by OrangeTee & Tie Pte Ltd.

ECs fetch strong resale profits as price gap with new units narrows: OrangeTee


Singapore, 12 Oct 2022

SINGAPORE - Executive condominiums (ECs) are fast becoming an attractive option for Housing Board (HDB) upgraders, with nearly 300 ECs yielding $500,000 in resale profit as at Aug 29. 

Nearly all the sampled 4,266 ECs netted around $300,000 in gross profits, as demand far exceeds supply, according to a profit analysis by OrangeTee. 

Of these 4,266 units, 294 yielded a gross profit of at least $500,000 each. The record gross profit for an EC in 2021 was $1.38 million for a resale unit at [email protected], followed by $1.02 million for a resale unit at The Quintet in Choa Chu Kang.

Around 4,000 of the sampled units were sold less than 10 years from the date of purchase, OrangeTee said.

Size also matters when it comes to demand for such properties, as bigger units tend to fetch better prices, the study observed. OrangeTee found that 170 ECs of at least 1,600 sq ft yielded an average gross profit of $455,207 per unit.

For the profitability analyses, OrangeTee calculated the gains and losses of individual EC units by matching URA Realis new sale caveats between 2007 and Aug 21, 2022, to the resale caveats (if any) of the same unit over the same time frame. The calculation did not account for legal fees and interest costs. 

OrangeTee matched 4,266 caveats mined from a database of 26,882 new EC transactions. The rest of the EC units were either not put up for resale or did not have a caveat lodged.

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