SINGAPORE: Changes to executive condominiums (EC) from Friday (May 8) are likely to cool land bids for project sites, potentially improving affordability for first-time home buyers, analysts said.
In the near-term, however, upcoming projects unaffected by the policy changes may see more demand, they added.
The changes are: the doubling of the minimum occupation period to 10 years, the removal of the Deferred Payment Scheme, and an increased quota and priority period for first-timers.
They were announced by Minister for National Development Chee Hong Tat on Friday, and are part of measures to help first-time home buyers secure an EC unit.
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The new measures will apply to all EC Government Land Sales (GLS) sites with tender closing dates on or after Friday.
Analysts said demand is expected to increase – especially among second-timers – for five upcoming EC developments not subject to the new measures.
They are the projects at Senja Close, Sembawang Road, Miltonia Close and two projects at Woodlands Drive 17. The tender for all five locations closed between August 2025 and April 2026.
Huttons Asia CEO Mark Yip said the longer minimum occupation period of future EC projects will enhance the appeal of these yet-to-launch projects.
CEO of PropNex Kelvin Fong agreed that while the five projects could see strong demand, they expect EC prices in the near-term to remain stable or see a slight upside due to their firm land prices.
Land rates for the two Woodlands Drive 17 sites, and that of Senja Close, were among the highest for EC GLS sites, he said.
EC buyers are subject to a monthly household income ceiling of S$16,000 (US$12,600) and a 30 per cent mortgage servicing ratio
“These will, to some extent, limit the magnitude of any EC price increase,” he said.
In a statement to the media, City Developments Limited said the policy updates would not affect their two upcoming EC projects at Woodlands Drive 17 and Senja Close, which are slated for launch next year.
Prices per sq ft (PSF) have more than doubled over the past decade. From January to April this year, the median price per sq ft of new ECs was S$1,843, compared with S$782 in 2016.
With the new measures, buyers of new ECs will need to fulfil the 10-year MOP before they can rent out their whole unit, purchase another residential property or sell their unit to Singaporeans and permanent residents.
ECs will be fully privatised after 15 years, up from the current 10. After the 15th year, it can be sold to any buyer.
Mr Fong said the extended MOP is key for prospective buyers who had planned to buy and resell their EC units after reaching the five-year MOP.
However, it is unlikely to deter genuine owner-occupiers who intend to live in the unit for an extensive period of time.
Mr Fong said the change aligns with the public housing framework, where Housing and Development Board (HDB) flats under the Prime and Plus models are also subject to longer MOPs.
“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,” he said.
“This may steer prospective buyers to other private resale condos and new mass-market project launches.”
Huttons’ Mr Yip noted that there has been a rising number of ECs sold in the resale market after five years, some reselling for over S$1 million above the launch price.
In 2025, there were 162 such transactions, with the average holding period at 9.6 years.
As the average holding period for current EC owners is close to 10 years, the new longer MOP is unlikely to reduce the appeal of ECs.
“This trend is similar to the HDB resale market where buyers favour newly-MOP flats with no resale restrictions,” he added.
Experts agreed that the removal of the Deferred Payment Scheme will encourage buyers to be more prudent in purchasing ECs.
The scheme allows buyers to pay 20 per cent of the purchase price upfront and the remaining 80 per cent when the project obtains its Temporary Occupation Permit.
With its removal, all EC buyers will have to use the Normal Payment Scheme, where buyers make progressive payments based on construction milestones.
Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group, said this change is likely to have the greatest impact on the market.
The DPS is a popular scheme among both first-time and second-time buyers, she said.
Over 50 per cent of current EC buyers take up the DPS, with the percentage at some projects reaching 60 to 70 per cent, she noted.
It is beneficial for HDB upgraders, as they can avoid servicing two loans simultaneously, and it helps young buyers delay payment until they are comparatively better able to service a mortgage.
“The removal of DPS may be a prudent decision, given the growing trend of affluent parents paying the down payment for their children, who may still be studying or have just started their careers when the EC was purchased,” she added.
“This practice can be deemed speculative, as the children responsible for servicing the remaining loan may not be gainfully employed or have sufficient income after the project obtains TOP.
“This risk may be magnified should the economy worsen or unemployment rates rise.”
The removal of the DPS is expected to level the playing field for first-time buyers, said CEO of ERA Singapore Marcus Chu.
“While second-time buyers could previously tap proceeds from the sale of their existing homes to fund their EC purchase, first-time buyers do not have the same financial advantage,” he said.
This raises the financial threshold required and is likely to narrow the pool of eligible second-time buyers, he added.
In his announcement, Mr Chee noted that the proportion of first-time EC buyers has decreased, relative to second-timers who have larger housing budgets from the sale proceeds of their first home.
