SINGAPORE: Resold executive condominium (EC) units for at least S$1 million in gross profit more than doubled in 2024, rising to 38 transactions from 15 in 2023, according to data from PropertyLimBrothers (PLB) Research. In previous years, such deals were rare, with only six recorded in 2022 and fewer than five annually before that.
According to The Straits Times, as of Jan 24, 2025, 85 EC units have been resold with at least S$1 million in profit since the EC scheme began. The most profitable resold EC to date came from a four-bedroom unit at Bishan Loft, which sold for S$2.16 million on Dec 5. It made a 293% gain, generating a record S$1.61 million profit from its original 2001 purchase price of S$549,277.
Three other resale units at Bishan Loft also saw profits between 274% and 286%. Analysts noted that these units were bought at relatively low prices in 2001.
Why EC resale prices are rising
Several factors have driven up EC resale prices, according to industry experts. Rising land costs have pushed up new EC prices, making older ones seem more affordable.
Another key factor is location. According to OrangeTee Group chief researcher and strategist Christine Sun, Bishan Loft, for example, is near Bishan MRT station with reputable schools in the area. Tight supply, with only 72 completed EC projects, and strong demand for ECs have also fueled price increases.
According to the Urban Redevelopment Authority (URA), 1,244 new EC units were sold in 2024, exceeding the 1,016 launched that year. Resale transactions last year also rose to 2,102 EC units, compared to just 1,985 in 2023 and 2,051 in 2022.
URA data revealed that EC resale prices have climbed, with the median transacted price rising to S$1,337 per square foot (psf) in 2024 from just S$885 psf in 2020.
With higher private housing prices, non-landed homes have become more out of reach for homebuyers, with heartland condos now at over S$2,000 psf at launch.
Not all EC resale deals end in profit
While many EC owners have seen significant profits, not all resales have been successful. Some ECs have sold at a loss, with PLB Research identifying about 1,000 such cases since 2000.
Resale ECs sold between 2004 and 2008 were more vulnerable to losses due to market downturns, including the dot.com crash in 2000, the severe acute respiratory syndrome (SARS) outbreak in 2003, and the 2008 global financial crisis.
Fourteen EC projects, including Northoaks, Simei Green, and Yew Mei Green, recorded loss-making deals, while the other 58 projects saw profits. PLB Research also found that holding ECs for longer periods tends to yield better returns.
Still, new EC launches continue to attract buyers due to their lower entry prices compared with private condos.
ECs are a mix of public and private housing developed by private firms but priced lower than private condos.
To purchase EC units, buyers must not have a monthly household income beyond S$16,000. They must meet a five-year minimum occupation period (MOP) before selling to Singaporeans and permanent residents. In addition, they can only sell or rent to foreigners after their units are fully privatised in the 11th year. /TISG
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