Commentary on New Executive Condominium (EC) Policy Changes

Singapore, 8 May 2026 – The Ministry of National Development (MND) announced several measures that will have a significant impact on the executive condominium (EC) market. These changes include the extension of the Minimum Occupation Period (MOP), the removal of the Deferred Payment Scheme (DPS) and an increase in wait-time for second-time buyers. 

Extension of Minimum Occupation Period 

“Previously, EC owners could sell their units to Singaporeans and Permanent Residents (PRs) after fulfilling a five-year Minimum Occupation Period (MOP), with the development becoming fully privatised after 10 years, allowing sales to foreigners. 

Under the new changes, this timeline has been extended, owners can now only sell to Singaporeans and PRs after 10 years, and to foreigners after 15 years. This means ECs will take longer to reach full resale flexibility, reinforcing their role as a housing option for owner-occupiers rather than short-term investment.

This means that buyers will need to commit to a longer holding period. As such, the extended MOP is likely to attract more genuine owner-occupiers, while reducing demand from investment-driven buyers.” said Marcus Chu, Chief Executive Officer, ERA Singapore. 

“We anticipate this change to have a moderating effect on EC resale transaction volumes for the foreseeable future. Historically, the five-year mark has served as the primary resale window for the EC market, as owners look to capitalise on their first exit opportunity.

By increasing the MOP holding period to 10 years or more, this will shift the bulk of resale EC transactions much further down the line. As a result, EC buyers seeking to hold their property for only five years will likely reconsider their purchasing decisions, which will leave the market to owner-occupiers prioritising long-term stay over capital gains,” Chu added. 

The Impact of the Removal of the Deferred Payment Scheme (DPS) on Second-Time Buyers 

“The DPS previously allowed buyers of newly launched ECs to pay a 20% downpayment, with the remaining 80% deferred until the project obtained its Temporary Occupation Permit (TOP).  With its removal, buyers will now need to service their loans progressively based on the construction stage of the development.

This change is expected to level the playing field for first-time buyers. While second-time buyers could previously tap on proceeds from the sale of their existing homes to fund their EC purchase, first-time buyers do not have the same financial advantage. 

In addition, second-time buyers will now need to service two housing loans concurrently, for their existing home and the new EC unit, until their first property is sold. This raises the financial threshold required and is likely to narrow the pool of eligible second-time buyers. 

The removal of DPS may also encourage greater financial prudence among buyers, as purchases will need to be backed by stronger upfront financial readiness.  

Furthermore, the newly introduced two-year wait-out period for second-time buyers before they can purchase a new EC could further reduce their participation rate, potentially, improving first-time buyers’ chances of securing their preferred units under the revised framework,” Chu noted.  

More Priority for First-Time Homeowners

“ECs are designed as an intermediate housing option between HDB flats and private condominiums: more aspirational than public housing, yet more accessible than fully private developments. Their relatively more accessible price point is supported by eligibility criteria, income ceilings, grants and occupation restrictions.

However, in recent years, median prices of new ECs have risen significantly, by  as much as 124% over the past decade, and first-timer participation appears to have weakened, as reflected in the declining ratio of first- to second-time applicants (Source: URA Realis as at 7^th May 2026).

Rising prices may place genuine first-timers at a disadvantage. While they may meet the income criteria, they may lack the accumulated housing equity or financial backing needed to compete effectively.

The recent policy changes, including the longer MOP, the increase in allocation reserved for first-timers (from 70% to 90%), and the removal of the DPS, could help improve accessibility to new EC projects over time, particularly as the playing field becomes more balanced in favour of first-time buyers,” added Chu.

Impact on EC Land Prices

“Developers will likely take a more measured approach in bidding for EC GLS sites after the new measures are announced. The tangible and observation impact of these measures will only be revealed in around 1.5 to 2 years, when the first ECs following these measures are launched. 

Examples of such GLS sites include the two sites to be launched for tender in the first half of this year: the Canberra Drive site and the Sembawang Drive site. Both EC sites would serve as a litmus test for developers’ response to the new set of measures.

ECs may see lower sales volumes in the medium term, at least, as first-timers become increasingly prioritised amid a smaller pool of potential buyers. Developers are expected to bear this in mind when competing for new EC sites, which could lead to lower GLS participation and more conservative bids,” Chu noted. 

For media enquiries, please contact:

Lisha Rodney

Public Relations Manager, ERA Singapore

Email: [email protected]

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