To a lot of buyers, the process of buying a new launch condo can be rather confusing or complicated. Below are 2 tables that summarise the procedure of purchasing an uncompleted project (under construction) from the developer.
Payment of the First 20% Downpayment
| Timeframe | Stage | Payment |
|---|---|---|
| Day 1 | Signing of Option to Purchase (OTP) (Meanwhile selection of Mortgage loan & Engagement of Lawyer) | 5% Booking Fee |
| Within 2 weeks | Sales & Purchase Agreement (S&P) sent to Lawyer/ Buyer if no lawyer appointed | |
| Within 3 weeks from delivery of S&P | Buyer to sign and exercise S&P @ Law firm | |
| Within 2 weeks of Signing S&P | Buyer to pay Stamp Duty | BSD (3% - $5,400) + ABSD if applicable or BSD (4% - $15,400) + ABSD if applicable or BSD = (5% – $30,400) + ABSD if applicable or BSD = (6% – $60,400) + ABSD if applicable Please refer to the Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty below. |
| Within 8 weeks from Day 1 | Buyer to pay remaining downpayment (Cash/ CPF / Both) | 15% Downpayment |
The S&P must be exercised within 3 weeks upon delivery of the documents. If the option expires, 25% of the booking fee (which amounts to 1.25% of the purchase price) will be kept by the developer.
The duration of each stage can be earlier than stated, however, the completion date for the entire procedure must be within 8 weeks from the Date of Option. If there is any delay, a request in writing must be submitted to the developer and is subjected to approval.
Progressive payment for the remaining 80%.
| Estimated Timeframe | Stages | Payment |
|---|---|---|
| Est 6 – 9 months | Completion of Foundation Work | 10% |
| Est 6 – 9 months | Completion of Reinforces Concrete Framework | 10% |
| Est 3 – 6 months | Completion of brick walls | 5% |
| Est 3 – 6 months | Completion of roofing / ceilings | 5% |
| Est 3 – 6 months | Completion of electrical wiring, internal plastering, plumbing & installation of door & window frames | 5% |
| Est 3 – 6 months | Completion of carparks, roads, & drains serving the development | 5% |
| Notice of Vacant Possession (Temporary Occupation of Permit - TOP) | 25% | |
| Legal Completion date (Certification of Statutory Completion - CSC) | 15% |
The estimated timeframe might vary between different projects.
Buyer's Stamp Duty (BSD)
| Based on the purchased price or market value, whichever is higher | |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remaining | 6% |
Additional Buyer's Stamp Duty (ABSD)
| Profile Of Buyer | ABSD rates: 6th July 2018 - 15th Dec 2021 | ABSD rates: 16th Dec 2021 - 26th Apr 2023 | ABSD rates: On or After 27th Apr 2023 |
|---|---|---|---|
| Singapore Citizen Buying First Residential Property | Nil | Nil | Nil (No Change) |
| Singapore Citizen Buying Second Residential Property | 12% | 17% | 20% (Revised) |
| Singapore Citizen Buying Third and subsequent Residential Property | 15% | 25% | 30% (Revised) |
| Singapore PR buying First Residential Property | 5% | 5% | 5% (No Change) |
| Singapore PR buying Second Residential Property | 15% | 25% | 30% (Revised) |
| Singapore PR buying Third and subsequent Residential Property | 15% | 30% | 35% (Revised) |
| Foreigners buying residential property | 20% | 30% | 60% (Revised) |
| Entities buying residential property | 25% Plus Additional 5% for Developers (Non-Remittable) | 35% Plus Additional 5% for Developers (Non-Remittable) | 35% Plus Additional 5% for Developers (Non-Remittable) |
If there is any confusion with any of the stages, never hesitate to clarify with your real estate salesperson, banker or lawyer. It is very important to clear your doubts before making any financial commitment. Bear in mind that other than the Buyer’s Stamp Duty (BSD), there are also the Additional Buyer’s Stamp Duty (ABSD), Seller’s Stamp Duty (SSD) and Total Debt Service Ratio (TDSR) that need to be taken into serious consideration before buying a new home. Buyers who are currently staying in an HDB flat, will need to meet the Minimum Occupation Period (MOP) of 5 years before being eligible to buy their second residential property.
Can’t seem to find the perfect house? Give us a call / drop us a text @ +65 9137 4668 today. We have information on many of the existing and upcoming developments in Singapore, let us bring you closer to your desired dream home.
Previous trending condo launches in 2016 and 2017
