Buying a new launch condo in Singapore for the first time can feel like learning a foreign language. The sequence moves fast on launch day, the paperwork has its own jargon, and the payment schedule stretches over years. Here is what I walk every client through before they step into a showflat, so that when the moment comes, they are calm, prepared, and making decisions rather than just reacting.
If you are still weighing whether a new launch is right for you compared to a resale unit, it is worth reading through my comparison of new launch vs resale condos first. This guide picks up from the point where you have decided a new launch or a recently-TOP project is the direction you want to go.
Step 1: The Ballot, the Queue, and Launch Day
Most major new launches in Singapore today use a balloting system for the initial launch. You register your interest during the preview period, and the developer draws a ballot to determine your queue number for selection day. A lower number means you get to pick your preferred unit earlier — before the best stacks are taken.
Here is what I always remind clients: the ballot is not a commitment. You are simply securing a place in the queue. You can still walk away after you see what is left when your number is called. But you do need to arrive prepared with your documents and finances ready, because if you want to book a unit, you will need to act quickly.
On selection day, bring your NRIC (and passport if you are a foreigner or PR), and know in advance which unit types you are targeting and your absolute budget ceiling. Showflat crowds can create pressure; having a clear brief beforehand keeps you grounded.
Step 2: The Booking Fee and the Option to Purchase (OTP)
When you select your unit, you pay a booking fee — commonly called the option fee — to the developer. This is typically 5% of the purchase price, though the exact amount is set by the developer. Always confirm this figure with the developer or your agent before launch day.
In exchange, the developer issues you an Option to Purchase (OTP). This document gives you a fixed window — usually three weeks — to decide whether to proceed. During this period, you arrange your finances, instruct a lawyer, and review the OTP terms carefully.
If you choose not to exercise the OTP, you forfeit the booking fee. So treat the booking fee as the point of real commitment, not just a casual reservation.
Step 3: Exercising the OTP and Signing the Sale and Purchase Agreement
To proceed, your lawyer exercises the OTP on your behalf before the deadline. Shortly after, you sign the Sale and Purchase Agreement (SPA), which is the binding contract between you and the developer. At this stage, you pay an additional portion of the purchase price — typically bringing your total paid up to around 20% — though again, confirm the exact schedule in the SPA itself.
Your lawyer will also handle the lodgement of a caveat on the property, protecting your interest on the title.
Step 4: Stamp Duties — BSD and ABSD
Stamp duties are payable after you exercise the OTP. There are two to be aware of.
- Buyer's Stamp Duty (BSD) applies to all purchases. It is calculated on a tiered basis against the purchase price or market value, whichever is higher. Check the current rates directly with IRAS, as these have been updated in recent years.
- Additional Buyer's Stamp Duty (ABSD) applies depending on your residency status and how many properties you already own. Singapore Citizens buying their first residential property are currently exempt from ABSD. PRs and foreigners, and citizens buying second or subsequent properties, face ABSD at rates that are material enough to significantly affect your budget. Confirm the exact rates with IRAS or your lawyer before committing, as ABSD rates have changed several times and are subject to further revision by the government.
BSD is due within 14 days of exercising the OTP. ABSD is due at the same time. These are not small amounts — factor them into your total cost calculation from day one.
Step 5: The Progressive Payment Scheme (for Buildings Under Construction)
This is the part that catches many first-time new launch buyers off guard. Unlike a resale purchase where you pay the full sum at completion, a new launch condo uses the Progressive Payment Scheme (PPS). You pay in tranches as construction milestones are reached.
A simplified version of the typical schedule looks like this:
| Construction Stage | Typical Payment Due |
|---|---|
| Booking (Option Fee) | ~5% |
| Signing SPA | Balance to ~20% |
| Foundation completed | ~10% |
| Concrete framework completed | ~10% |
| Partition walls completed | ~5% |
| Roofing completed | ~5% |
| Windows, doors, electrical completed | ~5% |
| Notice of Vacant Possession (TOP) | ~25% |
| Legal completion (Certificate of Statutory Completion) | ~15% |
The exact percentages are defined in the SPA and governed by the Housing Developers Rules. Your bank loan disbursements are tied to each stage — the bank pays the developer directly as each milestone is certified. Your CPF (if you are using it) is similarly drawn down progressively. Confirm the schedule in your own SPA and with your mortgage banker.
For a recently-TOP or completed project, the full payment is due much sooner — more like a resale timeline — because there are no remaining construction stages. This affects your cash flow planning considerably.
Step 6: Financing — Your Loan and CPF
Before you book, get an In-Principle Approval (IPA) from your bank. This tells you how much you can borrow and at what indicative rate. The actual loan offer is issued closer to when disbursements begin.
Key rules to be aware of (confirm current limits with your bank or MAS guidelines):
- The Total Debt Servicing Ratio (TDSR) caps how much of your gross monthly income can go toward debt repayments. Lenders assess this before approving your loan.
- The Loan-to-Value (LTV) limit determines the maximum loan as a percentage of the property value. This depends on whether you have existing property loans.
- CPF Ordinary Account (OA) funds can be used toward the purchase price and monthly mortgage payments, subject to CPF Board rules including the Valuation Limit and Withdrawal Limit. Confirm what applies to your specific situation with CPF Board.
Step 7: TOP, Handover, and Legal Completion
Temporary Occupation Permit (TOP) is issued by the Building and Construction Authority (BCA) when the development is substantially completed and safe to occupy. This is when you collect your keys and can move in or rent out the unit. Note that TOP does not mean the project is fully finished — some common areas may still be under work.
Legal completion (also called Certificate of Statutory Completion, or CSC) follows later, usually within months of TOP. This is when legal ownership is formally transferred and the final payment tranche is due.
The timeline from booking to TOP for a new launch in Singapore typically ranges from three to five years, depending on construction progress. This is one of the most important factors to weigh when deciding between a new launch and a resale or recently-TOP project.
If you want to see how this plays out in practice for specific projects, I have detailed reviews for Chuan Grove Residences, The Serra Residences, and Claydence that walk through unit mix, pricing context, and who each project makes sense for.
A Quick Summary of the Full Sequence
- Register interest and ballot for queue number
- Select unit and pay booking fee; receive OTP
- Instruct lawyer; review OTP and financing
- Exercise OTP; pay stamp duties (BSD and ABSD)
- Sign SPA; pay balance to reach initial payment tranche
- Progressive payments as construction milestones are reached
- Collect keys at TOP; make penultimate payment
- Legal completion and final payment
What I Tell Every Client Before They Walk Into a Showflat
Know your numbers before you go. That means total budget (including stamp duties and legal fees), your IPA amount, and the maximum monthly commitment you are comfortable with across the progressive payment period. New launch buying is genuinely exciting — and it should be — but it rewards preparation more than impulse.
If you are working through the numbers for a specific project, or you are not sure whether a new launch or a completed unit suits your timeline better, I am happy to sit down and walk through it with you. No pressure, just a proper conversation. Reach out through the contact page and let me know what you are considering — I will come prepared with what actually matters for your situation.