SINGAPORE: The prices of executive condominiums (ECs) in Singapore have been rising steadily in recent years, driven by the limited supply of newly launched ECs.
According to Singapore Business Review, in 2022, the average price was S$1,329 per square foot (psf), and by the first nine months of 2024 (9M24), it had risen to S$1,460 psf.
Singapore Realtors Inc. (SRI) reported that the average unit price for the first nine months of 2024 (9M24) is already 3.8% higher than the 2023 average of S$1,406 per square foot (psf).
SRI also pointed out that half of the EC units sold in 9M24 were priced between S$1,500 psf and S$1,600 psf.
According to SRI, buyers seem willing to pay these higher prices “driven by the perceived value and strategic location of these developments.”
Despite rising prices, SRI stated that ECs remain appealing to buyers due to their unique blend of public and private housing features—an option that buyers increasingly prioritise.
SRI added that data shows that ECs remain highly appealing, especially as more buyers see their value in location and strategic features.
This growing interest in ECs is not limited to new launches but extends to the resale market as well.
SRI data showed that for resale ECs, the average price in the third quarter of 2024 was S$1,307 psf, 6.9% lower than new ECs, priced at S$1,404 psf.
SRI explained that the limited supply of new ECs and regulations like the five-year Minimum Occupation Period (MOP) and the ten-year privatisation rule have helped narrow the price gap between new and resale ECs.
SRI noted that buyers are actively purchasing EC units 10 years or older from their Temporary Occupation Permit (TOP), resulting in a 63.8% year-on-year (YoY) increase in sales of these mature properties.
SRI added that the transition from a new EC to a fully privatised property is appealing to many buyers, as it offers the security of a stable community during the early years and the potential for value appreciation as the property matures and becomes accessible to more buyers.
/TISG
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