Buying a new launch condo or an executive condo off-plan is exciting, but the payment journey looks very different from buying a completed resale property. Instead of one big settlement, you pay in tranches spread over the construction period — sometimes three to four years. If you do not understand how this works before you sign the Sales and Purchase Agreement (SPA), you risk nasty surprises at each milestone.
What Is the Progressive Payment Scheme?
Singapore's new launch residential properties (including ECs) sold under the Housing Developers (Control and Licensing) Act use the Progressive Payment Scheme (PPS) by default. Payments are tied to specific construction milestones certified by the building's architect or engineer. As each stage of the building is completed, the developer's solicitor issues a Notice of Payment, and you (or your bank) must pay the corresponding tranche within a fixed number of weeks — typically 14 weeks, though you should verify this in your own SPA.
This is fundamentally different from buying a completed resale condo, where you pay the bulk of the purchase price on the completion date.
The Standard Payment Milestones
The milestone percentages below reflect the standard schedule prescribed by regulations. Always verify the exact figures in your SPA, as minor variations can occur.
Stage
Milestone
Typical % of Purchase Price
Booking
Option to Purchase (OTP) exercised
5% (booking fee)
SPA signing
Within 8 weeks of OTP
15% (less booking fee)
Foundation
Completion of foundation work
10%
Reinforced concrete framework
Concrete structure completed
10%
Partition walls
Internal walls erected
5%
Roofing
Roof completed
5%
Windows & doors
Car parks, roads, drainage
5%
Fittings
Internal fittings, doors, windows
5%
Temporary Occupation Permit (TOP)
Building obtains TOP
25%
Certificate of Statutory Completion (CSC)
Full legal completion
15%
Total: 100%
Note that Buyer's Stamp Duty (BSD) is payable within 14 days of the date of the OTP or SPA (whichever is earlier). This is a separate cash outlay on top of the above — it does not form part of the purchase price tranches. If you want a refresher on how BSD is calculated, see .
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What is the Progressive Payment Scheme (PPS) for new launch properties in Singapore?
The Progressive Payment Scheme is the legally mandated payment structure for new residential properties sold by developers in Singapore. Instead of paying the full purchase price at one point, buyers pay in tranches as specific construction milestones — such as completion of foundations, the reinforced concrete framework, and the Temporary Occupation Permit — are certified by the project's architect or engineer.
When do I have to pay Buyer's Stamp Duty (BSD) on a new launch condo?
Buyer's Stamp Duty on a new launch condo must be paid within 14 days of the date of the Option to Purchase or the Sales and Purchase Agreement, whichever is earlier. This payment is separate from the progressive payment tranches and is an upfront cash obligation regardless of how the rest of your purchase is financed.
How does my bank loan get disbursed during the construction period for a new launch?
For a new launch property, a bank does not release the entire approved loan amount on day one. Instead, it disburses the loan progressively as each certified construction milestone is reached. During the construction period, your monthly repayments typically cover only the interest on the amount drawn down so far, with full principal repayment usually beginning after the Temporary Occupation Permit is obtained.
Do I still have to pay ABSD upfront even if I qualify for a remission later?
Yes. Additional Buyer's Stamp Duty must be paid within 14 days of the OTP or SPA even if you believe you qualify for a remission — for example, the remission available to Singapore Citizen married couples who sell their first home within the stipulated period after buying a second property. The remission is claimed after the conditions are fulfilled, not before. Buyers should confirm their eligibility and the exact deadlines directly with IRAS.
What is the difference between TOP and CSC in a new launch property purchase?
The Temporary Occupation Permit (TOP) means the building is certified safe to occupy and buyers can collect their keys and move in; a 25% payment tranche is typically due at this stage. The Certificate of Statutory Completion (CSC) signifies that the development fully complies with all statutory requirements, and the final 15% tranche — along with legal completion of the purchase — falls due at this later milestone. The gap between TOP and CSC can be several months.
The Deferred Payment Scheme (DPS) — Is It Still Available?
The Deferred Payment Scheme, which once allowed buyers to delay the bulk of payment until TOP, was removed by the government as part of property market regulation. It is no longer available for new launches in Singapore. All buyers are subject to the standard PPS milestones above.
How Your Bank Loan Fits In
When you take a bank loan for a new launch, the bank does not release the full loan amount on day one. Instead, it progressively disburses the loan in line with the construction milestones. You pay cash and/or CPF Ordinary Account (OA) funds for the earlier tranches, and the bank steps in as each certified milestone is reached.
