

If you are thinking about it, why not take a look at the upcoming North Gaia executive condominium launch in Yishun?

Take action today, reach out to Mark Lim if you like to be the next proud owner of the upcoming EC!

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Mark Lim

Mark Lim

Decisions are best made with reliable data. With his passion for numbers and data, Mark strives to provide insights to his clients and reader to make better decisions. If you are looking just for advice, he will always be available. Talk to Mark today!

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