Answer
Under-Construction Condo Payment — Progressive Payment Schedule
Buying a new launch means paying over 2-4 years as the condo gets built. Here's exactly when each payment kicks in.
Answer: Under the Progressive Payment Scheme, you pay 5% booking fee on exercise of OTP, then 15% on signing the S&P (within 8 weeks), followed by stage payments at each construction milestone. Total reaches 100% by TOP. Stamp duty (BSD + ABSD) is payable upfront on the full purchase price within 14 days of S&P. Your bank loan disburses progressively — you only pay interest on the amount drawn down so far.
Progressive Payment Schedule
Standard schedule for Building Under Construction (BUC) properties
| Stage | Construction Milestone | % | Cumulative |
|---|---|---|---|
| 1 | Booking fee (OTP exercise) | 5% | 5% |
| 2 | S&P execution (within 8 weeks) | 15% | 20% |
| 3 | Foundation work completed | 10% | 30% |
| 4 | Reinforced concrete framework completed | 10% | 40% |
| 5 | Brick wall completed | 5% | 45% |
| 6 | Ceiling/roofing completed | 5% | 50% |
| 7 | Electrical wiring completed | 5% | 55% |
| 8 | Internal plastering completed | 5% | 60% |
| 9 | Car park, roads, drains completed | 5% | 65% |
| 10 | TOP (Temporary Occupation Permit) | 25% | 90% |
| 11 | CSC (Certificate of Statutory Completion) | 10% | 100% |
Schedule prescribed by Housing Developers (Control and Licensing) Act. Stages 1-2 are from your down payment (cash + CPF). Stages 3-11 are from your bank loan + remaining CPF.
Example — $1.5M Under-Construction Condo
SC first-timer, 75% LTV bank loan ($1,125,000)
| Stage | Amount | Paid From | Cumulative |
|---|---|---|---|
| Booking fee (5%) | $75,000 | Cash (5%) | $75,000 |
| S&P signing (15%) | $225,000 | CPF OA (up to 20%) | $300,000 |
| Stamp duty (BSD) | $44,600 | Cash / CPF OA | — |
| Foundation (10%) | $150,000 | Bank loan | $450,000 |
| RC framework (10%) | $150,000 | Bank loan | $600,000 |
| Brick wall – drains (25%) | $375,000 | Bank loan | $975,000 |
| TOP (25%) | $375,000 | Bank loan | $1,350,000 |
| CSC (10%) | $150,000 | Bank loan | $1,500,000 |
During construction, you pay interest only on the amount disbursed so far. Full mortgage instalments start at TOP.
Progressive Payment vs Developer Absorption Scheme
| Factor | Progressive Payment | Developer Absorption |
|---|---|---|
| How it works | You pay interest on progressive drawdowns | Developer absorbs interest until TOP |
| Monthly cost during construction | $500–$2,000 (interest only) | $0 until TOP |
| Purchase price | Market price | Usually 2-3% higher |
| Availability | All new launches | Rare — needs MAS approval |
| Stamp duty timing | Upfront on full price | Upfront on full price |
| Best for | Most buyers | Buyers with no rental income to cover interest |
Note: The Developer Absorption Scheme is rarely offered since MAS tightened regulations. Most new launch buyers use the standard Progressive Payment Scheme.
Stamp Duty Timing — Key Point
For under-construction condos, stamp duty is calculated and payable on the full purchase price within 14 days of signing the S&P — even though you haven't paid the full price yet and the condo doesn't exist.
| Purchase Price | BSD (SC 1st) | When Due |
|---|---|---|
| $1,000,000 | $24,600 | 14 days after S&P |
| $1,500,000 | $44,600 | 14 days after S&P |
| $2,000,000 | $69,600 | 14 days after S&P |
ABSD (if applicable) is also due at the same time and must be paid in cash.
Considering a new launch?
Calculate your total stamp duty and monthly mortgage to know the full cost before you commit.
FAQ
How does payment work for a condo under construction in Singapore?
Under the Progressive Payment Scheme, you pay in stages as the condo is built: 5% booking fee on exercise of OTP, 15% on signing the Sale & Purchase (within 8 weeks), then progressive payments at each construction milestone. Total reaches 100% by Temporary Occupation Permit (TOP).
What is the Progressive Payment Scheme?
The Progressive Payment Scheme is the standard payment method for Building Under Construction (BUC) properties in Singapore. Instead of paying the full price upfront, you pay a percentage at each construction stage — foundation, reinforced concrete, brick wall, ceiling, etc. — until 100% is paid by TOP.
What is the Developer Absorption Scheme?
Under the Developer Absorption Scheme (now rarely offered), the developer absorbs the loan interest during construction. You only start paying mortgage instalments after TOP. The trade-off: the purchase price is typically higher to compensate the developer, and this scheme requires specific MAS approval.
When do I pay stamp duty for an under-construction condo?
You pay Buyer's Stamp Duty (BSD) and ABSD (if applicable) within 14 days of signing the Sale & Purchase Agreement — upfront on the full purchase price, even though the condo is not built yet. For a $1.5M condo, that's $44,600 BSD for a first-time SC buyer, paid early in the process.
Can I use CPF for progressive payments on an under-construction condo?
Yes, you can use CPF OA for the down payment (up to 20% of purchase price) and progressive instalments. However, the minimum 5% cash requirement for the booking fee and first payment still applies. CPF drawdown happens automatically at each payment stage if you set it up with your bank.
Related
- Stamp Duty Calculator — any price, any buyer profile
- Progressive Payment Scheme — pay in stages as condo is built
- Mortgage Calculator — monthly payment breakdown
- New Launch vs Resale Condo — premium + wait vs value + now
- Down Payment for First Condo — 25% (5% cash + 20% CPF)
Last updated Feb 2026. Payment schedule based on Housing Developers (Control and Licensing) Act. Actual stages and timing vary by project. This is general information, not financial advice.