In 2020, about half of EC buyers were first-timers. This dropped to between 30 and 40 per cent in 2024 and 2025.
Under the new changes, the quota and priority period for first-time home buyers will be increased from 70 to 90 per cent, with the priority period extended from one month to two years.
Hutton’s Mr Yip said that with the smaller allocation of 10 per cent to second-timers, demand from them is expected to be “overwhelming” when EC projects are launched for sale.
They may shift their focus to another new EC project, a new private condo launch or the resale market.
If more second-timers chose to buy a new private residential home, there is a “high possibility” that they will sell their existing HDB flat and rent so that they do not need to pay additional buyer’s stamp duty.
“This will increase the supply of resale flats for sale and exert a downward pressure on HDB resale prices, especially when the supply of MOP flats will increase from 2026,” he added.
First-timers, on the other hand, will increase their chances of securing an EC unit, especially for highly oversubscribed projects in popular locations, said PropNex’s Mr Fong.
The second-timer quota is typically filled on launch day, while first-timer demand does not fully absorb the remaining unsold EC units at the project, he said.
In the most recent EC launch at Rivelle Tampines, all second-timer slots were taken up by 2.15pm on launch day on May 21, despite an average price of S$1,893 PSF.
Under the current scheme, sales usually pick up again 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,” he said.
With the new measures, developers are likely to be more cautious with their land bids, which may improve the affordability of units, analysts said.
Developers would factor in the new policy and bid lower for the upcoming EC tenders, said Mr Yip, estimating bid prices to be up to 10 per cent lower than previous bids.
As the demand pool for new EC is potentially reduced, it may take slightly longer to sell out a new project, he said.
“If the time to sell out an EC project is longer, it may reduce the urgency of developers to bid for land. It may potentially lead to lower participation in GLS tenders and more stable land bids, which will lead to steady prices,” he said.
ERA’s Mr Chu said the tangible and observable impact of these measures will only be revealed in about 1.5 to 2 years, when the first ECs following these measures are launched.
These include the two sites to be launched for tender in the first half of this year, at Canberra Drive and Sembawang Drive.
“Both EC sites would serve as a litmus test for developers’ response to the new set of measures,” he said.
Overall, the demand for new EC units is expected to remain healthy, said PropNex’s Mr Fong.
This is due to ECs’ relative affordability, people’s strong perception of their value, a deep buyer pool and a relatively tight stock of new units.
Mr Fong added: “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.”
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In the near-term, however, upcoming projects unaffected by the policy changes may see more demand, they added.
The changes are: the doubling of the minimum occupation period to 10 years, the removal of the Deferred Payment Scheme, and an increased quota and priority period for first-timers.
They were announced by Minister for National Development Chee Hong Tat on Friday, and are part of measures to help first-time home buyers secure an EC unit.
CNA Games
Show More Show Less
The new measures will apply to all EC Government Land Sales (GLS) sites with tender closing dates on or after Friday.
Analysts said demand is expected to increase – especially among second-timers – for five upcoming EC developments not subject to the new measures.
They are the projects at Senja Close, Sembawang Road, Miltonia Close and two projects at Woodlands Drive 17. The tender for all five locations closed between August 2025 and April 2026.
Huttons Asia CEO Mark Yip said the longer minimum occupation period of future EC projects will enhance the appeal of these yet-to-launch projects.
CEO of PropNex Kelvin Fong agreed that while the five projects could see strong demand, they expect EC prices in the near-term to remain stable or see a slight upside due to their firm land prices.
Land rates for the two Woodlands Drive 17 sites, and that of Senja Close, were among the highest for EC GLS sites, he said.
EC buyers are subject to a monthly household income ceiling of S$16,000 (US$12,600) and a 30 per cent mortgage servicing ratio
“These will, to some extent, limit the magnitude of any EC price increase,” he said.
In a statement to the media, City Developments Limited said the policy updates would not affect their two upcoming EC projects at Woodlands Drive 17 and Senja Close, which are slated for launch next year.
Prices per sq ft (PSF) have more than doubled over the past decade. From January to April this year, the median price per sq ft of new ECs was S$1,843, compared with S$782 in 2016.
LONGER MOP
With the new measures, buyers of new ECs will need to fulfil the 10-year MOP before they can rent out their whole unit, purchase another residential property or sell their unit to Singaporeans and permanent residents.
ECs will be fully privatised after 15 years, up from the current 10. After the 15th year, it can be sold to any buyer.
Mr Fong said the extended MOP is key for prospective buyers who had planned to buy and resell their EC units after reaching the five-year MOP.
However, it is unlikely to deter genuine owner-occupiers who intend to live in the unit for an extensive period of time.
Mr Fong said the change aligns with the public housing framework, where Housing and Development Board (HDB) flats under the Prime and Plus models are also subject to longer MOPs.
“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,” he said.
