The government has today announced three new measures aimed at strengthening the Executive Condominium (EC) Housing Scheme and supporting first-time homebuyers. These measures are: a) extension of the minimum occupation period (MOP) for new ECs to 10 years with full privatisation after 15 years; b) removal of the Deferred Payment Scheme (DPS); and c) raise the first-timer quota to 90% and lengthen the priority period for first-timer to purchase new EC units to 2 years. These changes will take effect on government land sales (GLS) EC sites with tender closing date on or after 8 May 2026.

This is the latest refinement to the EC Housing Scheme since it was launched in 1995 to provide an affordable option for higher-income Singaporeans who aspire to own private housing (see Annex for previous key EC measures). EC projects offer similar design features and facilities as private condominiums, and their relative affordability to other new private condos make EC units a sought-after housing type among Singaporean households, including first-time homebuyers and HDB upgraders.

Various measures are in place to keep EC units affordable, including buyer eligibility conditions such as citizenship, age, and monthly household income ceiling (presently at $16,000) to purchase EC units directly from developers. There are also restrictions such as a minimum occupation period which is among the changes announced today.

Commenting on the latest announcement, Mr Kelvin Fong, CEO of PropNex, said:

In our view, the latest package of EC measures is timely for a market segment that has seen relatively few changes over the decades, even as housing needs and lifestyle preferences evolve, and income levels rise. The changes announced tipped in favour of first-time buyers and will help to reinforce the intent of the EC Housing Scheme and ensure that it continues to meet the needs and aspirations of homebuyers.

Data from the government indicated that the proportion of EC buyers who were first-timers fell to between 30% and 40% in 2024 and 2025, from about 50% in 2020. Various reasons could have led to the lower proportion, including some first-timers perhaps opting for attractive build-to-order (BTO) flats in choice locations or HDB resale units, while some buyers could have been priced out of buying new ECs due to rising prices as land prices and construction costs rose. We think the new measures could help to encourage more first-timers to consider purchasing new ECs.

The new measures are well-calibrated, touching on home financing, priority access to first-timers, and a focus on homeownership with the longer MOP. Collectively, these measures could potentially alter the demand dynamics for new EC projects especially during the initial launch period which in turn, could have a bearing on housing developers' EC land bid strategies and risks assessment going forward. Meanwhile, we expect the five upcoming EC projects in Senja Close, Woodlands Drive 17, Sembawang Road, and Miltonia Close - which can offer an estimated 1,970 units in total - will see strong buying demand as they represent the last five EC projects that will not be affected by the new EC measures.

The significance and potential impact of each measure are elaborated below.

1. Extension of the EC MOP from 5 to 10 years; full privatisation after 15 years instead of 10 years

   Prior to today's announcement, ECs were subjected to an MOP of 5 years from the issuance of the Temporary Occupation Permit (TOP), during which EC units cannot be resold or fully rented out. Thereafter, during the next five years, EC units can only be sold to Singapore citizens or Singapore Permanent Residents. From the eleventh year onwards, EC units can be sold as regular private housing. With the latest change, the MOP will be extended to 10 years while full privatisation will take place from the sixteenth year onwards.

   We believe that the increase in MOP to 10 years could lend more stability to the EC market and strengthen the owner-occupier profile of EC buyers. In addition, this also aligns with the public housing framework where HDB Prime and Plus flats are also subjected to a longer MOP of 10 years. Given that ECs offer a subsidised pathway to private housing, the extension of the MOP will help to promote fairness and support a homeownership mindset over an investment one.

   The longer MOP is unlikely to deter genuine owner-occupiers who intend to live in the unit for an extensive period of time from purchasing new ECs. However, this latest change is a material one for prospective buyers who had planned to buy, and then re-sell after reaching the 5-year MOP - as the new measure essentially doubles the exit timeline. Depending on the objectives of the buyers, they could still go for a new EC - notwithstanding the longer MOP - taking into account the potential capital appreciation 10 years later. Some prospective buyers may shift their attention to other private residential options (new launches or resale) where there are no MOP restrictions.

