Are Executive Condominiums Still Affordable Now?
Over the years, Executive Condominiums, better known as ECs, have seen prices rise sharply compared to when they were first introduced. In the past, ECs were widely considered affordable because the per square foot price was relatively low, making them accessible to more families. Times have changed, and buyers today are facing much higher entry prices. If you are curious about how much EC prices have grown since the early launches, you can check out my previous article Is Executive Condominium Still Worth Buying in Singapore? for a detailed comparison.
So how much do you need to prepare if you are planning to buy a 3-bedroom or 4-bedroom EC today? Let us take Otto Place Executive Condominium as an example. Otto Place, launched in July 2025 at Tengah Plantation Close, consists of 600 units ranging from 872 to 1,195 square feet (sqft). Its launch prices were between $1,621 and $1,909 per square foot (psf).
The income ceiling to qualify for an EC purchase is currently set at $16,000 per household. This means a married couple buying together must not exceed a combined monthly income of $16,000. Imagine a couple, Glenn and Jenni, both age 35, whose combined income adds up to exactly this ceiling. Based on the bank stress test interest rate of 4% and under the Mortgage Servicing Ratio framework, their maximum loan amount would be approximately $1,005,414.
Now let us consider what this means in practice. A 4-bedroom unit at Otto Place was priced at around $2,179,000. If Glenn and Jenni wanted to upgrade from their HDB flat to this EC, they would need to prepare an additional cash amount of about $1,173,586 on top of their maximum loan. This calculation does not even include the Buyer Stamp Duty or legal fees, which add further to the upfront cost.
Let’s look at another scenario. For a 3-bedroom, it was sold at about $1,882,000. Using the same calculation, Glenn and Jenni would need an extra $876,586 in cash, also excluding buyer stamp duty and legal costs. More importantly, this shortfall must be covered within the payment timeline before other modes of financing can take over. If they are still holding on to their HDB flat, the sale proceeds would eventually help cover the gap, but until then, they would need to prepare this significant amount.
This naturally raises the question: does not having such large cash reserves mean couples like Glenn and Jenni are unable to upgrade to their dream Executive Condominium? The answer is not necessarily. While the numbers may seem daunting, there are strategic solutions and financial planning methods that can help couples in similar situations move forward with their EC purchase.
If you happen to find yourself in Glenn and Jenni’s position and want to understand how you are able to purchase your next dream home, feel free to contact me for a complimentary, no-obligation consultation. Together, we can explore your affordability, work out a tailored financial plan, and chart the best pathway to secure your dream Executive Condominium.
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