Singapore will introduce new restrictions to curb the resale of certain housing units, a move the government hopes will reduce short-term speculative activity and enhance housing affordability.

In a speech on Friday, National Development Minister Desmond Lee announced that the government will implement new measures for Executive Condominiums (ECs). The minimum occupation period for such apartments will be doubled to 10 years, one of several steps intended to further assist first-time homebuyers.

Executive Condominiums were introduced in Singapore three decades ago as a form of quasi-public housing. Most local residents live in government-built, subsidized apartments. ECs are constructed by private developers and come with amenities such as swimming pools, but new units are priced lower than most private condominiums, and buyers are eligible for government grants.

The new restrictions aim to cool rising property prices and narrow the emerging arbitrage gap between Executive Condominiums and private apartments. Some homeowners have been selling their ECs on the secondary market for significant profits shortly after the units become eligible for resale.

Minister Lee stated that the government must cater to persistently strong housing demand while addressing the diverse needs of residents at different life stages. He also emphasized the need to ensure that public housing remains affordable and accessible amid a changing economic environment.

Under the new minimum occupation period rule, owners who purchase new Executive Condominiums must reside in them for 10 years before they can rent out the entire unit, sell it to Singapore citizens or permanent residents, or purchase another residential property.

Additionally, owners must hold the Executive Condominium for 15 years before it can be sold on the open market to foreigners or corporate entities. Developers will also no longer be permitted to offer deferred payment schemes for uncompleted Executive Condominiums.