Extending Housing Access to the Middle-Income: Policy Changes for Executive Condominiums

Updated: 2 hours ago

In this Explainer, find out...

What recent policy changes have been introduced to Singapore’s Executive Condominium (EC) scheme?
What concerns do the updated EC reforms seek to address?
What are the potential drawbacks of these EC reforms for first-time buyers, upgraders, and Singapore’s broader property market?

Introduction

Neither fully private property nor traditional public housing, Executive Condominiums (ECs) aim to strike a balance between affordability and luxury. Developed by private firms, these hybrid private-public condominiums offer amenities like security, pools and gyms. Meanwhile, their buyers continue to enjoy housing subsidies from the Government.However, recent unprecedented price surges have made these condominiums less accessible.

Thus, in order to make ECs more affordable for first-time buyers, the Government introduced a few policy changes, positioning ECs more so as a social good than a vehicle for profit. Read on to find out more about how these policy changes address previous problems, and how this may reshape Singapore’s property market in the future.

Singapore's Housing Landscape

To understand why these EC policy changes matter, it is helpful to first look at Singapore’s broader housing system. In Singapore, housing is treated as not just a private market good, but a key part of social policy. Housing policy is characterised by active state intervention to balance affordability, access, and stability. Homeownership is seen as instrumental to nation-building, and 80 per cent of residents in Singapore live in public housing managed by the Housing and Development Board (HDB). This means that when housing prices rise sharply, the issue is not merely an economic one, but also a social one.

In recent years, affordability pressures have intensified across the housing market, driven by strong demand and limited land supply. In 2021, private property prices rose 10.6 per cent, prompting the Government to introduce new “cooling measures” in December that year. For example, the Additional Buyer’s Stamp Duty (ABSD), an extra tax on certain property purchases, was raised to moderate demand and lower prices. Nonetheless, property prices are generally still on an upward trend, which have made private housing increasingly unaffordable for many individuals. Thus, some buyers are likely to turn to ECs as a cheaper alternative.

The EC Housing Scheme

ECs were introduced in 1995 with similar amenities to private condominiums, designed for the “sandwich class”. This refers to those who earn too much to qualify for HDB built-to-order flats but find private condominiums unaffordable.

Affordability Measures

The Government supports the relative affordability of ECs through buyer restrictions and housing grants. For newly launched ECs, buyers must meet certain eligibility conditions, including:

At least one applicant must be a Singapore Citizen;

Eligible household structure (e.g., fiancé and fiancée, or a group of two to four singles);

Total monthly income of all applicants does not exceed S$16,000; and

All applicants must not own private property locally or overseas, and must not have sold or transferred one in the past 30 months.

These rules limit the range of eligible buyers, resulting in less demand compared to private condominiums. Anticipating lower sale prices, EC developers are less likely to bid aggressively for the land, keeping costs relatively low. As such, new ECs are priced at about 20 to 30 per cent lower than comparable private condominiums. In addition, eligible first-time buyers can also benefit from a Central Provident Fund Housing Grant of up to S$30,000. This makes ECs a more accessible pathway to condominium living, keeping them within reach of the sandwich class they were designed to serve.

Price Pressures

However, EC prices have continued to rise because there is strong demand yet limited land for development. As a small city with a total land area of only 730 km², Singapore has to distribute scarce land across many competing needs such as housing, transport, industry and green spaces. Therefore, land supply is tightly controlled by the Government, via the Government Land Sales (GLS) programme. This means that the number of new EC launches is limited, even when supply increases. In 2025, the Government made land available for about 2,000 new EC units, which was the highest yearly supply since 2014. Even so, demand outstripped supply, with the “Aurelle of Tampines” EC experiencing a rapid sell-out. This explains the upward pressure on prices.

Furthermore, the long-term appeal of ECs contributes significantly to demand. After the 10-year privatisation period, EC homeowners can sell their unit to any buyer, including foreigners. The large buyer pool in the resale market therefore makes ECs attractive not just as homes, but also as appreciating assets (i.e., investments that grow in market value over time).

As a result, it is not surprising that EC prices per area have more than doubled over the past decade. From January 2026 to April 2026, the median price per square foot of new ECs was S$1,843, compared with S$782 in 2016. At this current price, a new EC unit of 1,000 square feet (the size of an average four-room HDB flat) would cost nearly S$1.85 million. This is roughly three times the median resale price of an equivalent HDB flat (around S$600,000 in 2026).

