Buying a New Launch Condo in Singapore: A Complete Guide
Buying a brand-new condo directly from a developer is one of the most exciting — and most misunderstood — property purchases you can make in Singapore. The process, the paperwork, and the pitfalls are quite different from picking up a resale unit on the open market.
What Is a New Launch Condo?
A new launch condo is a private residential development sold by a licensed developer, typically before or shortly after construction begins. Units are sold based on floor plans, scale models, and showflat displays — you are buying something that does not yet physically exist, or is still being built.
New launches are governed by the Housing Developers (Control and Licensing) Act and overseen by the Controller of Housing under URA. Developers must obtain a Sale Licence before selling any unit, and all payments are handled through a prescribed Progressive Payment Scheme.
The Showflat Experience: What to Know Before You Walk In
Showflats are designed to impress. Furniture is often custom-scaled to make rooms appear larger, and display units may feature premium fittings that are not standard. Always request the defects list, the sales brochure, and the unit floor plan with dimensions before making any decisions.
Key questions to ask at a showflat:
- What is the indicative price per square foot (psf) for the unit type you want?
- What is included in the standard fitting-out? What costs extra?
- How many units are in the development, and how many have already been sold?
- Who is the architect, main contractor, and expected TOP (Temporary Occupation Permit) date?
Bring a calculator. Ballpark figures from a sales rep should be verified against the formal price list, which developers are required to make available.
The Booking Process: OTP and Exercise
When you decide to buy, you sign an Option to Purchase (OTP) and pay a booking fee — typically 5% of the purchase price — in cash. This secures your chosen unit.
You then have three weeks to formally exercise the OTP by signing the Sale and Purchase Agreement (S&P) and paying a further portion of the purchase price. If you do not exercise within this window, you forfeit a portion of the booking fee (typically 25% of the 5% paid).
Once the S&P is exercised, you are legally committed. This is the point at which you must have your financing — whether a bank loan or your own funds — clearly sorted. Before signing anything, make sure you already have an In-Principle Approval (IPA) from a bank, and understand your TDSR and LTV limits. If you need a refresher on how borrowing limits work, the TDSR and MSR Explained: What Every Singapore Buyer Must Know guide covers the mechanics in full.
Câu hỏi thường gặp
- What is the booking fee for a new launch condo in Singapore, and is it refundable?
- The booking fee for a new launch condo is typically 5% of the purchase price, paid in cash when you sign the Option to Purchase. If you choose not to exercise the OTP within the three-week window, you forfeit a portion of this fee (commonly 25% of the 5% paid); the remainder is refunded.
- Do I pay stamp duty on a new launch condo in Singapore?
- Yes. Buyer's Stamp Duty (BSD) applies to all residential property purchases in Singapore, including new launch condos, calculated on the purchase price or market value, whichever is higher. Additional Buyer's Stamp Duty (ABSD) may also apply depending on your citizenship status and how many properties you already own — check current rates with IRAS before committing.
- What is the Progressive Payment Scheme for new launch condos?
- The Progressive Payment Scheme is a legally standardised payment schedule tied to construction milestones — such as foundation, structural frame, roof, and TOP — where buyers pay instalments as each stage is completed rather than a single lump sum. This means your bank loan is also drawn down in tranches, and interest accrues on each disbursed amount during the construction period.
- Can I use my CPF OA savings to pay for a new launch condo in Singapore?
- Yes, CPF Ordinary Account (OA) savings can be used to fund the progressive payments on a new launch condo purchase, subject to CPF housing withdrawal limits and the property's lease tenure requirements. You should check with the CPF Board for the specific limits applicable to your situation before factoring CPF into your budget.
- Is there a Minimum Occupation Period (MOP) for new launch private condos in Singapore?
- No, private condos — including new launches — do not have an HDB-style MOP. However, Seller's Stamp Duty (SSD) applies if you sell within a prescribed number of years of purchase, making short-term resale costly. You should verify the current SSD holding period and rates with IRAS before buying with a short-term exit in mind.