DPS was a significant cashflow benefit where it applied, since most of the price stayed in the buyer's hands, earning interest or servicing other needs, until the unit was ready. With DPS removed for new ECs, buyers now pay at each construction milestone under the Normal Payment Scheme, the same structure that applies to private condominium new launches.
The removal adds real cash drag for EC buyers, since money that would previously have stayed liquid until TOP is now committed progressively during construction. It does not eliminate EC's value proposition for the right buyer, EC still typically launches at a 15 to 20 percent discount to comparable private condominiums.
For buyers under the S$16,000 monthly household income ceiling with strong CPF balances and a hold horizon of 10 years or more, EC under the current Normal Payment Scheme can still make financial sense despite the loss of DPS.
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Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.