Financing set for shake-up as EC scraps DPS, raises quota

10-year MOP and DPS removal shift EC launches toward first-timer demand. 

Government changes to the Executive Condominium (EC) scheme are expected to affect financing and buyer composition, with analysts pointing to the removal of the Deferred Payment Scheme (DPS) as the most immediate shift influencing affordability and launch demand.

Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group, said DPS has been widely used amongst EC buyers, with uptake in some projects reaching 60% to 70%. 

“The DPS is a popular scheme among both first-time and second-time buyers, as it allows them to make only a 20% down payment and defer the remaining 80% of their mortgage payments until the project receives its Temporary Occupation Permit,” she said.

She added that removing DPS aligns EC financing with the Normal Payment Scheme used for other uncompleted private residential developments, where payments are made progressively.

Mark Yip, CEO of Huttons Asia, said the measures are likely to influence demand and land bids.

“The changes are likely to cool land bids for EC moving forward,” he said, adding that a lower second-timer allocation may redirect some demand to private residential projects.

Yip also noted that the longer 10-year minimum occupation period (MOP) could affect upgrader decisions, particularly for buyers managing existing housing loans.

The Ministry of National Development (MND) announced on 8 May that EC developments with GLS tender closing dates on or after 8 May 2026 will face three changes, namely MOP extended from five to 10 years, DPS removed, and first-timer quota raised from 70% to 90%, alongside a two-year priority period for first-time buyers.

Under the revised framework, EC owners must meet the 10-year MOP before selling, renting out the whole unit, or purchasing another residential property. Full resale flexibility, including to foreigners and corporates, applies after 15 years.

PropNex CEO Kelvin Fong said the measures may affect early launch absorption.

“We expect the new measures could have some upstream impact on EC land bids, given the uncertainty as to how the market may react to the changes,” he said.

Sun added that historical data shows a significant share of EC resale transactions occurred within 10 years of completion, based on past patterns.

She also said the higher first-timer quota may reduce second-timer participation at launch, potentially shifting some demand to resale private condominiums or resale HDB flats.