MOP for new ECs to be raised from 5 to 10 years, more units reserved for 1st-time buyers: Chee Hong Tat

The Minimum Occupation Period (MOP) for new Executive Condominiums (ECs) will be doubled from five to 10 years, Minister for National Development Chee Hong Tat announced during his keynote speech at Ireus Living Symposium, organised by the National University of Singapore, on May 8.

This is one of three measures announced by the minister to support first-time home buyers in the market for ECs.

Chee first announced a review of Singapore's EC housing scheme during this year's Committee of Supply debate.

The new measures will apply to all EC Government Land Sale sites with tender closing dates on or after May 8, 2026.

New measures

Sell to anyone after 15 years

With the extended MOP, EC homeowners will only be able to rent out the whole unit, purchase another residential property or sell their unit to Singapore Citizens and Permanent Residents after the 10th year.

In addition to the extended MOP, EC homeowners will now only be able to sell their unit to any buyer after the 15th year, including foreigners and corporate entities, up from the current 10-year period.

Deferred payment scheme

The Deferred Payment Scheme, which allows EC 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, will also be sunset.

Developers will no longer be allowed to offer the DPS for uncompleted ECs, and all EC home buyers will be subjected to the Normal Payment Scheme, which tags payment to construction milestones.

This is to encourage "financial prudence and to align with the arrangements for other uncompleted private residential properties", the Ministry of National Development (MND) said.

First-time buyers

The third measure Chee announced is to raise the percentage of units developers must reserve for first-time homebuyers from 70 per cent to 90 per cent.

They must also hold these units for first-time homebuyers for two years, up from the current one month.

"This will provide greater support for young married couples and families looking to buy their first home. With this measure, first-time homebuyers will have a better chance of securing ECs," MND said.

ECs were first introduced in 1995 to provide a more affordable option for Singaporeans who aspire to own private housing.

They are strata-titled and are developed and sold by private developers with design features and facilities similar to private condominiums.

However, ECs face initial eligibility and ownership restrictions, such as an income ceiling and a MOP.

Hence, they are priced by developers at around 20 to 30 per cent lower than comparable private condos, MND said.

Hope measures will lead to reduced prices: Chee

Announcing the new measures, Chee shared that the proportion of first-time EC buyers has decreased over the past few years, relative to second-time buyers who have "larger housing budgets" from the sale of their first house.

In 2020, half of EC buyers were first-timers, he shared.

The proportion dropped to between 30 and 40 per cent in 2024 and 2025.

Chee also mentioned that, from 2021 to 2025, about 75 per cent of ECs transacted on the open market were sold within five years after their MOP.

This is up from 45 per cent over the preceding five-year period.

The three changes to the EC housing scheme are made to "further support first-time home buyers", according to the minister.

"We also hope this will result in developers reducing their land bids and the prices for their ECs," Chee also said of the increased first-time EC buyers quota.

He commented that developers have sufficient time to study these measures and price them in when submitting their land bids for new tenders.