Singapore is introducing major changes to the executive condominium (EC) scheme in a bid to improve affordability and give first-time home buyers a better chance of securing a unit. The Ministry of National Development (MND) announced on Friday that the minimum occupation period (MOP) for new ECs will be doubled from five years to 10 years, while the timeline for full privatisation will be extended from 10 years to 15 years.

Under the new rules, buyers of new ECs must occupy their unit for 10 years before they can rent out the entire property, purchase another residential property, or sell the unit on the open market to Singaporeans and permanent residents. Only after 15 years will the EC become fully privatised and eligible for sale to any buyer, including foreigners and corporate entities.

What's changing

1. Minimum Occupation Period (MOP) doubles to 10 years

   Owners must live in the EC for 10 years before selling, renting out the whole unit, or buying another residential property.

2. Full privatisation moves to year 15

   ECs can be sold to foreigners and corporate entities only after 15 years, instead of 10.

3. First-timer quota rises to 90%

   Developers must reserve 90% of units for first-time buyer families, up from 70%.

4. Priority period extends to two years

   The first-timer reservation window is extended from one month to two years.

5. Deferred Payment Scheme (DPS) removed

   All buyers must use the Normal Payment Scheme with progressive payments tied to construction milestones.

First-Time Buyers Get Greater Priority

Another key change is the increase in the quota reserved for first-time buyers. Currently, developers must set aside 70 per cent of EC units for first-timer families during the first month after launch. Going forward, 90 per cent of units must be reserved for first-timer families, and this priority period will be extended to two years.

After the two-year period, any remaining units can be sold to all eligible buyers, including second-timers.

"This will provide greater support for young married couples and families looking to buy their first home," MND said.

Deferred Payment Scheme Scrapped

The government is also removing the Deferred Payment Scheme (DPS), a financing option that allowed buyers to pay 20 per cent upfront and the remaining 80 per cent upon completion of the project. Buyers who used DPS typically paid a 2 to 3 per cent premium on the purchase price.

All EC buyers will now have to use the Normal Payment Scheme, under which payments are made progressively according to construction milestones.

The measures will apply to all EC Government Land Sales (GLS) sites with tender closing dates on or after May 8.

Why the Government Is Acting

Share of first-time EC buyers has fallen ~50% in 2020. That share dropped to roughly 30–40% in 2024–2025.

Speaking at the National University of Singapore IREUS Urban Housing Symposium, Minister for National Development Chee Hong Tat said the changes are intended to refocus ECs on owner-occupation rather than investment or upgrading opportunities.

He noted that first-time buyers now make up a smaller share of EC purchasers. In 2020, about half of EC buyers were first-timers. By 2024 and 2025, that proportion had fallen to between 30 and 40 per cent, as second-time buyers increasingly dominated the market.

At the same time, resale activity has accelerated. From 2021 to 2025, about 75 per cent of EC units sold on the open market were transacted within five years after meeting their MOP, compared with 45 per cent in the preceding five-year period.

"We also hope this will result in developers reducing their bids and the prices for their ECs," Mr Chee said.

Rising EC Prices Have Become a Concern

The policy review comes amid sharp price increases in the EC market.

Median new EC price (per sq ft)
S$782	S$1,843
2016	Jan–Apr 2026

A 1,000 sq ft EC at the 2026 median price would cost nearly S$1.85 million.

Recent launches have underscored the strong demand. Rivelle Tampines sold more than 92 per cent of its 572 units on launch day at an average price of S$1,893 psf, while Coastal Cabana in Pasir Ris sold about 67 per cent of its 748 units during its launch weekend at an average price of S$1,734 psf.

Existing Projects Exempt

Five upcoming EC projects will not be subject to the new rules because their land tenders closed before the policy change. They are located at Senja Close, Sembawang Road, Miltonia Close, and two sites at Woodlands Drive 17.

What This Means for EC Buyers

ECs were introduced in 1995 to offer a path into private-style housing for higher-income Singaporeans who exceed HDB income limits but may find private condominiums less affordable. ECs typically cost 20 to 30 per cent less than comparable private condos because of their ownership restrictions and eligibility criteria.

Property analysts say the new measures will primarily affect second-time buyers and investors, while improving access for first-time families.

"First-time buyers will have a good chance of applying for ECs of their choice," said JT Chia, Managing Director of PropertyForSale.

Mr Chia added that the 10-years MOP will deter speculators and help keep ECs focused on owner occupation and family needs. Second-timers will be deprived of another opportunity for EC windfall.

The bottom line for EC Cooling Measure

The changes mark one of the most significant overhauls of Singapore's EC scheme in years. By extending the occupation period, delaying full privatisation, expanding first-timer quotas, and removing deferred payment financing, the government is signalling that ECs should function primarily as homes for owner-occupiers rather than short-to-medium-term investment assets.

EC buyers are still subject to a monthly household income ceiling of S$16,000 (US$12,600) and a 30 per cent mortgage servicing ratio (MSR).