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AROUND four in five property players believe that executive condominiums (ECs) remain relevant and desirable despite growing prices, a survey conducted by the National University of Singapore’s Institute of Real Estate and Urban Studies (Ireus) found.

This is mainly due to ECs’ potential for capital gain and initial affordability, said Sing Tien Foo, the provost’s chair professor of real estate at NUS Business School.

ECs, a public-private housing hybrid, have been seen as a golden ticket for the windfall profits that owners can net after selling it. Data tracked by Cushman & Wakefield shows EC transactions being the most profitable among other private properties since the first quarter of 2023, with units changing hands for double their original price.

ECs are typically priced up to 30 per cent lower than comparable private condos, despite being built by private developers. The catch is that new ECs are subject to more restrictive buying conditions, such as an income ceiling of S$16,000 a month, eligibility requirements, a minimum occupation period of five years, and a mortgage servicing ratio in addition to the total debt servicing ratio.

The properties are privatised 10 years after completion; thereafter units in the development can be sold to foreigners, increasing the potential demand pool.