A recent PropNex survey shows that over half of HDB flat owners believe new Executive Condominiums (ECs) are becoming unaffordable. Conducted between March and April 2024 with approximately 1,250 participants, the survey assessed how ECs meet the housing needs of middle- to upper-middle-income Singaporean families aspiring to move into private property.
Rising EC Prices
URA Realis data indicates a significant increase in EC prices over the past few years:
| Year | Median Price (S$ psf) |
|---|---|
| 2017 | 798 |
| 2023 | 1,417 |
| H1 2024 | 1,500+ |
Despite the rise, 44% of respondents still consider ECs an important stepping stone to private homeownership.
Policy Suggestions to Improve Affordability
PropNex CEO Ismail Gafoor proposed measures to ease affordability pressures:
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Raise the monthly household income cap above S$16,000
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Adjust the Mortgage Servicing Ratio (MSR), currently at 30%
Survey opinion on MSR adjustments:
| Option | Support |
|---|---|
| Revise MSR | 52% |
| Maintain current rate | 48% |
Note: Wong Siew Ying, PropNex’s Head of Research, cautioned that increasing the MSR could attract wealthier buyers, potentially driving EC prices higher.
Income Distribution and Funding Gaps
Survey participants reported the following income breakdown:
| Monthly Household Income | Percentage of Respondents |
|---|---|
| Less than S$5,000 | 28% |
| S$5,000 – S$10,000 | 38% |
| S$10,001 – S$16,000 | 22% |
| More than S$16,000 | 12% |
Funding Gap Example:
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Typical loan under current income cap: S$909,000
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Median EC price: S$1.5 million
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Funding gap: ~S$295,000
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Combined with down payment: ~S$600,000, requiring savings or family support
Recommendations to Ease Demand-Side Pressure
Wong suggested expanding EC land supply through the GLS Confirmed List:
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Currently: 2 EC sites launched annually
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Proposed: 4 EC sites per year
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Objective: moderate competition and stabilize land prices
Recent Record EC Land Sales
Notable recent EC land transactions illustrate the high competition and rising prices:
| Site | Developer / JV | Land Price | Price psf ppr |
|---|---|---|---|
| Pasir Ris | CNQC Intl + China Communications + ZACD | S$557 million | S$729 psf ppr |
| Canberra Crescent | Kheng Leong + Low Keng Huat | S$279 million | S$793 psf ppr |
| Tampines EC (2023) | Sim Lian Group | N/A | ~S$720 psf ppr |
Key Takeaways:
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ECs remain a critical stepping stone to private housing but are becoming less affordable
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Policy adjustments (income cap, MSR) and expanded land supply could help ease affordability pressures
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Strong competition among developers continues to push EC land prices higher, affecting future launch pricing
