Yahoo Finance Nearly all ECs resold in the past 15 years made a profit averaging S$300k
4,263 or 99.9% of the Executive Condominium (EC) units sold in the resale market between 2007 and end-August 2022 yielded an average gross profit of S$295,904 each. Most of these units were sold less than 10 years after they were first bought.
The findings were shared by OrangeTee & Tie in its latest Market Watcher Series report, which sampled the transactions of 4,266 ECs by matching the new sale and resale caveats of the same unit.
This shows the popularity of Executive Condos, which are a hybrid form of public and private housing in Singapore. While new ECs come with government subsidies, they are sold by private developers and come with the same range of facilities found in private properties.
After the five-year Minimum Occupation Period (MOP), ECs can be resold to PRs. The pool of buyers is further widened after 10 years of their Temporary Occupation Period (TOP), as foreigners are allowed to buy them.
Besides the average profit of S$300,000 for each unit, here are a few findings that caught our eye.
1. 7% of the resold ECs earned a profit of at least S$500,000
Among the ECs sold in the resale market in the last 15 years, 294 units yielded a gross profit of at least S$500,000 each.
This included the S$3.29 million resale transaction in 2021 for a unit at CityLife@Tampines, yielding the highest profit among the ECs sampled at S$1.38 million. With the unit first bought in 2013 for S$1.91 million, the holding period was 8.6 years.
Since the project’s launch in 2012, the EC has seen a price appreciation of 53.34%. The project hit TOP in 2016 and has since finished its MOP.
Nevertheless, the highest proportion of the ECs resold (34%) made a gain ranging from S$200,000 to less than S$300,000.
2. Larger ECs are more likely to earn a higher profit
Perhaps due to the increasing demand for bigger space, larger ECs tend to make the highest profit.
The graph below also shows that as unit size increases, the average profit goes up.
Among the ECs sampled, 170 units that spans at least 1,600 sq ft had profits averaging S$455,207.
This includes the most profitable EC transaction mentioned above, in which the unit spans 3,864 sq ft. This works out to a price psf of S$851 — a 72% increase from the S$495 psf when it was first bought.
Interestingly, among the top 10 most profitable EC units with a holding period of less than 10 years, half came from CityLife@Tampines, with unit sizes ranging from 2,691 to 3,864 sq ft.
Executive Condos for sale
North Gaia
45 Yishun Cl · D27
5
4
1,593 sqft
$1,950,000
Sceneca Residence / Sceneca Square
28 Tanah Merah Kechil Link · D16
2
2
861 sqft
$1,715,000
Bartley Vue
6 Jln Bunga Rampai · D19
3
2
1,044 sqft
$1,926,000
One Bernam
1 Bernam St · D2
2
2
732 sqft
$1,868,000
North Gaia
45 Yishun Cl · D27
4
3
1,313 sqft
$1,600,000
Tenet
91 Tampines St 62 · D18
5
4
1,561 sqft
$2,078,000
North Gaia
25 Yishun Cl · D27
3
2
980 sqft
$1,210,000
North Gaia
39 Yishun Cl · D27
3
2
969 sqft
$1,140,000
North Gaia
39 Yishun Cl · D27
4
4
1,313 sqft
$1,400,000
North Gaia
39 Yishun Cl · D27
3
3
958 sqft
$1,050,000
North Gaia
39 Yishun Cl · D27
3
3
1,001 sqft
$1,100,000
North Gaia
45 Yishun Cl · D27
5
4
1,593 sqft
$1,900,000
North Gaia
45 Yishun Cl · D27
3
2
1,001 sqft
$1,100,000
Tenet
91 Tampines St 62 · D18
5
4
1,572 sqft
$2,200,000
Tenet
85 Tampines St 62 · D18
3
2
893 sqft
$1,216,000
North Gaia
45 Yishun Cl · D27
3
2
960 sqft
$1,003,200
North Gaia
45 Yishun Cl · D27
3
3
1,076 sqft
$1,200,000
North Gaia
39 Yishun Cl · D27
4
4
1,593 sqft
$2,070,000
North Gaia
31 Yishun Cl · D27
4
3
1,313 sqft
$1,600,000
North Gaia
39 Yishun Cl · D27
3
2
969 sqft
$1,142,000
North Gaia
39 Yishun Cl · D27
3
2
969 sqft
$1,140,000
North Gaia
45 Yishun Cl · D27
3
2
958 sqft
$1,100,000
North Gaia
45 Yishun Cl · D27
3
2
1,001 sqft
$1,210,000
North Gaia
43 Yishun Cl · D27
4
3
