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Are Executive Condominiums (ECs) still a good option for home buyers today? They may not be, as buyers are constrained by the amount of loan which they can take up for their EC purchase. This is largely due to the stringent Mortgage Servicing Ratio (MSR) that applies for Executive Condominiums. Even with the maximum combined monthly income ceiling of $16,000, buyers may only qualify for a loan of up to $1 million, requiring them to cover the excess EC cost with cash and/or CPF. With average EC prices starting from $1.4m and above, EC buyers still have to fork out a substantial cash / CPF outlay to afford an EC in 2025. Still, many Singaporeans are drawn to ECs, seeing them as a better value compared to private condos. In 2024, the median transaction price for a new Outside Central Region (OCR) condo unit (900–1,000 sqft) was 42% higher than a similar EC unit. Yet, despite the lower price, EC residents still get to enjoy a comparable lifestyle—with security and full-fledged facilities like swimming pools, gyms, and function rooms. Table 1: Price comparison between a new EC and OCR condo (900 – 1,000sqft) in 2024 Plus, the lower purchase price means a smaller loan amount, which helps reduce interest costs. On top of that, eligible first-time buyers can receive up to $30,000 in grants to offset their initial down payment. Impressive Sales Performances In Recent EC Launches Lumina Grand sold 53% of its units at an average price of $1,464 psf during its launch weekend, while Novo Place moved 57% of its 504 units at an average price of $1,654 psf during its November 2024 launch. When Novo Place opened for a second round of balloting for second-time buyers, it sold another 137 units, bringing total sales to 88%. According to URA caveats, there were 1,185 new EC transactions in 2024. With only a limited number of EC launches each year, buyers have been turning to the remaining supply. As of end-January 2025, the available EC stock had dwindled to just 138 units. What makes ECs so Attractive? Despite the higher upfront costs, buyers remain undeterred for two key reasons. Beyond the lower price, EC buyers aren’t required to sell their existing home before making a purchase. For HDB upgraders, this means they can avoid paying Additional Buyer’s Stamp Duty (ABSD) when buying a new EC. Additionally, EC buyers have the option to use the Deferred Payment Scheme (DPS) at an extra cost, allowing them to pay only a deposit upfront and defer their loan until the EC is completed. This way, they won’t have to manage two mortgage payments while waiting for their new home. With no ABSD payable and the flexibility of the DPS, upgrading to an EC becomes a much smoother process for HDB owners. Why are ECs Becoming Increasingly Expensive? The rise in construction and labor costs has been a significant challenge for property developers, a trend exacerbated by the Covid-19 pandemic. The global supply chain disruptions resulted in a tighter supply of materials, further inflating costs. Coupled with higher inflation rates, developers have faced mounting expenses. Additionally, construction firms are now competing for a limited workforce, as both public sector projects (like the Cross-Island Line and HDB Build-to-Order flats) and private sector developments continue to rise. Another key factor contributing to higher property prices is the escalation in land costs, particularly for new Executive Condominiums (ECs). Developers have been bidding aggressively for EC sites in response to strong market demand. From 2015 to 2024, the average cost of EC land has surged by 164%, increasing from $287 per square foot per plot ratio (psf ppr) to $733 psf ppr. A prime example of this trend is the Tengah Garden Walk EC site, which was awarded to a joint venture between City Development Group and MCL Land for $603 psf ppr in 2021. More recently, in February 2024, another EC site at Plantation Close was awarded to Hoi Hup Realty and Sunway Developments for $701 psf ppr—16% higher than the Copen Grand site, further reflecting the rising costs in the sector. Chart 1: Land cost of ECs since 2015 Thirdly, the harmonisation rule, which took effect on 1 June 2023, has impacted how developers market their properties. Under this new regulation, developers are no longer permitted to sell non-strata areas such as void spaces and air-con ledges. To compensate for the reduced sellable area, developers have adjusted their selling prices, resulting in higher per square foot (psf) pricing. Table 2: Existing launched ECs in the market In 2025, three new ECs are set to launch, with two in the East and one in the West. Here are the upcoming EC launches for 2025: Aurelle of Tampines Estimated launch: Preview in Feb 2025 Planning Region/Area: East/Tampines Distance to Nearest MRT Station: 5-min walk to the upcoming Tampines North MRT Station Number of Units: 760 Developer: Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd The first EC launch of 2025, Aurelle of Tampines, is expected to generate significant interest. This will be the first EC in Tampines since Tenet, which sold 72% of its 618 units upon its launch in December 2022. Residents in the East will be particularly drawn to Aurelle of Tampines, given that Tampines is a well-established town with excellent amenities. By the time buyers collect their keys, the town will feature four shopping malls and two community hubs. Additionally, Tampines is well-connected by transport, with multiple feeder bus services and four MRT stations. As a regional center, Tampines is home to two industrial estates and is conveniently located near commercial hubs such as Changi Business Park, Changi Aviation Park, and Changi Airport. Situated in the heart of Tampines North, a new development area, Aurelle of Tampines will be just a 5-minute walk from the upcoming Tampines North Integrated Transport Hub. This will provide seamless connectivity to the MRT station, air-conditioned bus interchange, community club, hawker center, and a new mall, Parktown Tampines. The Tampines North

