Executive Condo Resale Market Set To Thrive In 2023

Executive condominiums (EC) have always been somewhat of a darling of Singapore’s residential property market owing to their more affordable pricing, offering an accessible entry into the private home segment.

In 2022, new EC project launches such as Copen Grand and Tenet grabbed media headlines with their new benchmark prices – surpassing the $1,300-psf mark. Overall, the median price of new sales ECs came in at $1,338 psf in 2022, up by 13.9% from $1,175 psf in 2021. With higher benchmark prices for EC launches as well as home prices rising in general, it has led to more buyers turning to the resale EC units for homes. The healthy demand, coupled with the limited resale stock have helped to bump up EC resale prices, with some units booking substantial gains. In 2022, more than 2,000 ECs changed hands in the resale market.

Here, PropNex looks at the most profitable EC projects in the resale market in 2022, ranking the top 10 performing projects according to their gross profits. First, some details about the methodology which entails a comparison of resales caveats. The gains garnered for the units were derived by matching the EC resale transactions in 2022 with their previous purchase prices according to caveats lodged. The average profit was subsequently computed on a project basis.

Newer EC projects dominate top 10 resale gainers list
By ranking the average profit, the top 10 resale EC projects in 2022 comprised mostly newer projects that were completed in the 2010s – some having recently achieved their 5-year minimum occupation period (MOP) (see Table 1). The top 10 most profitable projects had average profits ranging from $470,000 to $630,000. The oldest project on the list is Windermere which was completed in 1999. Unsurprisingly, most of the projects that made the top 10 list are developments that have attractive locational or physical attributes, such as being next to a waterbody (Twin Waterfalls, RiverParc Residence, Bellewaters) or close to an MRT station (Nuovo, Citylife @ Tampines, The Rainforest).

Table 1: Top 10 resale condo projects^ in terms of average gross profit*

Source: PropNex Research, URA Realis

^projects with fewer than 10 transactions in the month are excluded from this analysis
*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.
#Annualised gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] ^{time period in years}-1
Analysis was done based on available data from URA Realis

The most profitable EC project, Nuovo in District 20, recorded 14 resale transactions in the year, achieving gains of more than $630,000 on average for each transaction. The project is within walking distance from the Yio Chu Kang MRT station and the newly-opened Lentor MRT station, as well as several amenities such as the Ang Mo Kio 628 market, Yio Chu Kang Bus Interchange, Ang Mo Kio Thye Hua Kwan Hospital and schools, including Anderson Primary School, Presbyterian High School, and Anderson-Serangoon Junior College. The project is slightly older, having been completed in 2004.

Newly MOP-ed EC projects dominate top 10 most popular projects
With the dwindling supply of unsold mass market homes in 2022 as well as higher entry prices for new launches, many buyers have been dipping into the resale condo and EC projects for more affordable options. In 2022, by ranking the projects in terms of resale volume, the top 10 most transacted EC projects comprised mostly recently MOP-ed EC projects (see Table 2). Many of these projects are almost brand new and are mostly in good physical condition – a plus for owner occupiers looking to move in quickly. While these projects are not the most centrally-located, they are located in new neighbourhoods and are near to LRT stations.

Table 2: Top 10 resale EC projects^ in terms of number of units transacted

Source: PropNex Research, URA Realis

*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.
#Annualised gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] ^{time period in years}-1
Analysis was done based on available data from URA Realis

The top-selling resale project was Bellewaters, a fairly new project that was completed in 2017. The project in Sengkang in District 19, have sold 134 units on the resale market in 2022, with average gains of nearly $473,000 or average annualised gains at 6.4% per year. The project is located at the fringe of Sengkang town, and is within walking distance to Punggol River and Sengkang Riverside Park.

The second top selling EC project was The Terrace which shifted 120 units on the resale market. The resale units that were sold in 2022 enjoyed average gains of nearly $470,000 per transaction, representing an average annualised gains of 6.8% per year. The project is located along the Punggol Waterway Park and next to Kadaloor LRT station on the Punggol LRT line.

Meanwhile, the third most popular project was The Vales which sold 118 units in 2022. The resale units sold reaped an average gains of more than $423,000 per transaction, at an impressive average annualised gains of 7.2% per year.

Spacious EC units make for the most expensive resale deals
Some EC projects had buyers shelling out more than $2 million for a resale unit in 2022. That is way higher than the EC median resale price of $1.24 million, and even surpassed the median sale price for new EC launches at $1.36 million.

Table 3: Top 10 EC resale transactions with highest price quantum in 2022

Source: PropNex Research, URA Realis

The most expensive resale EC transaction in 2022 was a 14th floor unit at The Tampines Trilliant which went for $2.35 million (see Table 3). The unit has a spacious floor area of 2,465 sq ft, taking its unit price to $953 psf – a compelling price in today’s market. The project is located in the mature town of Tampines, within walking distance to the Tampines MRT station on the Downtown Line and East-West Line as well as a myriad of amenities such as My Tampines Hub, Tampines Mall, Tampines One etc.

Two units were tied as the second most expensive EC resale transactions in 2022. They were another 14th floor unit in Tampines Trilliant, as well as a 17th floor unit at Nuovo – both were transacted for $2.3 million each. The unit at Tampines Trilliant which was sold in November spanned 2,110 sq ft, translating to a unit price of $1,090 psf. Meanwhile, the 2,594-sq ft Nuovo EC unit which was sold in July had a unit price of just $887 psf – one could say it is a steal in today’s market.

The third most expensive EC resale deal was done at 1 Canberra in Sembawang. The 13th floor unit which spans over 2,700 sq ft – a generous floor area that is a rarity in today’s market – had fetched $2.28 million or $841 psf.

Looking at the top 10 EC resale transactions with the highest unit pricing, all had unit prices crossing the $1,400-psf mark. For comparison, the overall median unit price of resale ECs came in at $1,130 psf in 2022, up by 17.3% from $963 psf in 2021. Notably, six out of the top 10 most expensive transactions on a per square foot ($psf) basis were for units at Esparina Residences.

Table 4: Top 10 transactions with highest unit price ($PSF) in 2022

Source: PropNex Research, URA Realis

In terms of unit pricing, the most expensive transaction on a per square foot ($psf) basis was for a 16th floor unit and another 5th floor unit at Esparina Residences which were sold for $1,448 psf, based on a resale price of $1.45 million over 1,001 sq ft of space (see Table 4). The project is located in District 19, in the heart of Sengkang, and is within walking distance to the Buangkok MRT station. These two transactions are record highs for the project as well as for EC resale units.

The second most expensive EC unit on a per square foot basis was for a unit at Tampines Trilliant. The 11th floor unit – with a floor area of 1,001 sq ft – was sold for nearly $1.44 million, reflecting a unit price of $1,438 psf – a record high for the project.

The next most expensive transaction on a per square foot basis was for a 7th floor unit at The Brownstone. The newly-MOPed EC project was completed in 2017. The property which spans 732 sq ft was sold for $1.05 million in December last year, reflecting a unit price of $1,435 psf. The Brownstone is located a stone’s throw away from the Canberra MRT station on the North-South Line in Sembawang.

Brighter outlook for EC resale market in 2023
The EC resale market is poised to thrive further in 2023, with new projects hitting their 5-year MOP this year, injecting fresh units into the resale market. It is estimated that more than 4,000 units across six projects could attain their MOP in 2023 (see table 5). This will offer more buying opportunities in the resale market and will help to support pricing.

Table 5: EC Projects expected to attain Minimum-occupation-period (MOP) in 2023

Source: PropNex Research, URA

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