<div id="readability-page-1"><div><figure><div><div><img src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/q63xw4nt_yUIjvHZ0Ik9Jg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjg-/https://media.zenfs.com/en/straits_times_442/e35f81e0b2dac4d39bc5cb66bedcf5b2?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1242" height="828" original-src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/q63xw4nt_yUIjvHZ0Ik9Jg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjg-/https://media.zenfs.com/en/straits_times_442/e35f81e0b2dac4d39bc5cb66bedcf5b2"/></div></div><figcaption>The affordability of new ECs has come under the spotlight because robust demand from second-time buyers, who can tap capital gains from their HDB sale.</figcaption></figure>SINGAPORE – Some Housing Board upgraders say the new measures aimed at prioritising first-time home buyers applying for executive condominiums (ECs) may put such homes out of their reach, while first-time buyers are weighing their newfound options.The affordability of new ECs has come under the spotlight because robust demand from second-time buyers, who can tap capital gains from their HDB sale, and higher land and development costs have fuelled a sharp run-up in the prices of new ECs in recent years. This, in turn, has deterred first-time home buyers.To address affordability concerns, National Development Minister Chee Hong Tat on May 8 announced three measures that will apply to all EC government land sales (GLS) sites with tender closing dates on or after May 8.These include a longer minimum occupation period (MOP) of 10 years, and a larger pool of EC units set aside for first-timers at launch to ease competition from second-timers who typically have more financial firepower.It is the third measure, the scrapping of the deferred payment scheme (DPS), that will put an EC out of reach for Mr Andy Lu, 49, who lives in a four-room HDB flat in the city fringe.The DPS would have allowed Mr Lu, who works in the food and beverage industry, to pay a 20 per cent down payment and defer the remainder for several years until the project obtains its temporary occupation permit.But under the normal payment scheme, in which buyers make progressive payments as construction milestones for the project are met, he would have to make payments for the EC while still servicing the mortgage for his HDB flat. This, he said, is “only possible for those who are cash rich”.Software engineer Brandon Koh, who has been looking to upgrade from his four-room flat in Tampines to an EC in the area, said he will have to rethink his upgrading plans.Without the deferred payment scheme, the 38-year-old second-timer said he may need to save for at least a few more years to buy an EC.“Even if I am in a good financial position to upgrade, it would be even more difficult to get a ballot number as a second-timer,” he pointed out.The proportion of EC units set aside for first-time buyers at launch will be raised to 90 per cent from the current 70 per cent, and the priority period for such buyers extended from one month to two years.Housing research analyst Ethan Hariyono has been eyeing ECs in the eastern part of Singapore, and said the changes will give him more time to accumulate enough cash.But the 27-year-old first-timer said he would have preferred to use the DPS, as that would have bought him time for interest on his CPF funds and investments to grow, and allowed him to build his reserves for the 80 per cent deferred payment.Still, the current higher EC launch prices are a deterrent, he added. “That means I would have to fork out a big downpayment, and I don’t want a situation where my parents have to reverse mortgage their condo to help pay for my EC.”He is now considering getting a more centrally located resale flat, or a suburban resale condo or resale EC, as he is planning to get married by 2028 and hopes to find a home by then.PropNex agent Jeremy Tan said he notified up to 100 clients of the changes on May 8, but so far has not seen buyers rushing to snap up over 140 remaining units at Coastal Cabana, one of the last few EC projects exempt from the new measures.“It usually takes some time for buyers to realise, ‘Oh shoot, this is my last chance to buy,’” he said.But second-timers, almost all of whom are HDB upgraders, will probably give up, he said.He pointed to one client, a second-timer who had hoped to buy an EC once his BTO flat reaches MOP, but is now setting his sights on resale condos.First-time buyer John Lim said he would prefer to buy an EC from a project that is exempt from the new measures, because the five-year MOP will provide more flexibility should he need a bigger space for his family.“It’s a good move that the Government is prioritising first-timers, but I’m hoping to move into my first home in about three years’ time, so now is a good time to buy,” the 29-year-old commodities analyst said.If he cannot secure an EC unit, he plans to apply for a BTO flat in a central area or near an MRT station.Source: The Straits Times © SPH Media Limited. 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Some Housing Board upgraders in Singapore express concerns that new measures prioritizing first-time home buyers for executive condominiums (ECs) may make these homes unaffordable for them. The changes include a longer minimum occupation period and a larger allocation of units for first-timers, while the scrapping of the deferred payment scheme could hinder second-timers' ability to upgrade. As a result, many are reconsidering their plans, with some opting for resale properties instead. The government aims to address affordability issues amid rising EC prices driven by demand from second-time buyers.

EC changes: Some HDB upgraders say they may be edged out as first-timers gain priority