Are ECs a Hidden Gold Mine?

Did you know that the number of Executive Condominium (EC) units resold for at least $1 million in gross profit has more than doubled in 2024? According to a recent report by The Straits Times, 38 EC owners made at least $1M in profit when they sold their homes—an increase from just 15 units in 2023.

With private property prices soaring, many homebuyers and investors are wondering:
🔹 Why are EC owners making so much profit?
🔹 Does this mean ECs are the best property investment in Singapore?
🔹 Are resale ECs or brand-new ECs still a better value buy compared to private condos?

Let’s break it down. 👇

Why EC Owners Are Making Millions in Profit 💰

1️⃣ Lower Entry Price – The biggest advantage of ECs is their discounted launch price compared to private condos. As ECs are subsidized by the government and exclusively available to Singaporeans, they start off much cheaper than private developments.

2️⃣ Capital Appreciation After MOP – After fulfilling the 5-year Minimum Occupation Period (MOP), ECs enter the open market. At this stage, buyers are often drawn to ECs because they are significantly cheaper than private condos, causing resale prices to rise. Take a look at the profitability at some of the recently M.O.P ECs.

Source: PropNex Investment Suite

Source: PropNex Investment Suite

3️⃣ Full Privatization = More Demand – At the 10-year mark, ECs become fully privatized, meaning they can be sold to foreigners, further increasing their demand and price appreciation.

4️⃣ The Private Property Price Gap is Widening – The price difference between ECs and private condos has grown MASSIVE, making ECs an attractive alternative for homebuyers looking for affordability.

How EC Prices Compare to Private Condos in 2024

With today’s market conditions, ECs continue to be a great value buy compared to mass-market private condos.

📌 New EC launches: ~$1,500 - $1,600 PSF
📌 Mass-market private condos: ~$2,300 - $2,600 PSF

That’s a 40-50% price gap!

Historically, this gap narrows over time as ECs appreciate in value after hitting MOP and privatization milestones. This means new EC buyers are entering the market at a huge discount, while resale EC buyers still enjoy significant savings compared to private condos.

From the above chart, you can see that the price gap between OCR Private Condo New Sale and EC New Sale is getting wider and wider. In 2024, the price gap has widen to about $714psf or around 46%. This makes a brand new EC a significant discount of almost 50% as compare to buying a brand new private condo!

In the resale market, the resale EC and resale private condo price gap narrows to around 33%. With this price gap, resale EC buyers still enjoy a significant discount as compare to buying a resale private condo.

What This Means for You 🤔

✔ If you currently own an EC
You might be sitting on HUGE potential gains! It could be time to cash out, upgrade, or restructure your portfolio.

✔ If you’re looking to buy
A brand-new EC is one of the best ways to enter the private property market at a discounted price before the price gap closes.

✔ If you’re considering a resale EC
Resale ECs still offer great value compared to private condos, making them an attractive option for buyers who want a condo lifestyle at a lower price.

Final Thoughts: ECs Are the Best Value Buy Right Now

With the rising private property prices and the strong demand for resale ECs, owning an EC is proving to be one of the best investment moves in Singapore’s real estate market.

So, if you own an EC – have you thought about what’s next?
Or if you’re looking for a good entry point into private property, a brand-new EC could be your best bet before prices rise even further.