While the dream of owning a home in Singapore often feels just out of reach for many, Executive Condominiums, or ECs, offer a promising middle ground for the so-called “sandwich class”—those households earning too much for HDB flats but not quite enough for private condos.
Designed for families with a monthly income cap of S$16,000, ECs target Singaporean citizens forming a family nucleus, like married couples, though singles under 35 are generally out of luck. With at least one applicant needing to be a citizen, and no private property ownership allowed in the last 30 months, the rules are strict but aim to keep ECs accessible to those truly in need.
Yet, affordability is becoming a real hurdle. New EC launches in 2024 average S$1,400 to S$1,500 per square foot, meaning a three-bedroom unit could set buyers back S$1.2 to S$1.5 million. This pricing trend reflects the growing demand for ECs as a more affordable alternative to private condominiums in similar locations affordable alternative.
Compare that to private condos at S$2,200 to S$2,600 per square foot, and the price gap is shrinking fast, making ECs less of a bargain than before. Add in a hefty 25% down payment and tight loan rules like the Mortgage Servicing Ratio cap, and many wonder if their dream home is slipping away. Thankfully, first-timer families can tap into CPF Housing Grants up to S$30,000, a small but welcome lifeline.
What makes ECs still attractive, though? They boast condo perks—think pools, gyms, and security—built by private developers but sold at subsidised rates. Additionally, the government subsidies on ECs help lower the initial cost for eligible buyers government subsidies.
For the first 10 years, they’re considered public housing with a 5-year Minimum Occupation Period before resale, and sales restrictions until fully privatised. After a decade, they’re free to be sold to anyone, even foreigners, often with nice capital gains. Demand is hot, with projects like Lumina Grand EC in 2024 selling over 50% at launch, despite limited new supply. The 2024 market has already recorded 1,185 new EC transactions, further demonstrating the strong demand for these hybrid housing options.
Still, challenges loom large. Rising prices, stricter loans, and debt ratio limits squeeze median-income households hard.
It’s a bittersweet reality—ECs remain a stepping stone, but for many, that step feels like a giant leap. Could this hybrid housing model still be the answer, or is it drifting out of reach? Only time, and perhaps some policy tweaks, will tell.
