Government tightens EC rules with 10-year MOP, Deferred Payment Scheme removal and higher first-timer quota
Crowd at Rivelle Tampines executive condo which is fully sold within a month of its launch in March (Photo: Sim Lian Group)
Ask Buddy
The Ministry of National Development (MND) announced new restrictions on the executive condominium (EC) market on May 8. These include extending the minimum occupation period (MOP), removing the Deferred Payment Scheme (DPS), and increasing the allocation quota for first-time homebuyers at new EC launches.
The changes will apply to EC land parcels with tenders closing on or after May 8.
The measures mark the biggest tightening of EC rules since 2013, as the government seeks to curb windfall gains and prioritise owner-occupation amid rising EC prices and strong upgrader demand.
Supply of Flats that have reached 5-year MOP
Source: HDB, Huttons Data Analytics (data downloaded on 24 Apr 2026)
MOP extended to 10 years
The MOP for ECs has been extended to 10 years, up from five years. This means EC owners can sell their units only after a 10-year holding period, and only to Singaporeans and permanent residents (PRs) during that period.
Search for the latest New Launches, to find out the transaction prices and available units
“These measures are consistent with HDB’s policy for Plus and Prime flats, aimed at reducing the lottery effect and improving access for first-time buyers,” says Mark Yip, CEO of Huttons Asia.
The holding period before ECs are fully privatised — and open to foreigners like other 99-year leasehold private condominiums — has also been extended to 15 years, from 10 years previously.
From 2021 to 2025, among ECs transacted on the open market, about 75% were sold within five years of their MOP, up from 45% over the preceding five-year period.
An increasing number of EC owners have chalked up windfall gains of more than $1 million upon resale. Based on Huttons Data Analytics, there were 162 such transactions in 2025, with an average holding period of 9.6 years.
The largest gain exceeded $2 million, achieved from the sale of a four-bedroom unit at The Tampines Trilliant in April 2026.
According to URA, the median unit price of new ECs grew 134.8% from $782 psf in 2016 to $1,836 psf in the first four months of 2026, says Christine Sun, chief researcher and strategist at Realion Group.
This outpaced the growth in new non-landed homes, where median unit prices rose 92.2% from $1,384 psf to $2,659 psf over the same period, adds Sun. Price growth for new ECs also exceeded that of new non-landed homes across all three market segments — Rest of Central Region (RCR) at 73.7%, Outside Central Region (OCR) at 97.4%, and Core Central Region (CCR) at 38.1% — over the same period.
Appeal of upcoming EC launches
The longer MOP for EC land parcels sold after May 8, 2026, is expected to enhance the appeal of upcoming projects on awarded sites that have yet to be launched. These include EC projects at Senja Close, Woodlands Drive 17, Sembawang Road and Miltonia Close, which are likely to be launched in 2027.
The next two EC sites slated for launch are at Canberra Drive in May and Sembawang Drive in June 2026. Assuming a three-month tender period, the tenders are likely to close in August and September, respectively.
If the two sites are awarded as expected, developers are likely to launch the projects about 15 months later, or in 1H2028, estimates Huttons.
Given that the average holding period for current EC owners is close to 10 years, Yip does not expect EC projects launched after 2028 to lose their appeal.
Existing EC projects may benefit
However, Huttons expects buyers to favour existing EC projects that have just fulfilled their five-year MOP and are not subject to the new resale restrictions.
A similar trend emerged in the HDB resale market after the government introduced a 10-year MOP for Plus and Prime flats in August 2023. Buyers gravitated towards flats that had just met their five-year MOP and were free of additional resale restrictions.
“Flats in mature estates have consistently crossed the million-dollar mark,” adds Huttons' Yip. “Likewise, ECs without the new resale restrictions may see stronger price gains in the short term.”
Some buyers who were previously considering a new EC may now turn to private residential projects, which have fewer resale restrictions.
Yip notes that the seller’s stamp duty (SSD) for private residential properties applies only within the first four years of purchase, making it less restrictive than a 10-year MOP.
This could provide a modest boost to demand for new private residential launches.
Generally, ECs are priced 20% to 30% below comparable 99-year leasehold private condos in the same area. There are also restrictions in place, including a household income cap of $16,000 a month.
“Depending on the objectives of the buyers, they could still go for a new EC — notwithstanding the longer MOP — taking into account the potential capital appreciation 10 years later,” says Kelvin Fong, CEO of PropNex Realty.
“Some prospective buyers may shift their attention to other private residential options, whether new launches or resale properties, where there are no MOP restrictions.”
DPS to be removed
Based on data from the last two EC launches, more than 75% of buyers opted for the Deferred Payment Scheme (DPS). “The removal of the DPS is likely to affect some buyers of new ECs,” notes Yip.
The move may also discourage some HDB upgraders with existing home loans from purchasing a new EC, as they may not be able to service two housing loans simultaneously.
According to MND, 60% of buyers who take up the DPS are second-timers.
Generally, units purchased under the DPS are priced about 2% to 3% higher than those bought under the normal payment scheme (NPS). This may also have contributed to higher EC prices.
The HDB mortgage servicing ratio (MSR), capped at 30% of a household’s gross monthly income, applies to ECs bought directly from developers.
With the MOP now extended from five to 10 years, buyers will be subject to the MSR restriction for a longer period.
