SINGAPORE: In a bid to help first-time homebuyers deal with higher prices, the Ministry of National Development (MND) announced several changes to the executive condominium (EC) scheme on May 8.
The changes include doubling the minimum occupation period (MOP) for new ECs, currently at five years, to 10 years. This means that those who purchase new ECs are required to live in these units for at least 10 years before they are allowed to sell them to other Singaporeans or to permanent residents. The 10-year MOP must pass before new EC buyers are allowed to purchase another residential property or rent out the EC as a whole unit.
Additionally, ECs will only be fully privatised after 15 years, instead of 10 years, which means that EC owners may only sell their units to buyers, including foreigners and companies, after 15 years.
Minister for National Development Chee Hong Tat said this during his keynote speech at the National University of Singapore IREUS Urban Housing Symposium. Importantly, he also announced an increase in the quota and priority period for first-time home buyers.
At present, developers are required to reserve 70% of ECs for first-time homebuyers in the first month after a project is launched. Mr Chee said that this quota is being raised to 90%, with the priority period also extended to two years, which provides more support for young married couples and families intending to purchase their first home.
This means that developers may only sell the remainder of the units to interested parties, including second-time buyers, after two years.
Thirdly, Mr Chee announced the removal of the Deferred Payment Scheme (DPS) for ECs. This allowed buyers to pay 20% upfront for the unit, with the balance of 80% to be paid after the project’s Temporary Occupation Permit was issued, which meant that buyers paid a premium of 2 to 3% above the price of the EC.
EC home buyers must now follow the Normal Payment Scheme, which encourages “financial prudence and aligns with the arrangements for other uncompleted private residential properties,” the Minister added.
The government hopes these measures, which have been made to “further support first-time home buyers,” will cause EC prices to be lowered, he added.
“We also hope this will result in developers reducing their land bids and the prices for their ECs,” the minister said, adding in a social media post that “These changes will apply to all EC Government Land Sale sites with tender closing dates on or after today (8 May 2026).” /TISG
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