Executive condominiums, the hybrid housing option designed to bridge the gap between public and private residential properties in Singapore, are facing increasing scrutiny regarding their affordability as prices continue to climb. New EC units now typically command prices between S$1,300,000 and S$1,750,000 for three-bedroom configurations up to 1,200 square feet, with recent launches such as Lumina Grand EC achieving an average price of S$1,464 per square foot despite selling 53% of available units at launch.
Singapore’s hybrid housing solution faces an affordability crisis as new EC units push beyond the $1.3 million mark.
The rising cost trajectory presents a concerning trend for the “sandwich class” demographic that ECs were originally designed to serve. The average price of newly launched ECs has increased by 24.1 percent since 2024, putting additional pressure on potential buyers. While these properties remain approximately 20-35% cheaper than comparable private condominiums, the minimum gross monthly household income required to comfortably afford a new EC has escalated to an estimated S$12,000-S$14,000, approaching the maximum income ceiling of S$16,000 for eligible buyers.
This narrowing affordability window is particularly problematic as median household income growth has failed to keep pace with the surge in EC prices. The requirement that applicants must not own any private property interest further restricts options for middle-income buyers who might otherwise consider alternatives. Unlike private condominiums, EC owners must also comply with both TDSR and MSR requirements, which can significantly constrain their loan eligibility and purchasing power.
Despite these affordability challenges, market demand for ECs remains robust, with 80% of property industry respondents affirming their continued relevance and desirability in Singapore’s residential landscape. The appeal stems from EC developments offering condominium-style facilities—swimming pools, gymnasiums, and function rooms—at entry prices markedly below those of private developments, with the price differential for similar-sized units potentially exceeding S$600,000.
The government’s role in maintaining EC affordability through subsidies and lower land costs for Outside Central Region (OCR) locations has become increasingly critical as prices escalate. The 99-year leasehold structure and the prospect of full privatization after a decade, enabling resale to foreigners and companies, continues to enhance the investment proposition.
However, as the price gap between ECs and new HDB Build-To-Order flats widens considerably, while simultaneously narrowing relative to private condominiums, the fundamental question emerges whether ECs can continue fulfilling their intended role of serving middle-income Singaporean homebuyers in the current market environment.