A few important points:
Loan interest begins accruing from the first drawdown, not from TOP. This is called the construction loan period. Your monthly repayments during this phase cover only the interest on the amount drawn down so far — full principal repayment typically starts after TOP.
The Loan-to-Value (LTV) limit applies to the entire loan amount. For a first housing loan from a bank, the LTV ceiling is generally 75% of the purchase price or valuation, whichever is lower, subject to TDSR rules. Always verify current limits with your bank or MAS guidelines, as these can change.
The first two tranches — typically 5% booking fee and the remaining 15% on SPA signing — are among the most cash-heavy. Here is the key rule:
The minimum cash down payment for a bank loan is currently 5% of the purchase price (i.e., the 5% booking fee must be paid in cash). The remaining portion of the 20% down payment (before the bank's 75%) can be paid using CPF OA or cash.
If you are taking an HDB loan (only applicable to HDB flats, not private properties or ECs after privatisation), different rules apply.
This means before you exercise the OTP on a new launch, you should have:
At least 5% of the purchase price in cash
Sufficient CPF OA or additional cash to cover the remaining 15% at SPA stage
BSD cash ready within 14 days
Getting your finances in order before visiting a showflat is strongly advisable. A property budget plan that accounts for all tranches, not just the final price tag, is essential.
ABSD: Pay Now, Claim Remission Later
If you are a Singapore Citizen buying a second residential property, or a Permanent Resident or foreigner at any count, Additional Buyer's Stamp Duty (ABSD) is payable within 14 days of the OTP or SPA. This is a significant upfront cash obligation — ABSD rates are not trivial, particularly for second and subsequent properties.
Married couples who jointly purchase a new launch as their second property and intend to sell their first HDB flat within the stipulated timeframe may be eligible for an ABSD remission on the new private property. However, the ABSD must still be paid upfront first, with remission claimed only after the conditions are met. This is a common point of confusion — the money leaves your account regardless. Confirm eligibility and conditions with IRAS directly, as the rules around remissions have specific deadlines and requirements.
What Happens If You Miss a Payment?
Missing a payment notice is serious. The SPA will specify an interest rate charged on late payments — typically at a rate stipulated by law — for every day the payment is overdue. Sustained non-payment can give the developer grounds to treat the contract as terminated, which can result in forfeiture of a portion of the amounts already paid. Always calendar every milestone date and ensure your bank is alerted well in advance.
The TOP and CSC: Two Different Milestones You Must Understand
Many buyers assume that once they get their keys at TOP, everything is settled. In fact:
Temporary Occupation Permit (TOP): The building is safe to occupy. You collect your keys and can move in. The 25% tranche is payable here.
Certificate of Statutory Completion (CSC): The building fully complies with all statutory requirements. The final 15% — and the legal completion of your purchase — happens at this stage.
The gap between TOP and CSC can be months. Your solicitor will handle the mechanics, but you need to be financially prepared for that final 15% tranche. Some buyers refinance their construction loan into a standard mortgage at or after TOP — speak to your bank early about this.
Practical Tips for Managing the Progressive Payment Journey
Track every Notice of Payment — set calendar reminders the moment you receive each one.
Do not over-commit CPF early in the schedule; make sure you have enough in your OA for later tranches.
Review your TDSR position carefully if your income changes during the construction period. A job change could affect your loan eligibility at drawdown stages.
Keep a cash buffer for unexpected costs: legal fees, renovation deposits post-TOP, utilities connections, and the 15% CSC tranche.
Work with a CEA-registered agent and engage your own conveyancing solicitor — do not rely solely on the developer's panel.
This article is general information only and does not constitute personalised financial, legal, or tax advice. Rules and rates are subject to change. Always verify the latest requirements with HDB, IRAS, MAS, CPF Board, or a qualified professional before making any property decision.
Key Takeaways
New launch properties in Singapore use the Progressive Payment Scheme (PPS), with payments tied to certified construction milestones — not a single lump sum.
BSD (and ABSD if applicable) must be paid within 14 days of the OTP or SPA, separately from the purchase price tranches.
Bank loans are disbursed progressively; interest accrues from the first drawdown, so construction-period interest is a real holding cost.
At least 5% of the purchase price must be paid in cash (the booking fee); the remainder of the down payment can draw on CPF OA subject to eligibility rules.
ABSD remissions (where applicable) require the full ABSD to be paid upfront first — plan for this cash outflow.
Missing a payment notice triggers interest penalties and, in severe cases, contract termination with partial forfeiture.
TOP and CSC are two separate milestones — the final 15% tranche falls due at CSC, which can come months after you collect your keys.