This is more restrictive than the total debt servicing ratio (TDSR), which is capped at 55% of gross monthly income.
As a result, the changes may encourage buyers to be more prudent in their purchasing decisions, says Yip.
Allocation to first-timers raised to 90%
The allocation quota for first-time homebuyers at new EC launches will be raised from 70% to 90%. The move is aimed at prioritising the housing needs of first-timers, which may be more urgent than those of second-timers.
“The measures may help reduce competition pressures faced by first-time buyers, particularly in well-located EC projects near MRT stations, schools and established amenities, where demand from second-timer upgrader households has remained resilient in recent years,” says Mohan Sandrasegeran, head of research and data analytics at SRI.
“The longer priority framework may also provide first-time households with greater flexibility and a longer runway to secure units.”
Government data showed that the proportion of EC buyers who were first-timers fell to between 30% and 40% in 2024 and 2025, from about 50% in 2020, says PropNex’s Fong.
“Various reasons could have contributed to the lower proportion, including some first-timers opting for attractive build-to-order (BTO) flats in choice locations or HDB resale units, while others may have been priced out of new ECs amid rising land and construction costs,” adds. “We think the new measures could encourage more first-timers to consider purchasing new ECs.”
Strong second-timer demand
In 1Q2026, two new EC projects totalling 1,320 units were launched: the 748-unit Coastal Cabana and the 572-unit Rivelle Tampines.
Coastal Cabana, the first EC launch in the Jalan Loyang Besar area in 12 years, sold 593 units at a median price of $1,792 psf during the quarter.
Rivelle Tampines sold 530 units, or 92.7% of its 572 units, at a median price of $1,937 psf, making it the best-selling EC launch by percentage sold in 2026.
In fact, the project was fully sold out a month later when the remaining units were snapped up by second-timers. “Demand among second-timers was very strong, with the allocated units snapped up within hours of launch,” says Yip.
The median price of ECs hit a record high of $2,052 psf at Aurelle of Tampines in 1Q2026, according to Huttons. The 760-unit project, launched in March 2025, was also 90% sold on its launch weekend. The remaining units were fully taken up after the second-timer ballot a month later.
Total EC sales in 1Q2026 reached 1,168 units.
The latest policy recalibrations also come amid a gradual narrowing in the price gap between new-launch and resale ECs, says Sandrasegeran.
Median unit prices for new ECs rose from about $1,760 psf in 1Q2025 to around $1,833 psf in 1Q2026, according to SRI data. Over the same period, median resale EC prices increased from about $1,370 psf to around $1,457 psf.
As a result, the price gap between new-launch and resale ECs has gradually narrowed in recent quarters amid resilient underlying demand.
Second-timer quota cut to 10%; second ballot delayed by two years
To give first-time homebuyers a leg up, the allocation quota for second-timers at new EC launches has been reduced from 30% to 10%.
The second ballot for unsuccessful second-timers will now take place two years after launch, instead of one month later.
“The extension of the priority period for first-timers from one month to two years could introduce greater uncertainty to EC launch take-up rates during the initial launch phase, but sales are expected to gain traction after the two-year priority period ends when the project is closer to completion,” says PropNex’s Fong.
Typically, the second-timer quota is quickly filled on launch day, while first-timer demand does not fully absorb the remaining unsold units, notes PropNex. Sales usually pick up again during the second round of balloting, one month later, when more second-timers are allowed to book units.
With the priority period stretched to two years, first-timers will also have more time to plan and deliberate before second-timers are allowed to book the remaining units, adds Fong.
Second-timers unwilling to wait two years may instead turn to another new EC launch, a private residential project, or a resale private condo or EC unit.
“If more second-timers choose to buy a new private residential home, there is a high possibility that they will sell their existing HDB flat and rent first so that they do not need to pay ABSD,” says Huttons’ Yip.
This could increase the supply of resale flats and exert downward pressure on HDB resale prices, especially as the supply of flats reaching their MOP is expected to rise from 2026 onwards.
“On the flip side, it will support the HDB rental market,” adds Yip.
Lower developer participation expected for EC sites
With the demand pool for new ECs potentially reduced, projects may take slightly longer to sell out.
“Developers are likely to factor in the new policies and bid lower for the upcoming EC tenders at Canberra Drive and Sembawang Drive,” cautions Yip. “Bid prices may be up to 10% lower than previous bids.”
This could potentially translate into more attractive prices for buyers.
If EC projects take longer to sell out, developers may become less aggressive in bidding for land, adds Yip.
In January, EC land rates hit a new high of $794 psf per plot ratio (psf ppr) for the Woodlands Drive 17 site, surpassing the previous record of $782 psf ppr set for the neighbouring EC site sold in August 2025.
The new cooling measures could potentially lead to lower participation in government land sale (GLS) tenders and more stable land bids, resulting in steadier home prices, he adds.
City Developments Ltd (CDL), the developer behind two upcoming EC projects at Woodlands Drive 17 and Senja Close, says its projects are slated for launch next year. “We recognise and support the Government’s efforts to maintain a stable and sustainable EC market, ensuring that ECs continue to help young families who are first-time buyers and HDB upgraders to achieve their homeownership aspirations," says a CDL spokesperson.
Check out the latest listings for Coastal Cabana properties
Ask Buddy
Follow Us
Property updates, 24/7.
Subscribe to Newsletter
Market insights, delivered weekly.
Top Articles
Search