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 Wednesday (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 to 30 per cent lower than comparable private condominiums, he said, adding that eligible buyers can also tap a CPF Housing Grant of up to S$30,000.

But he also acknowledged MPs’ concerns over EC prices, saying: “We are reviewing the policy and we will consider your suggestions as part of the review,” Chee said during a debate on his ministry’s budget on March 4.

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

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

ECs are developed by private developers but are sold under Housing Board regulations. Their owners have to meet an 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,” Chee said.

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

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

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 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. THE STRAITS TIMES