Singapore’s New EC Rules In 2026: 10-Year MOP, 15-Year Privatisation Timeline And What It Means For Buyers

The Ministry of National Development (MND) made significant changes to the Executive Condominium (EC) scheme today.

The list of changes includes raising the Minimum Occupation Period (MOP) from five years to 10 years, as well as removing the Deferred Payment Scheme (DPS) for EC purchases. A larger portion of units in an EC will be reserved for first-timer families, and EC developments will be fully privatised after 15 years instead of the 10 years currently.

These measures will not impact the five EC projects already in the pipeline, and will be applied to new EC sites that close from today onwards.

Here’s why the three changes to the EC scheme are significant, and the likely impact it will have on the housing market.

Extension of the five-year MOP to 10 years

Previously, buyers of new ECs must fulfil a five-year MOP, before they can sell their EC unit on the open market to Singaporeans and Permanent Residents (PRs).

But the new regulation means that the MOP is now 10 years before owners can rent out their whole unit, purchase another residential property, or sell their EC unit to Singaporeans and PRs. After the 15th year, EC homeowners can sell their unit to any buyer.

In our view, this is the most significant adjustment to the EC scheme, and the extended MOP matches that Plus and Prime category Build-To-Order (BTO) flats. The adjustment likely aims to discourage the number of buyers who capitalise on the rapid price growth that this type of housing tends to achieve once it hits the open market, capitalising on the sale profits to acquire a condo.

Keep in mind that a unit’s MOP only begins from the point of key collection, not at the time of purchase, and this is also true for HDB flats. Based on the usual development time for a new EC of around three years, it will be approximately 13 years before future EC owners can sell their unit on the open market.

That’s a substantial period of time that could see private home prices continue to rise, or the government step in with new property cooling measures and financing restrictions. The age of the development is also a factor, since it affects the maximum loan tenure for a borrower’s mortgage.

“The longer holding horizon may reduce speculative motivations and encourage buyers to adopt a longer-term home ownership perspective,” Mohan Sandrasegeran, head of research and data analytics at SRI.

This is consistent with the conditions for Plus and Prime public housing – a 10-year MOP disincentivises buyers who intend to quickly capitalise on high EC prices as a stepping stone.

But for genuine homebuyers who need the location for convenient access to schools and employment, this drawback is far less significant. The difference between a five and 10-year MOP is less impactful if your intent is to live there for a long time.

However, anecdotally, we’ve heard from some agents on the ground who disagree with the notion that a lot of EC buyers simply flip the unit at the five-year mark. 

One agent noted that even with a well-known development like Hundred Palms Residences – which saw a record-breaking $3 million transaction – only 122 resale transactions out of 531 units involved units that were sold shortly after the MOP.

Read our analysis of the price performance at Hundred Palms Residences here.

ECs will now take 15 years to fully privatise

This change broadly follows the extension of the MOP to 10 years, as ECs were previously fully privatised after the 10th year. Full privatisation allows EC units to be sold to foreigners and corporate entities.

However, we opine that this may be the least impactful adjustment among the latest EC changes.

ECs have not typically been on the radar for most foreigners and corporate entities. Prevailing regulations like the additional buyer’s stamp duty (ABSD) also make their participation in this housing segment less likely, since foreigners currently pay 60% ABSD while entities pay 65%.

The point at which full privatisation does start to matter is when the condo ages. Unlike HDB flats, a privatised EC can be sold en-bloc to private developers. But this is often long past the 15-year mark.

A greater portion of EC units to be set aside for first-timers

Previously, developers were required to reserve 70% of the total number of units in a new EC for first-timers during the first month of launch. This has now been raised to 90%, with the priority period also extended significantly from one month to two years.

According to MND, this move is aimed at providing greater support for young married couples and families looking to buy their first home. The ministry also cited that the proportion of first-timer EC buyers has been declining in recent years, relative to second-timers who tend to have larger housing budgets that stem from the sale of their first home.

Minister for National Development Chee Hong Tat cited statistics that indicate that in the EC market, the proportion of first-time buyers slipped from around 50% in 2020 to 30-40% in 2024 and 2025.

This comes as average EC prices have almost doubled over the past decade. Earlier this year, we also wrote that certain limitations – such as the $16,000 income ceiling for ECs relative to the Mortgage Servicing Ratio (MSR) – compelled larger down payments.

This puts second-time homebuyers at a financial advantage, since they typically reenter the housing market after selling a HDB flat that may have appreciated substantially over the years.

Given the prevailing price dynamics in the EC market, it’s unsurprising that the proportion of first-timer EC buyers has steadily declined.

Kelvin Fong, CEO of PropNex, also points out that having a larger pool of units set aside for first-timers at launch could also ease competition from second-timers who have more financial resources, such as the proceeds from the sale of their flat. He adds that typically, the second-timer EC quota is quickly filled on the day the EC launches for sale.