“This may steer prospective buyers to other private resale condos and new mass-market project launches.”
Huttons’ Mr Yip noted that there has been a rising number of ECs sold in the resale market after five years, some reselling for over S$1 million above the launch price.
In 2025, there were 162 such transactions, with the average holding period at 9.6 years.
As the average holding period for current EC owners is close to 10 years, the new longer MOP is unlikely to reduce the appeal of ECs.
“This trend is similar to the HDB resale market where buyers favour newly-MOP flats with no resale restrictions,” he added.
NO MORE DEFERRED PAYMENTS
Experts agreed that the removal of the Deferred Payment Scheme will encourage buyers to be more prudent in purchasing ECs.
The scheme allows buyers to pay 20 per cent of the purchase price upfront and the remaining 80 per cent when the project obtains its Temporary Occupation Permit.
With its removal, all EC buyers will have to use the Normal Payment Scheme, where buyers make progressive payments based on construction milestones.
Related:
Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group, said this change is likely to have the greatest impact on the market.
The DPS is a popular scheme among both first-time and second-time buyers, she said.
Over 50 per cent of current EC buyers take up the DPS, with the percentage at some projects reaching 60 to 70 per cent, she noted.
It is beneficial for HDB upgraders, as they can avoid servicing two loans simultaneously, and it helps young buyers delay payment until they are comparatively better able to service a mortgage.
“The removal of DPS may be a prudent decision, given the growing trend of affluent parents paying the down payment for their children, who may still be studying or have just started their careers when the EC was purchased,” she added.
“This practice can be deemed speculative, as the children responsible for servicing the remaining loan may not be gainfully employed or have sufficient income after the project obtains TOP.
“This risk may be magnified should the economy worsen or unemployment rates rise.”
The removal of the DPS is expected to level the playing field for first-time buyers, said CEO of ERA Singapore Marcus Chu.
“While second-time buyers could previously tap proceeds from the sale of their existing homes to fund their EC purchase, first-time buyers do not have the same financial advantage,” he said.
This raises the financial threshold required and is likely to narrow the pool of eligible second-time buyers, he added.
In his announcement, Mr Chee noted that the proportion of first-time EC buyers has decreased, relative to second-timers who have larger housing budgets from the sale proceeds of their first home.
In 2020, about half of EC buyers were first-timers. This dropped to between 30 and 40 per cent in 2024 and 2025.
Related:
MORE UNITS FOR FIRST-TIMERS
Under the new changes, the quota and priority period for first-time home buyers will be increased from 70 to 90 per cent, with the priority period extended from one month to two years.
Hutton’s Mr Yip said that with the smaller allocation of 10 per cent to second-timers, demand from them is expected to be “overwhelming” when EC projects are launched for sale.
They may shift their focus to another new EC project, a new private condo launch or the resale market.
If more second-timers chose to buy a new private residential home, there is a “high possibility” that they will sell their existing HDB flat and rent so that they do not need to pay additional buyer’s stamp duty.
“This will increase the supply of resale flats for sale and exert a downward pressure on HDB resale prices, especially when the supply of MOP flats will increase from 2026,” he added.
First-timers, on the other hand, will increase their chances of securing an EC unit, especially for highly oversubscribed projects in popular locations, said PropNex’s Mr Fong.
The second-timer quota is typically filled on launch day, while first-timer demand does not fully absorb the remaining unsold EC units at the project, he said.
In the most recent EC launch at Rivelle Tampines, all second-timer slots were taken up by 2.15pm on launch day on May 21, despite an average price of S$1,893 PSF.
Under the current scheme, sales usually pick up again 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,” he said.
CAUTIOUS LAND BIDS
With the new measures, developers are likely to be more cautious with their land bids, which may improve the affordability of units, analysts said.
Developers would factor in the new policy and bid lower for the upcoming EC tenders, said Mr Yip, estimating bid prices to be up to 10 per cent lower than previous bids.
As the demand pool for new EC is potentially reduced, it may take slightly longer to sell out a new project, he said.
“If the time to sell out an EC project is longer, it may reduce the urgency of developers to bid for land. It may potentially lead to lower participation in GLS tenders and more stable land bids, which will lead to steady prices,” he said.
ERA’s Mr Chu said the tangible and observable impact of these measures will only be revealed in about 1.5 to 2 years, when the first ECs following these measures are launched.
These include the two sites to be launched for tender in the first half of this year, at Canberra Drive and Sembawang Drive.
“Both EC sites would serve as a litmus test for developers’ response to the new set of measures,” he said.
Overall, the demand for new EC units is expected to remain healthy, said PropNex’s Mr Fong.
This is due to ECs’ relative affordability, people’s strong perception of their value, a deep buyer pool and a relatively tight stock of new units.
Mr Fong added: “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.”
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