
In Singapore’s ever-evolving property landscape, Executive Condominiums (ECs) have long served as a bridge for middle-income households who earn too much to qualify for Build-To-Order (BTO) flats but may find private properties financially out of reach. However, with rising property prices, the current income ceiling of $16,000 for EC eligibility may no longer align with market realities.
The Role of Executive Condominiums
Introduced in 1996, ECs were designed to cater to the “sandwich class” – those earning above the BTO eligibility cap but still requiring an affordable homeownership option. Developed by private developers, ECs are initially subject to certain Housing & Development Board (HDB) regulations before becoming fully privatized after ten years. Traditionally, the income ceiling for ECs has been set $2,000 above the BTO limit, which currently stands at $14,000.
The Impact of Rising Property Prices
Over the past few years, Singapore has witnessed a significant surge in property prices. Between 2020 and 2024, the HDB Resale Price Index increased from 131.9 to 187.9, while the SRX Property Price Index for Private Non-Landed properties climbed from 200.8 to 276.8. ECs, sitting between these two property types, have inevitably followed suit in price increases.

For example, the recent land tender for an EC site at Jalan Loyang Besar in Pasir Ris set a new record with a top bid of $729 per square foot per plot ratio (psf PPR). With additional costs factored in, the estimated selling price of these EC units could reach approximately $1,500 per square foot, meaning a 1,000-square-foot EC unit may cost around $1.5 million.
The Affordability Dilemma
Given the Mortgage Servicing Ratio (MSR) cap of 30%, a household earning the maximum EC-eligible income of $16,000 per month can only allocate $4,800 towards monthly mortgage repayments. At an interest rate of 3% over a 25-year loan tenure, the monthly repayment for a $1.125 million loan (which covers 75% of a $1.5 million property) would be approximately $5,335—exceeding the MSR limit. Even with a 30-year loan tenure, the repayment would be around $4,743, barely within the allowable range.
These calculations suggest that households earning at the upper limit of the EC income threshold may struggle to afford ECs unless they have substantial savings for a higher down payment or are willing to extend their loan tenure significantly.
Should the Income Ceiling Be Adjusted?
With EC prices climbing closer to private property levels, it may be time for policymakers to reconsider the $16,000 income ceiling. If ECs are to remain a viable option for middle-income families, adjustments to the income cap or financing regulations may be necessary.
As the housing market continues to evolve, ensuring ECs remain an affordable stepping stone for aspiring homeowners is crucial. Whether through policy adjustments or alternative financing solutions, addressing these affordability concerns will be essential to maintaining ECs’ relevance in Singapore’s housing ecosystem.
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