Singapore doubles executive condominium minimum occupation period to 10 years and scraps payment deferral

Singapore has announced its most significant overhaul of the executive condominium (EC) scheme in more than a decade, doubling the minimum occupation period (MOP), raising the proportion of units reserved for first-time buyers, and abolishing a popular deferred payment option that officials say has driven up costs.

The changes were announced by Minister for National Development Chee Hong Tat on 8 May 2026 at a symposium on urban housing organised by the National University of Singapore (NUS) Institute of Real Estate and Urban Studies (IREUS), held at Conrad Singapore Orchard.

The measures apply to all EC Government Land Sales (GLS) sites with tender closing dates on or after 8 May 2026. They do not apply to tenders already released prior to that date.

MOP extended to 10 years, privatisation deferred to 15

Under the new rules, buyers of new ECs must fulfil a 10-year MOP before they can rent out their whole unit, purchase another residential property, or sell to Singaporeans and permanent residents. The current MOP is five years.

Full privatisation — the point at which EC owners can sell to any buyer, including foreigners and corporate entities — will now occur after 15 years, extended from the current 10 years.

According to The Straits Times, resale buyers of these ECs will not be subject to an MOP.

Chee Hong Tat said the change was warranted by data showing a sharp rise in early-exit sales. Between 2021 and 2025, approximately 75 per cent of ECs transacted on the open market changed hands within five years of reaching their MOP, up from 45 per cent in the preceding five-year period.

First-timer quota raised and priority window extended

The proportion of units reserved for first-time buyers at launch will be raised from 70 per cent to 90 per cent.

Under the current framework, developers are required to hold those units for first-timers during the first month after a project's launch. Any remaining units can thereafter be offered to all eligible buyers, including second-timers.

The new measures extend that priority window from one month to two years. After that period, developers may sell remaining units to all eligible buyers.

Chee Hong Tat said the share of first-time EC buyers had declined markedly in recent years. In 2020, approximately half of all EC purchasers were first-timers. By 2024 and 2025, that share had dropped to between 30 and 40 per cent.

He attributed the shift in part to second-time buyers, who typically hold larger budgets from the sale proceeds of their first homes, outcompeting first-timers in a rising market.

The Ministry of National Development (MND) said the changes would provide greater support for young married couples and families looking to buy their first home.

Chee Hong Tat also said the measures were intended to put downward pressure on developer land bids. In his speech, he explained that under the revised framework, developers can sell only the 90 per cent first-timer allocation during a window running from the 15th to the 39th month from the date of site award, before the developer additional buyer's stamp duty (ABSD) clawback activates at the five-year mark, extendable to six years where eligible.

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

Deferred payment scheme abolished

MND also announced that developers will no longer be permitted to offer a Deferred Payment Scheme (DPS) for uncompleted EC units. Under the DPS, buyers paid 20 per cent of the purchase price upfront, deferring the remaining 80 per cent until the project obtained its Temporary Occupation Permit (TOP).

Buyers who opted for the DPS typically paid a 2 to 3 per cent premium over the purchase price. MND said scrapping the scheme would encourage financial prudence and align EC payment arrangements with those for other uncompleted private residential properties.

All EC buyers will now be required to use the Normal Payment Scheme, under which buyers make progressive payments tied to construction milestones following an initial down payment.

Mark Yip, chief executive of real estate agency Huttons Asia, said the removal of the DPS could dampen demand from Housing and Development Board (HDB) upgraders still servicing an existing home loan, as their EC loan repayments would commence concurrently with their outstanding flat loan.

Yip noted that in the last two EC launches — Rivelle Tampines and Coastal Cabana in Pasir Ris — more than 75 per cent of buyers had opted for the DPS.

Prices have more than doubled in a decade

The policy changes follow a review that Chee Hong Tat announced during the Committee of Supply (COS) debates in March 2026, after sustained concern over EC affordability.

According to data from PropNex Research and the Urban Redevelopment Authority (URA), the median price per square foot of new ECs from January to April 2026 was S$1,843, equivalent to approximately US$1,455. The equivalent figure in 2016 was S$782 psf, representing a rise of more than 135 per cent over a decade.

At the median price of S$1,843 psf, a new EC unit of 1,000 square feet — comparable to an average four-room HDB flat — would cost close to S$1.85 million.

The most recent EC launch, Rivelle Tampines, a 572-unit development in Tampines Street 95, sold more than 92 per cent of its units on its launch day on 21 March 2026 at an average price of S$1,893 psf. Developer Sim Lian Group said the 30 per cent quota allocated for second-timers was fully taken up by 2.15pm that day.

In January, Coastal Cabana in Pasir Ris sold approximately 67 per cent of its 748 units during its launch weekend at an average price of S$1,734 psf.

In comparison, median overall HDB resale flat prices grew 51 per cent between 2015 and 2025, rising from S$400 psf to S$604 psf.

Projects exempt from new measures

According to reports by Channel NewsAsia and The Straits Times, five upcoming EC projects will not be subject to the new rules, as tenders for those sites closed before 8 May 2026. They are located at Senja Close, Sembawang Road, Miltonia Close, and two sites at Woodlands Drive 17.

The Straits Times reported that the first two sites to fall under the new framework are in Canberra Drive and Sembawang Drive. The Canberra site will be launched for sale to developers in May and the Sembawang site in June.

PropNex chief executive Kelvin Fong said demand for those five projects could be strong, given that they would continue to operate under existing rules.

Background: what executive condominiums are

ECs were introduced in 1995 to bridge the gap between public and private housing. They are developed and sold by private developers, with designs and facilities comparable to private condominiums, but priced approximately 20 to 30 per cent lower due to initial eligibility and ownership restrictions, including an income ceiling and the MOP.

Eligible buyers may apply for a CPF Housing Grant of up to S$30,000. The household income ceiling for EC purchases is S$16,000 per month. The equivalent ceiling for HDB Build-to-Order (BTO) flat applications is S$14,000.

In September 2019, the EC income ceiling was raised from S$14,000 to S$16,000. In 2013, the government introduced three earlier measures for EC developments, including reducing cancellation fees, requiring second-time applicants to pay a resale levy, and revising mortgage loan terms.