The Profitability of Executive Condominiums (2010 to 2020)

Updated: Sep 5, 2020


Is buying an executive a good investment?
Are Executive Condominiums really your ticket to financial freedom?

Executive Condominiums (ECs) are a unique class of housing - they're HDB properties for the first 10 years, and become fully privatised after that.


But can the profitability of ECs match up to those of private condos?


Let's take a look at the figures over the last 10 years.


Important note:


No ECs other than La Casa were completed (i.e. received Temporary Occupancy Permit) between 2008 to 2013. This is because the Design, Build, and Sell Scheme (DBSS) was meant to replace the EC scheme in 2008, and EC land sales were halted.


The policy later changed, with EC land sales resuming in 2010. DBSS was ultimately suspended in 2011, while the EC scheme survived.


Between 31st January 2010 to 31st January 2020 (the day this article was written), EC prices in Singapore have risen from $649 per square foot, to $932 per square foot - a 43.6 per cent increase over a decade.


(Data is sourced from the 99.co researcher tool)


Average PSF Prices for Executive Condos 2010-2020
Average PSF Prices for Executive Condos 2010-2020

In terms of average price for ECs, you would have paid around $786,000 for an EC unit back in 2010.


Today, the average price of an EC unit has appreciated to about $1.04 million.


Average Quantum Prices for Executive Condos 2010-2020
Average Quantum Prices for Executive Condos 2010-2020

While this is a broad picture (we're not looking at specific unit sizes or locations), it does mean that EC buyers in 2010 are sitting on average investment gains of about $254,000; or an annualised return of about 2.8 per cent per annum.


Let's take a look at how the condo market has performed in the same period.

Average PSF Prices for Private Condos 2010-2020
Average PSF Prices for Private Condos 2010-2020

Across the island, condo prices - on a per square foot basis have appreciated from an average of $1,170 per square foot, to about $1,777 per square foot today - that's about a 51 per cent increase over the past decade, beating ECs.