The Lentor area in Singapore has rapidly transformed into a new private residential hub, raising questions about whether the surge in new condominiums signals an oversupply risk or a prime investment opportunity. In this article, we will break down the recent launches, sales trends, pricing, and market outlook, so property investors and homebuyers can make informed decisions. Lentor’s Recent Condo Launches and Sales Performance Over the past few years, multiple condominium projects have been launched in Lentor, with most seeing strong buyer demand despite concerns over a potential oversupply. Here’s a look at the key projects: Project Launch Date Total Units Units Sold % Sold Average Price (PSF) Lentor Modern Sep 2022 605 508 84% $1,856 Lentor Hills Residences Jul 2023 598 559 93.3% $2,269 Lentoria Jan 2024 267 60 22% $1,965 Lentor Mansion Mar 2024 533 400 75% $2,200 (Source) What Do These Sales Figures Tell Us? Despite multiple project launches, demand remains strong, particularly for smaller units. In fact, one- and two-bedroom units in most Lentor projects have been nearly sold out. As of February 2025, only 159 units remain unsold across all major projects, representing just 6.4% of the total launched inventory. This suggests that the fear of oversupply may be overblown, especially since new launches in other areas of Singapore have struggled to achieve similar take-up rates. Lentor in the Context of the Broader Singapore Market Lentor is part of District 26, which had only 2,966 non-landed private homes as of Q4 2024, making it one of the districts with the lowest housing supply in Singapore. This limited supply is crucial because it helps to stabilize property prices and drive future appreciation. Additionally, the nationwide property market has shown resilience, with analysts forecasting a 2% to 4% price increase in 2025 due to strong demand and limited land supply. Will Lentor’s Property Prices Appreciate? Key factors supporting future price growth in Lentor: Conclusion: Is Lentor an Oversupply Risk or an Investment Opportunity? While the initial wave of launches raised concerns about oversupply, the sales figures and market fundamentals tell a different story. For property investors and homebuyers, Lentor presents an attractive investment opportunity—especially for those looking at long-term capital appreciation. Would you like personalized advice on investing in Lentor? Contact me today at 8826 3821, and let’s explore the best options for your real estate goals!

The Urban Redevelopment Authority (URA) has extended the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive (SDI) Scheme for another five years. These initiatives aim to rejuvenate Singapore’s CBD real estate by encouraging the redevelopment of aging commercial buildings into mixed-use developments in Singapore. For property investors in Singapore, this presents a golden opportunity to capitalize on the transformation of the city’s prime real estate. Understanding the CBDI and SDI Schemes CBD Incentive Scheme (CBDI) The CBD Incentive Scheme was first introduced in 2019 to incentivize the redevelopment of older office buildings into mixed-use properties. Targeting precincts like Anson, Cecil Street, Robinson Road, Shenton Way, and Tanjong Pagar, the scheme offers 25% to 30% additional Gross Floor Area (GFA) for qualifying properties. In the latest 2025 update, the URA has also allowed long-stay serviced apartments in CBD Singapore, particularly in Anson and Cecil Street, broadening the scope for developers and investors. Strategic Development Incentive (SDI) Scheme The SDI scheme is designed for strategic areas like Orchard Road and Marina Centre, focusing on large-scale collaborative redevelopment between adjacent buildings. This encourages urban rejuvenation by introducing new commercial, retail, and residential property investment opportunities in Singapore. Why These Schemes Matter for Property Investors The extension of these schemes will significantly impact the Singapore property investment landscape, creating redevelopment opportunities in Singapore’s CBD. Here are some key reasons why investors should take note: 1. Unlocking Redevelopment Potential Several buildings have already undergone transformation under these schemes, including: With the extended incentives, more aging office buildings could be redeveloped into Singapore mixed-use developments, unlocking higher property values and investment potential in Singapore’s CBD. 2. Rising Property Values in the CBD With increased incentives to redevelop, properties that once housed purely commercial offices will now feature a blend of residential units, commercial spaces, and serviced apartments. This will make CBD properties in Singapore more attractive to homebuyers and investors, leading to higher rental yields and capital appreciation. 3. Diversification of Investment Opportunities The transformation of the CBD into a 24/7 live-work-play district will create new opportunities for real estate investment in Singapore, especially in sectors like: This diversification will attract different types of investors looking for high rental yield properties in Singapore. Key Considerations for Investors and Developers While these schemes provide exciting opportunities, investors should carefully assess the following factors: Eligibility Criteria Properties must meet specific criteria, including a minimum age requirement of 20 years and site area conditions. Investors should verify these details before committing to a redevelopment investment in Singapore. Market Demand and Urban Trends Understanding the demand for mixed-use properties in Singapore is crucial. With more companies adopting hybrid work arrangements, the demand for traditional office spaces has declined, making residential and hospitality developments in the CBD more viable. Sustainability and Green Initiatives The URA encourages eco-friendly developments, so developers incorporating green building features and sustainable designs will benefit from government incentives and long-term value appreciation. The Future of CBD Real Estate Investment in Singapore With the Singapore government’s urban redevelopment plans, the CBD is set to become a dynamic, multi-functional district. Investors who act early and secure properties with redevelopment potential in Singapore’s CBD can enjoy significant returns in the years to come. Whether you’re a seasoned investor or exploring your first property investment in Singapore, understanding these schemes is crucial to making informed decisions. As Singapore’s urban landscape evolves, those who stay ahead of market trends will reap the benefits of capital appreciation and rental growth. Stay Updated on Singapore Real Estate Trends For more insights on Singapore property investment, new launch condos in Singapore, and high rental yield properties, stay connected with our expert updates. If you’re keen on exploring CBD redevelopment opportunities, get in touch with Dominic Choa Real Estate today!