New Changes to the EC Scheme

Recognising the price pressures in the EC market, the Government moved to curb property speculation and keep ECs affordable for genuine first-time homebuyers. On 8 May 2026, Minister for National Development Chee Hong Tat announced three new measures to support first-time homebuyers in the EC market, including:

Extending the minimum occupation period;

Strengthening protective measures for first-time buyers; and

Removing the deferral payment scheme for ECs.

These changes apply to all EC GLS sites with tender closing dates on or after 8 May 2026. Therefore, they exclude the following projects: Coastal Cabana, Senja Close, Woodlands Drive 17, Sembawang Road, Woodlands Avenue 12, and Miltonia Close.

Let us now consider each of the three key changes in turn.

Extended Minimum Occupation Period

First, the Minimum Occupation Period (MOP) for new ECs has been extended from five to 10 years. Meanwhile, the EC will only be fully privatised after 15 years, as opposed to the current 10 years. The longer MOP means that a buyer must now physically live in the EC for the first 10 years. EC owners can only sell or rent out their units to Singapore Citizens and Permanent Residents after the MOP lapses. After 15 years, the EC is then fully privatised, which means that all HDB restrictions are dropped and the unit can be sold or rented to anyone, including foreigners. Since privatisation causes the units to be available to a larger market of buyers, prices tend to rise due to the increased demand. Extending the timeline keeps ECs affordable for a longer time.

These changes align ECs with the public housing framework, where HDB Prime and Plus flats are also subject to a longer 10-year MOP, compared to Standard flats which have a five-year MOP.

Stronger Protective Measures for First-timers

Second, new EC developments must also reserve 90 per cent of units for first-time buyers, up from the current 70 per cent.

Previously, the reservation period was for a month. Moving forward, this priority window will be extended to two years. During this two-year period, developers can only sell ECs to first-time buyers. After this two-year period, developers can sell any remaining units to all eligible buyers, which include second-timers.

Removal of Deferred Payment Scheme for ECs

Third, the Deferred Payment Scheme (DPS) has also been removed as an option for EC buyers. Under the old EC policy with DPS, buyers could choose to pay only 20 per cent of the purchase price upfront (i.e., as a downpayment). The remaining 80 per cent could be paid later, when the development is almost completed. This normally only happens three to five years after the 20 percent downpayment, when the building is safe to live in and receives a Temporary Occupation Permit.

Now, however, all EC buyers must pay under the Normal Payment Scheme. This means that after the initial 20 per cent downpayment, buyers must make progressive payments at each construction milestone (e.g., completion of the building foundation). This typically works out to a sum of five to 10 per cent of the purchase price every six months.

Advantages of the New EC Scheme

The new EC scheme brings with it several benefits, not least to first-time homebuyers.

Reducing Short-term Speculation

The longer MOP helps reduce speculation by making ECs less attractive to people looking to profit from the resale. In the past, EC units typically doubled in price after the five-year MOP. This resulted in the practice of “flipping”, where speculators buy ECs for the purpose of selling it immediately once the MOP expires. In fact, between 2021 to 2025, 75 per cent of ECs were sold within 5 years of the expiry of the MOP. This represents an increase from the 45 percent observed between 2015 and 2020. By lengthening the MOP to 10 years, the Government reduces the ability to reap short-term profits and encourages buyers to adopt a homeownership mindset over an investment one.

Ensuring Accessibility for First-timers

The new EC rules may help keep ECs more affordable for first-timers. First-time buyers made up about 50 per cent of EC purchases in 2020, but only about 30 percent in 2024, suggesting that they were being crowded out. Increasing the first-timer quota and priority period directly addresses this issue by reserving more units for first-timers, for a longer period of time.

The policy changes may also help moderate EC prices by influencing developer bids for land. With 90 per cent of quotas reserved for first-time buyers, EC projects could take two to three years to sell out. First-time buyers would likely take longer to absorb the higher supply reserved for them, since they typically have smaller housing budgets relative to second-timers, who have funds from selling their first home. This matters because developers are under time pressure to sell off units: they are subject to an Additional Buyer’s Stamp Duty tax of 40 per cent of the land price, but 35 per cent is waived if they sell all units within five years of buying the land.

