Executive condo policy to be reviewed following affordability concerns: Chee Hong Tat

SINGAPORE - Singapore is reviewing its executive condominium (EC) policy given concerns over affordability, said National Development Minister Chee Hong Tat on March 4.

Speaking in the debate on his ministry’s budget, he noted that ECs were introduced in 1995 to provide an option for higher-income Singaporeans who aspire to own private housing.

Broadly, prices of new EC units are about 20 per cent to 30 per cent lower than comparable private condominiums, he said, adding that eligible buyers can also tap a Central Provident Fund Housing Grant of up to $30,000.

But Mr Chee also acknowledged MPs’ concerns over EC prices, saying: “We are reviewing the policy and we will consider your suggestions as part of the review.”

Mr Louis Chua (Sengkang GRC) from the Workers’ Party asked how the authorities can continue to ensure affordability for EC units, the median price of which stood at $1,754 per sq ft (psf) in 2025.

According to data from the Urban Redevelopment Authority, this was 14 per cent higher than the $1,537 psf in 2024, and more than double the $797 psf recorded in 2015.

ECs are built by private developers but are sold under Housing Board regulations. Their owners have to meet a minimum occupation period (MOP) of five years before they can sell their properties to Singaporeans and permanent residents.

They can sell or rent to foreigners only after the EC is fully privatised after 10 years.

“While ECs are priced by private developers, prices are lower than private housing as we impose initial eligibility and ownership restrictions, such as an income ceiling and a minimum occupation period,” Mr Chee said.

He added that ECs are strata titled and have design features and facilities similar to private condominiums, and are therefore more comparable to condominiums than HDB resale flats.

During the debate, Mr Chua said the prices of EC units had “skyrocketed” in the past 10 years. He pointed out that in 2024, the average price of an EC unit was $1,531 psf, 154 per cent higher than that of an HDB resale flat, which was about $603 psf.

This was up from 2016, when the average price of an EC unit was $782 psf – 84 per cent higher than the average price of $424 psf for an HDB resale flat.

Mr Chua noted that ECs started out as a more affordable option for young couples who want to purchase a private condominium but do not have the means to do so.

“I urge the MND (Ministry of National Development) to seriously rethink the current EC model and... to bring the price of ECs into a range that will suit their original intentions,” he said.

Mr Chee was also asked about other measures, such as the 15-month wait-out period for private property home owners looking to buy HDB resale flats and the income ceiling review for Build-To-Order (BTO) flats, as well as upgrading in older HDB estates.

15-month wait-out period

Turning to the

15-month wait-out period

, Mr Chee said the restriction, which has been in place since September 2022, will be removed when market conditions allow.

“While the recent data looks promising, it is prudent to monitor for a while more before making any adjustments,” he said.

The HDB resale market has moderated in recent months, with the price growth of resale flats slowing from 12.7 per cent in 2021 to

2.9 per cent in 2025

.

HDB resale prices remained unchanged in the fourth quarter of 2025 for the first time since the first quarter of 2020. As at mid-February, HDB resale prices for the year have shown a slight decline of 0.1 per cent, he added.

Mr Chee said this follows efforts by the Government to ramp up BTO flat supply, as well as four rounds of cooling measures over the last few years.

Between 2021 and 2025, some 102,400 new flats were launched.

Mr Ang Wei Neng (West Coast-Jurong West GRC) and Mr Cai Yinzhou (Bishan-Toa Payoh GRC) had highlighted the difficulties faced by private home owners who are going through life transitions such as divorce or financial strain, and hope to downgrade.

Mr Chee said the authorities are watching the market closely and are ready to adjust measures, keeping in mind that more flats will reach their MOP in the coming years and will add to the supply of resale flats. HDB will continue to consider appeals on a case-by-case basis.

Income ceiling review

Addressing questions on the

income ceiling review for BTO flats

, Mr Chee said the authorities need to ensure that supply is adequate before making such changes, as a higher income ceiling will result in more applicants.

Mr Pritam Singh (Aljunied GRC) had suggested removing the income ceiling for a small category of buyers, such as for first-timer couples who exceed the income eligibility threshold.

To maintain fairness, extra restrictions such as a longer MOP could be imposed, he said.

In response, Mr Chee said the income ceiling is still necessary because it ensures that BTO flats, which are highly subsidised, are prioritised for those earning below the income ceiling. Higher-income earners can access other housing options, he said.

If the income ceiling is removed, the trade-off is that there will be additional competition from buyers with higher incomes, he added.

Mr Chee noted that the current income ceiling – $14,000 for families and $7,000 for singles – covers around eight in 10 Singaporean households.

Voluntary Early Redevelopment Scheme

Touching on the

Voluntary Early Redevelopment Scheme (VERS)

, Mr Chee said the Government will work on redeveloping older HDB towns through the scheme over the next few decades.

VERS, which has yet to be rolled out, will allow owners of flats aged 70 years and older to vote on whether the Government should buy back their homes before their 99-year leases run out. Mr Chee had earlier said the programme will begin with a few sites in the first half of the 2030s, and will be

scaled up from the late 2030s

.

The aim is to flesh out as much of the VERS policy framework as possible within this term of Government, he added. When the initial proposals are ready, MND and HDB will engage Singaporeans to seek their views and feedback before the policy is firmed up.

Mr Henry Kwek (Kebun Baru) and Mr Xie Yao Quan (Jurong Central) suggested designing the policy so that residents affected by VERS need not top up money for their replacement flat. Mr Chee said their suggestions will be considered carefully.

In the meantime, residents in HDB estates will benefit from other upgrading programmes such as the Neighbourhood Renewal Programme and the Silver Upgrading Programme, Mr Chee said.

There is also the

Home Improvement Programme (HIP)

, which spruces up older housing estates and resolves common maintenance problems, such as spalling concrete.

The second round of HIP upgrades that HDB flats will undergo at the 60- to 70-year mark – known as HIP II – will be more extensive and make use of new technologies like microwave scanning, he said, adding that more details will be announced when they are ready.