The Financial Network

Is buying a new Executive Condo guaranteed to be profitable?

Buying an Executive Condo is commonly perceived by many Singaporeans as a sure way to make profits, but how true is this?

To answer this, we examined 14 condos that attained their 5-year Minimum Occupation Period (MOP) between 2020 and 2022

Specifically, our analysis focuses on transactions that took place within 12 months of attaining the MOP, and the MOP date is computed based on 5 years after the project attains Temporary Occupation Permit (TOP) status.

Data from Edgeprop

Out of the 14 Executive Condo Projects encompassing over 1,500 transactions, only one resulted in a loss of $10,512. This outlier transaction involves a unit purchased in Oct 2013 at $1,092 PSF, which contrasts with the majority of units that transacted between $700-$800 PSF in 2013 for Ecopolitan. Excluding this exception, all other transactions are profitable.

On average, buyers across the 14 projects realized an average profit of $370,021, translating to an average annualized return of 5.29%. Ignoring that 1 outlier transaction, 100% of the homeowners who bought an EC, waited 5 years for MOP, and subsequently sold within 12 months of MOP made profits!

This shows the attractiveness and profitability of buying new Executive Condo Projects for investments. Based on the past transactions analyzed, buying a new EC is certain to bring in profits for the homeowner.

If you are thinking of capitalizing on this unique property class for investment, there are quite a number of upcoming EC Projects to be launched in 2024. As such, securing the best mortgage package for your property purchase is crucial. As always, you can reach out to one of our mortgage experts for a free, unbiased consultation via the link below:

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