Which ECs Have Transacted For Less Than S$1 million In 2023 So Far?
Executive condominiums (ECs) are a popular housing choice because of their affordability compared to private condos. After all, they were introduced to cater to the “sandwich class” – households that exceed the HDB income ceiling but cannot afford a private condo comfortably.
ECs are similar to private condos for the most part; they enjoy the usual facilities such as pools, gyms, clubhouses, and more. However, they’re more affordable because of the government subsidies provided at launch. They’re also usually found in the OCR.
Last month, we talked about the types of condos which were bought for less than $1 million since the start of 2023 (TLDR; there weren’t many). Thus, we thought it would be interesting to find out how resale ECs are faring this year and if they really are a more affordable option for HDB upgraders.
We’ve used 99.co’s Researcher data to find out which ECs have transacted for less than $1 million since the start of the year.
Resale ECs below S$1 million
There are only 102 EC transactions which are less than S$1 million so far in 2023. Similar to resale condos, a majority of the transactions (95 out of 102) were 1- and 2-bedroom units, which comes as no surprise since their smaller floor area constitutes a lower quantum price.
What’s interesting is that the number of transactions was significantly lower than that of resale condos, which recorded 1,052 transactions this year. This is likely due to the fact that the pool of resale condos is much larger than resale ECs. Thus, the quantity transacted is proportional to the total quantity in the market.
Here’s a breakdown of the unit types, locations, tenure and sizes of EC units transacted below S$1 million since the start of 2023.
There were no 4-bedroom ECs for less than S$1 million.
However, there were four transactions when the price increased to slightly above S$1.2 million. All of the ECs below are fully privatised (they’ve crossed the 10-year mark), with Yew Mei Green and Northoaks being over 20 years old.
|Project||Location||Size (sqft)||Price (S$)||Price (S$) (psf)||Tenure||TOP|
|Yew Mei Green||Choa Chu Kang||1,291||1,180,000||914.02||99-year||2000|
|La Casa (2 transactions)||Woodlands||1,260||1,150,000 – 1,155,00||912.70- 916.67||99-year||2008|
So far, only seven 3-bedroom ECs were transacted below S$1 million this year.
3 out of 4 of the ECs here TOP-ed over 20 years ago, which could explain its lower price tag. There are also repeated names, such as Yew Mei Green and Northoaks. The Canopy is the only project which TOP-ed less than 10 years ago in 2014.
Yew Mei Green and Simei Green Condominium are within walking distance of Yew Tee MRT and Simei MRT, respectively.
1- and 2-bedrooms
There are 31 transactions for 1-bedroom ECs and 64 transactions for 2-bedroom ECs this year. While they make up a bulk of the sum, these figures are substantially lower when compared to the resale condo market.
In fact, there are a total of 915 1 and 2-bedder resale condos that transacted for less than a million. The number is much higher because the supply of 1 and 2-bedders for resale condos is much higher than resale ECs.
Since ECs were intended for families and own-stay, there are fewer 1 and 2-bedder ECs available in the market. On the other hand, private condos typically have a higher percentage of 1 and 2-bedders, which are a popular choice for investors seeking rental yield.
Are ECs always cheaper than private condos?
With a budget of S$1 million, it seems that purchasing a resale EC is not any easier than a resale condo in 2023. We also should not assume that ECs are always cheaper than private condos.
Though it may be the case in the past, resale EC prices have soared in recent years due to their growing popularity. In fact, from 2012 to 2022, resale EC psf prices rose 59 per cent, compared to 37 per cent for resale condos. As such, the price gap between resale ECs and resale condos has narrowed in recent years.
Although rare, there are also cases where a resale EC is more expensive than a resale condo despite being in the same district.
Take the average psf prices of Waterwoods (resale EC) and Flo Residence (resale condo), for example. Both developments are located in Punggol (District 19) and are, in fact, side by side. Waterwoods TOP-ed in 2015, while Flo Residence TOP-ed in 2016. Flo Residence was initially priced at an average of S$841 psf at launch, which was higher than Waterwoods’ price of S$800.
However, In 2021, Waterwoods had an average psf price of S$1,000. This was higher than Flo Residence, which averaged S$974 psf. In 2022, Waterwoods had a higher average psf price than Flo Residence as well (S$1,126 versus S$1,124). So far this year, Flo Residence seems to be performing slightly better than Waterwoods (S$1,222 versus S$1,212).
New launch ECs vs new launch condos
In 2022, the average psf price for new launch ECs was S$1,328. Meanwhile, new launch condos commanded an astonishing S$2,308 psf, resulting in a price gap of almost S$1,000 psf. So far this year, new launch ECs have averaged S$1,362 psf, while new launch condos averaged a sky-high S$2,532 psf.
In addition, CPF Housing grants are also applicable to ECs, similar to HDBs. Since new launch ECs continue to offer lower price points than new launch private condos, they remain a popular choice for buyers. This can be seen from recent EC launches – Tenet EC and Copen Grand EC – which were met with enthusiastic reception. There are also a number of upcoming ECs in 2023 and 2024 which buyers can look forward to.