[Guide to Buying a New Launch Condo]

A new launch condominium refers to an uncompleted property (Building-Under-Construction or BUC) sold directly by a property developer to buyers. The payment schedule for uncompleted properties is strictly regulated by Singapore's Housing Developers Rules, which all local developers must strictly adhere to.

Step 1: Securing the Option to Purchase (OTP)

Developers use a standardised Option to Purchase (OTP) contract prescribed by the Controller of Housing. Granting an OTP secures your right to purchase the unit. At this stage, the buyer must pay a booking fee of 5% of the purchase price in cash. Once signed, the developer is legally bound to sell the property at the agreed price and cannot revoke or amend the contract. The OTP is valid for a stipulated period; if the buyer chooses not to exercise the OTP, the purchase intention lapses, 25% of the 5% booking fee will be forfeited by the developer, and the remaining 75% will be refunded to the buyer.

Step 2: Signing the Sale & Purchase Agreement (S&P), Paying the Balance Downpayment, and Arranging the Mortgage

Within 2 weeks of granting the OTP, the developer will deliver the Sale & Purchase (S&P) Agreement to the buyer or their appointed conveyancing lawyer. Within 3 weeks of receiving the S&P Agreement, the buyer must sign and exercise the option. The total downpayment for a new private condominium is 20% of the purchase price. Having already paid the 5% booking fee, the buyer must pay the remaining 15% downpayment within 8 weeks from the OTP grant date, which can be funded via cash and/or CPF Ordinary Account (OA) savings.

Buyers financing the purchase with a bank loan must source their loan package and secure a Letter of Offer within the validity period of the OTP by providing proof of local income. Regulatory guidelines stipulate that a buyer's total monthly debt obligations cannot exceed 60% of their gross monthly income under the Total Debt Servicing Ratio (TDSR) framework.

For foreign buyers without local income, such as buyers from mainland China, proof of RMB funds or assets from state-owned banks will be required. For instance, if an overseas buyer intends to purchase a Singapore property priced at approximately S$1 million, they must present equivalent proof of funds to a Singapore bank to qualify for a loan-to-value (LTV) limit of up to 75%.

Step 3: Staged Payments under the Progressive Payment Scheme (PPS)

Once the 20% downpayment is fulfilled, the remaining purchase price is disbursed in stages according to the construction milestones. If the purchase is backed by a bank loan, the bank will disburse funds progressively; monthly repayments and interest apply only to the amounts disbursed so far. Depending on the construction pace, the entire development period typically spans 3 to 4 years.

Typical Progressive Payment Milestones:

Within 6–9 months: Completion of foundation work – 10% payment.

Subsequent 6–9 months: Completion of reinforced concrete framework – 10% payment.

3–6 months: Completion of brick partition walls – 5% payment.
3–6 months: Completion of roofing/ceilings – 5% payment.
3–6 months: Completion of carparks, roads, drains, and communal facilities – 5% payment.
3–6 months: Completion of doors, window frames, electrical wiring, and plumbing – 5% payment.
3–6 months: Temporary Occupation Permit (TOP) issued and key collection – 25% payment.