1,313 sqft
$1,674,000
North Gaia
45 Yishun Cl · D27
3
2
1,001 sqft
$1,200,000
North Gaia
27 Yishun Cl · D27
3
2
969 sqft
$1,167,000
North Gaia
39 Yishun Cl · D27
3
3
969 sqft
$1,140,000
North Gaia
31 Yishun Cl · D27
3
2
958 sqft
$1,142,000
Tenet
85 Tampines St 62 · D18
5
4
1,561 sqft
$2,120,000
North Gaia
27 Yishun Cl · D27
3
2
980 sqft
$1,195,000
North Gaia
45 Yishun Cl · D27
3
2
1,001 sqft
$1,186,868
North Gaia
45 Yishun Cl · D27
4
3
1,313 sqft
$1,608,668
North Gaia
45 Yishun Cl · D27
3
3
969 sqft
$1,131,313
North Gaia
39 Yishun Cl · D27
4
4
1,389 sqft
$1,837,000
North Gaia
29 Yishun Cl · D27
3
3
1,076 sqft
$1,408,000
The Amore
57A Edgedale Plains · D19
3
2
990 sqft
$1,288,000
The Rainforest
341 Choa Chu Kang Ave 3 · D23
3
2
947 sqft
$1,300,000
Bellewaters
29 Anchorvale Cres · D19
4
3
1,163 sqft
$1,700,000
The Topiary
21 Fernvale Lane · D28
3
2
1,055 sqft
$1,450,000
The Rainforest
345 Choa Chu Kang Ave 3 · D23
3
2
958 sqft
$1,250,000
The Tampines Trilliant
17 Tampines Ctrl 7 · D18
3
3
1,130 sqft
$1,490,000
Sol Acres
20 Choa Chu Kang Grove · D23
3
2
926 sqft
$1,288,000
The Criterion
15 Yishun St 51 · D27
4
2
1,119 sqft
$1,595,000
Sol Acres
10 Choa Chu Kang Grove · D23
3
2
850 sqft
$1,150,000
Sol Acres
20 Choa Chu Kang Grove · D23
3
2
926 sqft
$1,249,999
Blossom Residences
32 Segar Rd · D23
3
2
1,055 sqft
$1,350,000
Skypark Residences
1 Sembawang Cres · D27
4
3
1,313 sqft
$1,700,000
Heron Bay
55 Upp Serangoon View · D19
4
2
1,281 sqft
$1,600,000
Wandervale
359 Choa Chu Kang Ave 3 · D23
3
3
1,098 sqft
$1,538,000
Westwood Residences
194 Westwood Ave · D22
4
3
1,152 sqft
$1,450,000
Parc Life
23 Sembawang Cres · D27
2
2
764 sqft
$1,088,000
Twin Waterfalls
102 Punggol Walk · D19
3
3
1,109 sqft
$1,450,000
Waterbay
47B Edgefield Plains · D19
3
3
1,690 sqft
$1,830,000
The Criterion
7 Yishun St 51 · D27
3
2
872 sqft
$1,150,000
The Topiary
25 Fernvale Lane · D28
5
5
2,228 sqft
$2,500,000
Signature At Yishun
27 Yishun St 51 · D27
3
2
947 sqft
$1,199,000
Parc Life
21 Sembawang Cres · D27
3
3
1,055 sqft
$1,400,000
The Brownstone
158 Canberra Dr · D27
3
2
958 sqft
$1,250,000
Signature At Yishun
41 Yishun St 51 · D27
3
2
1,098 sqft
$1,300,000
Bellewoods
114 Woodlands Ave 5 · D25
3
2
1,216 sqft
$1,330,000
Bellewaters
11 Anchorvale Cres · D19
3
2
1,238 sqft
$1,720,000
The Brownstone
154 Canberra Dr · D27
3
3
958 sqft
$1,300,000
The Clearwater
12 Bedok Reservoir View · D16
2
2
980 sqft
$1,400,000
Sol Acres
8 Choa Chu Kang Grove · D23
3
2
872 sqft
$1,108,888
Signature At Yishun
29 Yishun St 51 · D27
3
3
1,098 sqft
$1,340,000
Bellewaters
11 Anchorvale Cres · D19
4
4
1,335 sqft
$1,780,000
Bellewaters
29 Anchorvale Cres · D19
3
3
1,410 sqft
$1,738,000
Parc Life
35 Sembawang Cres · D27
3
2
1,109 sqft
$1,428,000
Sol Acres
14 Choa Chu Kang Grove · D23
2
1
614 sqft
$880,000
Park Green
12 Rivervale Link · D19
3
2
1,938 sqft
$1,728,888
3. Narrowing price gap between new and resale ECs
The report also shared that the median price of resale ECs have been rising faster than new ECs. Between 2019 and the first eight months of 2022, prices of resale ECs have grown by 30.3% from S$856 psf to S$1,115 psf.
In the same period, prices of new ECs have risen by 15.9% from S$1,101 psf to S$1,276 psf. This led to a narrower price gap, from 28.6% in 2019 to 14.4% in the first eight months of this year.
Upcoming ECs to be launched this year include Copen Grand at Tengah and Tenet at Tampines. Launched for e-application on 7 October, Copen Grand will also be Tengah’s first EC, with prices starting at S$1.08 million (S$1,338 psf) for a two-bedroom plus study.
Would you consider buying an EC for investment? Let us know in the comments section below.
If you found this article helpful, 99.co recommends Upcoming Executive Condo sites in 2022 to 2024: Which EC should you go for? and BTO vs Resale vs EC: Which is best for investment?
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