08/05/2026
Why bother with these new EC โCooling Measuresโ? ๐ง
Executive Condominiums (ECs) were originally designed for the โsandwich classโ - a vital bridge for those squeezed out by skyrocketing private condo prices. However, the recent policy changes raise a serious question: Who is this actually for? ๐คทโโ๏ธ๐คทโโ๏ธ
For families looking to upgrade from HDBs, ECs were the last refuge. Buying a private second property triggers a 20% ABSD upfront. While remissions exist, the cash flow strain makes it unviable for many. ECs bridged this gap with no ABSD payable.
Letโs look at the math for a first-timer couple (based on 2024 Labour Force statistics):
๐ The Scenario:
Age: 30
Combined Income: $11,740 ($5,870 each - median for this age bracket)
Grant: $10,000 EC Grant
Max Loan (MSR 30%): ~$737,722
Affordable Purchase Price (at 75% LTV): $983,629
๐ The Reality Check:
The current cheapest, smallest unit available (e.g., Coastal Cabana at 872 sqft) is priced at $1.535M. With current EC land bids, future launches are targeting an entry of $1,7XX psf. Using the same size, prices will likely remain at this level or higher. Their loan only covers 48% of the price - nowhere near the 75% limit.
๐ The Cash Flow Crunch:
With the Deferred Payment Scheme (DPS) removed, couples must follow the Normal Payment Scheme (NPS). Within two years, as the Foundation and Reinforced Concrete stages are completed, this couple would need to cough up roughly $587,721 (including BSD, minus the grant).
To afford this, a graduate entering the workforce at 24 would need to save $6,122 per month (Cash + CPF) for 8 years straight. Is this even possible?
Even at the $16,000 income ceiling, a couple's MSR-capped loan only supports a ~$1.3M purchase. In todayโs market, where 5-bedroom ECs are hitting $2.7M, the math simply doesn't add up for the sandwich class - unless they have significant "intergenerational wealth."
So, who really benefits?
These changes donโt seem to help the average first-timer; they marginally benefit those from a higher socio-economic standing who could already afford private condos.
๐ My Takeaway:
As a practicing real-estate salesperson with an academic background in the field, these changes appear overall negative, especially for the "sandwiched" second-timers.
The Current Regulatory Hurdles:
โข Income ceiling of $16,000: Unchanged despite the rapid increase in property prices.
โข Removal of DPS: Hinders loan eligibility and eliminates the EC Deferred Bridging Loan.
โข MSR at 30%: A massive bottleneck compared to private property TDSR.
โข Redundant Grants: Counter-intuitive given the staggered rates and high entry prices
โข Tighter Quota: Further restricting second-timers.
To reiterate: who exactly are ECs meant for now? With these regulations, it feels like the EC is becoming a redundant product - or perhaps a signal that the authorities are retiring the very idea of the Executive Condominium.
If you are planning your next move, this is something you cannot ignore. Connect with us if you want a deeper discussion on how these EC changes may impact your upgrading strategy.
