Top News

Buyers of new ECs now need to wait 10 years, up from five previously, before renting out their entire unit, selling it to Singaporeans or permanent residents, or purchasing another home under new restrictions announced last Friday by Chee Hong Tat, Singapore’s minister for National Development.

The period before ECs can be fully privatized, after which they can be sold to any buyers including foreigners and corporate entities, has also been extended to 15 years from 10, according to Bloomberg.

Meanwhile, a deferred payment scheme that allowed buyers to delay most of their payments until the units were ready for occupation has been scrapped.

Developers must set aside 90% of EC units for first-time buyers during the first two years from the project’s launch date, up from 70% and one month, respectively.

The updated rules apply to EC sites with tenders closing on or after May 8.

ECs are a form of hybrid private-public housing type built by private developers where buyers can still receive government grants.

These units are typically priced 20-30% below comparable 99-year leasehold private condos in the same area, but buyers are subject to restrictions, including a monthly household income cap of S$16,000 (US$12,600), according to EdgeProp Singapore.

However, EC prices have soared in the last 10 years, with median rates rising from S$782 per square foot (US$6,633 per square meter) in 2016 to S$1,843 between January and April this year.

Some owners have made large profits by reselling their units shortly after the MOP ended.

Mark Yip, CEO of real estate agency Huttons Asia, said more ECs have been sold on the resale market after five years, with some fetching over S$1 million above their launch prices.

The largest gain was over S$2 million for a four-bedroom unit at The Tampines Trilliant in April, he said.

Near-term boost in demand expected

Demand for the five upcoming projects not affected by the new restrictions is expected to rise, particularly among second-time buyers, according to analysts.

These include two at Woodlands Drive 17 and one each at Senja Close, Sembawang Road and Miltonia Close. Tenders for these five sites closed between August 2025 and April 2026.

Yip said the longer MOP for future projects could make these upcoming launches more attractive to buyers.

City Developments Limited, a major player in the EC market, has confirmed that the updated rules will not apply to its planned projects at Woodlands Drive 17 and Senja Close, both of which are scheduled for launch next year.

Nicholas Mak, chief research officer at property portal Mogul.sg, said the exemption given to the five upcoming EC projects effectively gives their developers “an unexpected bonus as the new EC regulatory changes strengthen their pricing power,” per The Business Times.

He expects some of the developments to launch at median prices close to S$2,000 per square foot.

Prices are expected to remain stable or edge higher in the near term because of elevated land costs

Analysts said the longer MOP is primarily aimed at the large resale profits some EC sellers have made in recent years, and could eventually result in fewer flippers.

“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,” said Kelvin Fong, CEO of property agency PropNex, as quoted by Channel News Asia.

“This may steer prospective buyers to other private resale condos and new mass-market project launches.”