Hoi Hup Realty and Sunway Group to redevelop Dairy Farm Heights Site
Renowned retiree Mr Chong has been a great support for his three sons as they ventured into buying their first homes. His eldest son chose a private condo while the two younger ones chose executive condos (ECs). Mr Chong did not have to think twice about the EC option, especially when bought during a new launch. Even if purchased shortly after the five-year MOP (minimum occupation period), it is still a great entry price according to him.
Mr Chong has experienced both situations in which his second son purchased a three-bedroom unit at the 531-unit Hundred Palms Residences in July 2017. However, his son initially wanted a four-bedroom unit but they were already sold out quickly. The project by Hoi Hup Realty received 2,000 e-applications and was sold out on the first day of launch at an average price of $841 per square foot. The EC on Yio Chu Kang Road was completed in 2019. Based on caveats lodged in January and February 2025, the average price of units sold was $1,769 per square foot, which translates to a 110% price gain in just eight years.
Chong has been able to observe this up close because his son sold a three-bedroom unit of 1055 square feet at Hundred Palms for $1.95 million ($1,849 per square foot) in February. That is a great increase of about $1 million from the time of the launch. Such capital gains have motivated many people to upgrade to private housing. On the other hand, Mr Chong and his youngest son purchased a 1,399 square feet, four-bedroom, dual-key resale unit at Twin Fountains in Woodlands. This EC was developed by a joint venture between Frasers Property and Lum Chang, and was launched in 2013 and completed in 2016.
ECs are only open to Singapore citizens or permanent residents (PRs) at launch and after the five-year MOP. Foreigners can buy ECs in the resale market only after the 10th year of obtaining Temporary Occupation Permit (TOP). The dual-key unit is ideal for privacy purposes because his son and family occupy a three-bedroom apartment while Mr Chong occupies the one-bedroom studio. Despite their costs of $1,000 per square feet in 2021, which was considered high at that time, Mr Chong points out that recent resale prices have gone even higher.
Last October, City Developments launched Norwood Grand at Champions Way in Woodlands with 348 private condos, 84% sold during its launch weekend at an average price of $2,067 per square foot. This has set a new benchmark for Woodlands according to Chong. He attributes this to many people upgrading their homes due to the announcement of revitalization and new infrastructure like the Johor Bahru-Singapore Rapid Transit System (RTS) with the Singapore terminus in Woodlands North.
Singapore’s urban scenery is characterized by towering skyscrapers and state-of-the-art infrastructure. In prime locations, luxurious condominiums offer a perfect fusion of comfort and convenience, making them highly desirable for both locals and foreigners. These condos come equipped with a variety of top-notch facilities, including swimming pools, fitness centers, and round-the-clock security, elevating the overall lifestyle experience and making them a lucrative choice for potential renters and buyers. For investors, such added amenities ultimately equate to higher rental returns and a steady increase in property value over time. Singapore Condos are a prime example of this trend.
Chong points out the launch of Norwood Grand’s average selling price, which was even higher by 53.8% compared to Twin Fountains’s latest resale price. The northern region’s interest has been revived. Despite the higher upfront costs, buyers are still not discouraged by rising EC prices and caps on loan quantum. The monthly household income ceiling stands at $16,000 and buyers have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if taking a loan.
ERA Singapore’s key executive officer Eugene Lim explains that in this case, a buyer with a household income of $16,000 that is 30 years old and a maximum loan tenure of 30 years can only get a maximum loan of around $1 million. Despite this, Lim believes that buyers are still in it because there is still a 42% median price gap between similar-sized homes in the EC market compared to 99-year leasehold private condos in the Outside Central Region (OCR).
Lim adds that this gap is because the median price of an EC unit sized at 900-1,000 square feet is about $1.48 million, while that of a similar-sized unit in a private condo is about $2.1 million. Furthermore, the ABSD is not payable for HDB upgraders who opted for the Deferred Payment Scheme (DPS). This is why buyers will not have to pay for two mortgages while waiting for their new home to be completed. Moreover, despite the gap gradually decreasing, the 42% median price gap between new ECs and new private condos in the OCR has not yet been breached.
ERA’s Lim, PropNex’s CEO Ismail Gafoor, and OrangeTee & Tie Group chief researcher and strategist Christine Sun all say that the narrowing gap is because EC prices have been rising at a faster rate of 9.6% from 2023 till January 2025 compared to 5.3% in 4-7 years leasehold private condos in the OCR over the same period. They attribute this to the availability of DPS since the monthly household income ceiling is $16,000 and buyers have to meet the Mortgage Servicing Ratio (30% cap) and Total Debt Servicing Ratio (55% cap) requirements if taking a loan.
Despite this, OrangeTee Group’s Sun points out that the median price of new condos this year could go over $2,200 per square foot. This is because the gap has decreased further from 44.2% in January to 43.6% in January 2025. This has been happening because the median price gap between new ECs and private condos in the OCR for a similar size and location has been closing in recent years, and this has been due to EC price rising faster than non-landed home prices.
New launches are expected this year, strategically spaced out across Tampines, Pasir Ris, and Tengah. Mr Lim says that these launches will cater to the housing needs of Singaporeans all over the island. Buyers now have to pay higher costs but are not discouraged by it because of the affordability and lower price per square foot compared to 99-year leasehold private condos in the same area. Aside from the lower price relative to new private condos, EC buyers do not need to dispose of their existing home before making their purchase.
HDB upgraders do not have to pay the ABSD if they opt for the Deferred Payment Scheme (DPS). Under the DPS, they only need to pay a deposit with their loan deferred until after the completion of the EC. This is why buyers will not have to service two mortgages while waiting for their new home to be completed. “With no ABSD payable and the availability of the DPS, HDB owners find it easier to upgrade to a new EC,” Lim adds.
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Since its launch, the executive condo (EC) market has always been closely monitored by HDB upgraders. It offers the best of both worlds with its facilities and a more attractive