Executive condo minimum occupation period doubled to 10 years

First-time home buyers quota for new EC units has been raised to 90%.

The Ministry of National Development (MND) announced changes to land tenders and developments involving the executive condominium (EC) housing scheme, and has extended the minimum occupation period (MOP) to ten years.

Under the changes, buyers of new ECs will now have to fulfill a 10-year MOP before they can rent out their whole unit, purchase another property, or sell their EC unit to permanent residents and Singapore citizens. Owners can only sell their ECs to any buyer after the 15th year.

Currently, buyers of new ECs must fulfill a five-year MOP before they can sell their EC unit.

MND also revised the first-time home buyers quota to 90%, from 70% previously. The priority period is being extended from one month to two years.

Developers can no longer offer the deferred payment scheme (DPS) for uncompleted ECs. The normal payment scheme will apply to all EC home buyers.

Under the DPS, EC buyers must pay 20% of the purchase price upfront. The remaining 80% is deferred until the project obtains its temporary occupation permit. Buyers who opt for the DPS generally had to incur a 2% to 3% premium over the EC unit purchase price, the MND said.