A PropNex survey conducted on 5 August 2024, involving nearly 1,250 HDB homeowners, found that over 40% of respondents believe Executive Condominiums (ECs) remain a key stepping stone for middle- and upper-middle-income families looking to transition into private housing.
Introduced in the 1990s, ECs were designed to bridge the gap between public HDB flats and fully private residences, especially for families exceeding BTO income limits but finding private condos unaffordable.
Income Ceilings and Rising EC Prices
Current income ceilings:
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BTO flats: $14,000 per month
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ECs: $16,000 per month
Despite this, rising EC prices have led to affordability concerns:
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38% of respondents felt ECs were no longer affordable
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17% considered them extremely unaffordable
Median EC prices (per square foot):
| Year | Median Price (S$ psf) |
|---|---|
| 2017 | $798 |
| 2023 | $1,417 |
| H1 2024 | $1,500+ |
Proposed Policy Changes
To improve affordability, PropNex CEO Ismail Gafoor suggested raising income ceilings and adjusting the Mortgage Servicing Ratio (MSR). Survey findings include:
| Policy Suggestion | Support Level | Suggested Change |
|---|---|---|
| Raise Income Ceiling | 55% | Up to $18,000 or higher |
| Increase MSR | 52% | From 30% to 35–55% |
Concerns and Supply Solutions
While many respondents supported policy changes, some expressed concerns:
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Raising the income ceiling or MSR could allow wealthier buyers to dominate the market
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Developers might respond by increasing EC prices further
A commonly proposed solution is to expand EC land supply through the government’s land sales program, helping to manage land costs and stabilize prices for eligible buyers.
Key Takeaway:
ECs continue to serve as a critical upgrade path from public to private housing, but rising prices and affordability concerns highlight the need for policy adjustments and careful supply planning.