Therefore, given the slower sell-out pace among first-timers, fewer developers may participate in GLS tenders, and those who do are likely to bid lower, which could result in lower prices for buyers. In fact, estimates suggest prices of future affected EC projects falling by around five to seven per cent from current median launch prices, assuming no major policy changes. Thus, the new scheme keeps ECs more affordable for first-timers.

Promoting Financial Prudence

Furthermore, the removal of the DPS promotes financial prudence among buyers. The DPS previously enabled affluent parents to pay the downpayment for children who were still studying or had just started their careers, This left their children responsible for servicing the remaining 80 percent of the loan without necessarily having stable income when it is due. With the Normal Payment Scheme now mandatory, buyers will need to manage their loans and finances upfront. Thus, they are less likely to overcommit financially.

Drawbacks of the New EC Scheme

While the changes to the EC policies aim to improve affordability and cool the market, several pertinent trade-offs cannot be overlooked.

Fewer Choices for HDB Upgraders

To start, the removal of the DPS and the increased quota for first-time buyers mean that there would be fewer rooms reserved for EC buyers who wish to upgrade from HDBs. Historically, HDB upgraders could purchase an EC flat with much less upfront cash. The removal of the DPS puts ECs temporarily out of reach for some HDB upgraders, especially those who are still paying off the loans for their first home.

Furthermore, even if one has sufficient funds, the increased quota for first-time buyers and the duration of the priority period mean that HDB upgraders are only able to purchase EC flats after two years. Even then, these HDB upgraders are considered second-timers who would now face the problem of picking out units from a reduced pool, potentially leaving a gap in their housing options.

Impacts on Other Housing Markets

Inevitably, this new problem of fewer housing options for HDB upgraders creates further trickle-down effects into other housing markets. With a lack of options in the EC market, HDB upgraders are forced to look at either more affordable substitutes like HDB resale flats, or pricier options like private resale condominiums or resale ECs. With increased demand within these markets, prices within resale markets may ultimately increase in the long-term, making other forms of housing more expensive. If not managed well, this problem may spread to affect not just EC buyers, but even those who wish to purchase resale flats. The Government has pre-emptively planned to increase the supply of HDB flats ending their MOP in 2026. This could increase the supply of HDB resale flats in the market from 2026, providing a more affordable substitute to ECs while also reducing the likelihood of future price surges within the resale market.

A Broader View: Policymaking and the Housing Narrative

One may start to realise the pattern: policymakers face inherent trade-offs in instituting new policies. Although making ECs more affordable helps middle-income first-time buyers, housing options may become more expensive for upgraders and other prospective homeowners. However, these trade-offs should not be analysed with respect to the EC policy changes alone. Policymakers do not operate in a vacuum; instead, these changes exist within a broader housing strategy where different policies work together to manage housing accessibility.

The most significant takeaway is the Government’s shift in its housing narrative. From a broader perspective, we can see that the Government is nudging Singaporeans to adopt a longer-term ownership perspective to housing. For instance, since 2024, the Government has tried to address potential housing affordability and fairness concerns by re-working its BTO classification system. Collectively, these policies aim to encourage the public to view flats as a home rather than an investment vehicle.

Conclusion

Moving forward, the future of the EC housing scheme has been adapted to fit recent circumstances and trends. Its various changes, including the removal of DPS and extension of the MOP, have the potential to level the playing field for first-time buyers. Coupled with the effort from developers to exercise cautious land-bidding practices, the affordability of EC units may be expected to improve.

While the tangible and observable impact of these measures may only be revealed in about two years (when the first ECs to be affected by these measures are launched), officials and analysts appear optimistic about the future of the EC housing market. Should these measures prove successful, they would work to maintain healthy demand and supply in the EC market, ensuring that these flats remain a feasible housing option for first-time buyers.

This Policy Explainer was written by members of MAJU. MAJU is a ground-up, fully youth-led organisation dedicated to empowering Singaporean youths in policy discourse and co-creation.

By promoting constructive dialogue and serving as a bridge between youths and the Government, we hope to drive the keMAJUan (progress!) of Singapore.