By Lynette Tan
If you’ve only got a minute:
- To curb rising prices of executive condominiums (ECs), new cooling measures implemented included the doubling of minimum occupation period (MOP) to 10 years and removal of Deferred Payment Scheme (DPS) for buyers.
- Demand could be redirected to BTOs or the private market, though affordability constraints are likely to steer buyers to private resale over new launches.
To rein in rising prices of executive condominiums (ECs), new cooling measures were implemented in May 2026. They included the doubling of minimum occupation period (MOP) to 10 years before property owners are permitted to sell their units. The full privatisation of ECs is also extended to 15 years from 10.
Furthermore, the deferred payment scheme (DPS) for new ECs is abolished. This means buyers will be required to follow the conventional progressive payment schedule, which requires a greater upfront downpayment during the construction phase.
The proportion of units allocated for first-time purchasers will also be increased from to 90% from 70%, and the priority period for these buyers will be extended to 2 years from 1 month. These updated directives are applicable to all new tenders submitted on or after 8 May, 2026.
Impact of new policy changes
Taken together, these adjustments signify a clear strategic objective to prioritise long-term owner-occupancy. ECs were initially designed to cater to the "sandwich class" – households whose earnings surpassed the eligibility criteria for Build-To-Order (BTO) flats but found private housing financially challenging. However, the most recent modifications appear to be strategically implemented to reinforce the owner-occupancy aspect of ECs and curb speculative buying interest.
The removal of the DPS also means potential buyers must carefully manage the timeline of selling their existing HDB flat and financing 2 mortgages at the same time.
Overview of the New EC rule changes
| Policy area | Previous policies | Updated policies |
|---|---|---|
Minimum occupation period (MOP) | 5 years before owners can:
| 10 years before owners can:
|
Full privatisation | Fully privatised after 10 years | Extended to 15 years |
Deferred payment Scheme (DPS) | Available for eligible EC launches:
| DPS to be removed; buyers to make progressive payments as construction hits certain milestones |
First-timer quota | 70% quota during launch period | Increased to 90% |
Priority period for first-timers | 1 month before open booking | Extended to 2 years |
Of the changes, DBS Group Research views the elimination of the DPS as the most significant policy change. Given the banks' 4.5% mortgage stress test, households reaching the S$16,000 monthly income cap are generally limited to borrowing approximately S$930,000. This makes upfront affordability a more stringent factor under the conventional progressive payment structure.
For instance, the recent launch of Rivelle Tampines EC in March, saw prices nearing S$1,900 per square foot (psf). For a 883 sq ft 3-bedder, this unit would cost around $1.67 million. The minimum 5% cash downpayment amounts to around $83,500 and an additional $655,000 downpayment in either cash or a combination of cash and CPF. In total, the upfront payment comes up to an estimated $739,000 (barring any housing grants).
Under the previous DPS, buyers only pay 20% of the purchase price upfront, while the remaining 80% is paid when the EC receives its Temporary Occupation Permit (TOP) and when you collect the keys.
As such, a considerable number of prospective buyers may now be priced out of the EC market due to substantially elevated upfront downpayment, potentially shifting their interest towards Build-To-Order (BTO) flats or the private housing sector. While some individuals might explore new private developments, their financial capacity and the overall purchase value are expected to remain prohibitive constraints, leading to more cautious purchasing decisions and an increased inclination towards private resale properties.
Why buy an EC?
Despite these changes, ECs may still remain attractive to households who are HDB upgraders or families who have exceeded the salary limit for buying BTOs.
Compared to private condo prices, ECs still offer a cost-effective approach for those who aspire towards having private amenities and private property ownership. A general improvement in quality and amenities over the years, often rivalling those of private condominiums is observed. This means EC buyers get to enjoy the perks of living in a private property at a subsidised pricing, given that they fulfil all the eligibility conditions.
First-time EC buyers may also be eligible for CPF housing grants. Furthermore, buyers will be able to sell in the open market to a broader audience, including foreigners, post-MOP, leading to perks such as an expanded buyer pool, improved financial prospects, and potential gains from a more diverse market.
The downside is that owners will need to adhere to the new 10-year MOP to either rent out or sell their unit.
There are also restrictions on selling the unit to only eligible buyers before the 15-year period.
The other disadvantage is that ECs are usually situated in non-matured estates to keep costs low and amenities nearby might take time to develop.
With the recent changes, DBS Group Research thinks that potential “buyers could be pushed out of the EC market as the upfront downpayment requirements become significantly higher, potentially redirecting demand towards BTOs or the private market.”
Read the full report here.