The end of the Deferred Payment Scheme (DPS) for ECs

Previously, buyers who opted for DPS only needed to pay 20% upfront, with the remaining balance deferred until the project obtained its Temporary Occupation Permit (TOP). This differed from the Normal Payment Scheme, where buyers make progressive payments throughout the construction process. 

While buyers who used DPS typically paid a premium of around 2% to 3% on the purchase price, the scheme was popular because it provided greater flexibility. It gave buyers time to sell their existing property and raise more funds. In practice, DPS could reduce the immediate financial burden of purchasing an EC. 

The removal of DPS is likely intended to encourage greater financial prudence among buyers.

“The removal of the Deferred Payment Scheme could likely moderate initial take-up rates,” says Fong, adding that DPS adoption rates could reach “60% to 70% or more” for some projects.

Those numbers suggest DPS was not merely a niche financing option, but had become a significant driver at certain EC launches. Its removal could reduce the number of highly-leveraged buyers entering the market.

On the other hand, developers may take longer to move larger-sized, higher-quantum units like five-bedders.

At the same time, the removal of DPS could improve pricing transparency. Since DPS typically came with a premium attached, removing it could make headline EC prices more accurate. 

What are the likely consequences of these changes?

The most immediate consequence on the EC market may come soon, and influence the launch strategy of the EC projects already in the pipeline this year.

The new measures will only apply to future EC Government Land Sales (GLS) sites with tender closing dates from 8 May 2026 onward. From the 1H2026 GLS programme, there are two EC sites on the Confirmed List – a site at Canberra Drive this month, and a site at Sembawang Drive next month.

At the moment, there are five new EC projects that will be launch-ready this year. They are:

• A development on Senja Close in Bukit Panjang by City Developments Ltd (CDL)
• A project on Sembawang Road by Oriental Pacific Holdings
• A development on Miltonia Close in Yishun by Hoi Hup Realty
• and upcoming projects on Woodlands Drive 17 – one by CDL and the other by Sim Lian Group

These five upcoming EC projects will be the last under the previous framework, and we expect property agents and developer sales teams will hammer the point home: it’s the last chance to secure an EC that can be flipped after five years.

“By exempting the five yet to be launched EC projects, the developers of these projects are handed an unexpected bonus as the new EC regulatory changes strengthen their pricing power,” says Nicholas Mak, chief research officer of Mogul.sg.

He adds that some of these projects could potentially be launched “close to a median price of $2,000 psf”.

Anecdotally, some agents have shared with Stacked that they would caution buyers against rushing for these particular ECs. If you’re not a first-timer, and hence have lower odds of securing a unit anyway, you may be better off waiting for future launches, especially if you’re a genuine homebuyer and the 10-year MOP would be less significant to you.

There is a strong chance that the adjustments to the EC scheme could help to moderate price growth in this housing segment over the long-term. It’s simply this upcoming batch of five ECs, which sit in the transition window, will escape the changes.

After this, the likely outcome may be relatively slower sales momentum for future EC launches. Mak noted that affected EC projects in the future could potentially take about two to three years to sell all the units in the development, partly because the much larger first-timer allocation may take longer to absorb available supply.

How might developers respond to these changes?

Developers will likely be more cautious in their bids, says Fong of PropNex, adding that they will be observing how the latest adjustments influence take-up rates, financing conditions, and the purchasing power of first-time buyers.

Over time, this could eventually place some downward pressure on EC land bids and launch pricing, he says.

Meanwhile, Mak estimates that prices of future affected EC projects could potentially fall by around 5% to 7% from current median launch prices. This assumes no other big shake-ups, such as changes to the EC income ceiling. 

Most market watchers and analysts think that the underlying demand for ECs is unlikely to take a severe hit. Despite their rising prices, ECs are still relatively more affordable than condominiums, especially in terms of family units like three- and four-bedders.

Final thoughts

Ultimately, we do not think these changes represent a “repositioning” of the EC scheme so much as a return to its original intent.

The scheme was introduced in 1995 as a replacement for Executive flats, providing a housing option for a so-called ‘sandwiched’ demographic of Singaporeans whose incomes were too high to qualify for new flats, but found condos too expensive.

From our perspective, ECs are a home-owner scheme, and the government has been consistent in its aim of prioritising owner-occupation for Singaporeans.

At the same time, these changes may alter what buyers prioritise when choosing an EC. As future buyers will be committing to a holding period of at least a decade, factors such as accessibility, school proximity, layout practicality, and amenities become more crucial than before. They can no longer take the view that they just have to bear with it for five years and then move.

In that regard, it’s quite lucky that the quality gap between newer ECs and private condos have narrowed significantly over the years. For buyers who genuinely intend to stay long-term, the new measures don’t really do any harm (minus the annoyance of not being able to use DPS).