ECs resold in May 2023 made an average profit of $470k, highest at $995k

For the past few months, we have been covering monthly condo gains and losses. For instance, last month, we noticed that the condo units with at least a 200 per cent gain in April 2023 were held for at least 15 years. We also noted that 32 condo units were sold at a loss in the same month.

Today, we'll be focusing on the executive condominiums (ECs) that were resold in May 2023 (from URA data, captured as of June 14).

Do also note that the data includes EC units that were initially sold by developers. Some of them have since been privatised when they're resold last month.

ECs sold last month recorded an average profit of $470k

In total, there were 215 profitable EC transactions in the resale market in May 2023. Among these transactions, the average profit is around $470,000 (rounded off to three significant figures). Meanwhile, the holding period averaged around eight years. As of June 14, no capital losses by EC units were recorded last month.

The highest capital gain made by an EC in May 2023 was $994,755 by a 1,551 square feet unit from Park Green. The unit was first bought in October 2002 for $565,245. After a holding period of 21 years, it was sold in early May for $1.56 million, translating to a 176 per cent gain.

This also means that it's sold after privatisation. 10 years after an EC reaches its TOP date, there's no restriction on who they can be sold to.

Meanwhile, the lowest capital gain was $44,000 by a 979 square feet unit from La Casa. First bought in May 2013 for $858,000, the unit was sold 10 years later for $902,000. It made a gain of 5.1 per cent.

Top 10 gains made by ECs in May 2023

Condo name	TOP	District	Size (square feet)	Purchase price and date	Sale price and date	Capital gain	Years held	Annualised gain
Park Green	2004	19	1,551	$565k Oct 8, 2002	$1.56 million May 5	$995k 176 per cent	21	4.95 per cent
The Eden At Tampines	2003	18	1,485	$631k Jun 25, 2001	$1.58 million May 3	$949k 150 per cent	22	4.26 per cent
The Topiary	2016	28	2,228	$1.47 million Jan 23, 2013	$2.4 million May 10	$930k 63.2 per cent	10	5.02 per cent
Simei Green Condominium	1999	18	1,194	$410k Oct 22, 2004	$1.21 million May 5	$800k 195 per cent	19	5.86 per cent
The Terrace	2017	19	1,443	$1.14 million Jun 29, 2015	$1.9 million May 5	$765k 67.4 per cent	8	6.65 per cent
The Quintet	2006	23	1,291	$457k Nov 26, 2003	$1.22 million May 5	$763k 167 per cent	20	5.03 per cent
Esparina Residences	2013	19	1,001	$768k Nov 8, 2010	$1.53 million May 29	$760k 99 per cent	13	5.43 per cent
Bellewaters	2017	19	1,238	$911k Aug 28, 2015	$1.67 million May 12	$757k 83.1 per cent	8	7.86 per cent
Pinevale	1999	18	1,292	$487k Feb 8, 2007	$1.24 million May 12	$753k 155 per cent	16	6.02 per cent
The Florida	2000	19	1,227	$537k Aug 20, 1998	$1.29 million May 22	$753k 140 per cent	25	3.57 per cent

Figures (except floor area) in the table are rounded off to three significant figures.

70 per cent of the top 10 EC gainers were sold after the 10-year privatisation

Among the 10 most profitable EC transactions last month, eight were sold after a holding period of at least 10 years. This is even as the average holding period of all the profitable transactions last month was around eight years.

When we looked closer at these 10 transactions, we noticed seven were sold after privatisation. As mentioned earlier, ECs are privatised 10 years after their TOP. This means that projects completed in 2013 or earlier are considered private property and can be sold to foreigners.

Similar to HDB flats, new ECs are subject to a five-year MOP. After that, when they're resold on the resale market between the fifth and ninth year, they can only be sold to Singaporeans and PRs.

This means that after privatisation, EC owners have a bigger pool of buyers they can sell their units to.

Given the recent ABSD hike for foreigners (now 60 per cent), those looking for a more affordable home may also want to consider ECs. As they're all located in the outside central region (OCR), they tend to command lower prices.

60 per cent of the top 10 EC gainers are located in the north-east region

Another thing that caught our eye is that six of the most profitable EC units are located in the north-east region of Singapore.

These include four from Sengkang, one from Punggol and one from Hougang. We should also note that the most profitable EC last month is located in Sengkang.

Meanwhile, the other three units are from Tampines — not too far from the north-east region.

Only one unit in the top 10 is located in the west, at Choa Chu Kang.

Interestingly, when we compare the price trends of ECs in these areas sold in the resale market in the last five years, Choa Chu Kang recorded the highest appreciation of 75.75 per cent.

This is followed by Hougang at 50.98 per cent, Tampines at 45.09 per cent, Punggol at 30.46 per cent and Sengkang at 24.79 per cent.

ALSO READ: How much do you need to earn to buy a new or resale executive condo?

This article was first published in 99.co.