   We do not expect any immediate impact to the private residential resale market, but the effects of the 10-year MOP on new ECs may be felt further down the road with a reduced flow of "younger resale ECs" into the market. This may steer prospective buyers to other private resale condos and new mass-market project launches.

2. The removal of the Deferred Payment Scheme (DPS) for new EC purchase could likely moderate initial take-up rates given the high adoption of DPS among buyers - could be 60% to 70% or more for some projects - as opposed to the Normal Payment Scheme (NPS). This may also lead to more pricing transparency and slight downward pressure on headline EC prices since units sold under DPS usually see a small price premium of 2% to 3%. The removal of DPS aligns EC financing with that of other private homes, and will help to instill greater financial prudence among EC buyers.

   Under DPS, buyers have greater short-term cashflow flexibility as they are able to defer loan servicing till the EC project is completed. Meanwhile, under the NPS, buyers make loan repayments progressively as construction milestones are met, meaning that loan instalments start earlier compared with DPS, and the loan repayment amount will rise over time as the EC project is being built.

   We believe the scrapping of the DPS may potentially slow EC sales temporarily as prospective buyers take time to do their sums. It will likely have the greatest impact on buyers who rely on the scheme to manage upfront affordability. Without DPS, prospective buyers will have to be more prudent in their purchase, and some may perhaps opt for smaller units to keep within their housing budgets. It is possible that some households may defer their EC purchase or consider other housing options that more comfortably fit their budget. However, in view of favourable interest rates, some buyers could be encouraged to take up the NPS, while many upgrader households may still be able to adapt as they have built up savings, and can unlock capital gains from their flat when it is resold.

3. Raise the EC quota allocated to second-timer buyers to 90%, and extend the priority period for first-time buyers to 2 years

   Previously, 70% of the units at EC projects are set aside for first-time buyers, with 30% allocated to second-timers at the EC project launch. One month later, the sales booking will be opened to more second-timers to purchase the remaining unsold units at the EC project. Going forward, 90% of the EC units will be set aside for first-time buyers, and the priority period will be lengthened substantially from one month to two years.

   This will enhance access for first-timer buyers and increase their chances of securing EC units during the project launch, especially for highly oversubscribed ECs in popular locations. Having a larger pool of units set aside for first-timers at launch could also ease competition from second-timers who have more financial resources, such as the proceeds from the sale of their flat.

   In our view, the extension of the priority period for first-timers from one month to two years could introduce greater uncertainty to EC launch take-up rates at the initial launch period, but sales are expected to gain traction after the 2-year priority period ends when the EC project is close to being completed. Typically, the second-timer EC quota is quickly filled on launch day, while first-timer demand does not fully absorb the remaining unsold EC units at the project. Sales usually pick up again during the second round of balloting one month later when more second-timers are able to book units. With the priority period stretched to two years, it will also give first-timers more time to plan and deliberate on buying decisions, before more second-timers enter to book units.

Taken together, we expect the new measures could have some upstream impact on EC land bids. Developers will likely be more cautious in their bids, given the uncertainty as to how the market may react to the changes, the potential impact on initial take-up rates, and considerations on the purchasing power of first-time homebuyers who will form the vast majority of EC buyers at least in the first two years of the project launch.

Alongside these measures, we hope the government will continue to put out an adequate slate of EC sites on its twice-yearly government land sales programmes to ensure that supply keeps pace with the healthy underlying demand for EC units.

Overall, the demand for new EC units is expected to remain healthy for several reasons: 1) ECs' relative affordability compared with other private homes; 2) strong perception of value and future upside offered by EC units; 3) deep buyer pool including HDB upgrader demand, which to some extent replenishes itself each year with a fresh cohort of HDB flats exiting their 5-year MOP; and 4) relatively tight stock of new EC units.

ANNEX: Overview of key EC measures