Condo Progressive Payment in Singapore – All you need to know
With many new developments slated to launch in Singapore in 2019 after the en bloc spree, it is definitely a buyers market right now. If you are currently looking out for all the new condo launches, one crucial aspect that you will need to know is about how the condo progressive payment works.
So since we are talking about new launches that have not been constructed yet, one big advantage for you as a buyer is that you do not have to make the full payment right at the start. This means that a new launch that has a condo progressive payment scheme is an attractive option for buyers as you can stretch out your repayments over a longer time. The payments are set out in milestones from the beginning, and these would only have to be paid up when the developer attains the set milestone. Thus, it is seen as less of an undertaking as the payments are spread out up until the Temporary Occupation Permit (TOP) is issued. After which you will have to pay quite a big lump sum of 25%.
Reader questions like the one above rarely have a clear-cut answer. The “right” move depends on your finances, timeline, long-term goals, and how much downside you’re prepared to accept if things don’t go to plan.
That’s the hardest part of any property decision, not finding information, but understanding what it means for your situation before committing.
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Let us look at an example of a typical condo progressive payment in Singapore.
Assuming a condo purchase price of $1.5 million, this would be the usual progressive payment scheme you will see.
| Stage | % of Purchase Price | Amount SGD ($) |
| Upon grant of Option to Purchase | 5% (booking fee) | $75,000 |
| Upon signing of the Sale & Purchase Agreement or within 8 weeks from the option date | 15% | $225,000 |
| Stamp Duty (1st Property) This is payable within 2 weeks of sining the Sale & Purchase Agreement | $44,600 | |
| Completion of foundation work | 10% | $150,000 |
| Completion of reinforced concrete framework | 10% | $150,000 |
| Completion of partition walls of unit | 5% | $75,000 |
| Completion of ceiling of the unit | 5% | $75,000 |
| Completion of door and window frames, electrical wiring, internal plastering and plumbing of unit | 5% | $75,000 |
| Completion of car park, roads and drains serving the housing project | 5% | $75,000 |
| Temporary Occupation Permit or Certificate of Statutory Completion | 25% | $375,000 |
| On Completion Date | 15% | $225,000 |
Note that in the scenario legal completion of the Sale & Purchase Agreement occurs before the issue of the Certificate of Statutory Completion (CSC), 2% will be paid to the developer on legal completion and the remaining 13% will be paid to the Singapore Academy of Law (SAL) as the stakeholder.
If the CSC is issued before the legal completion of the Sale & Purchase Agreement, 13% will have to be paid within 14 days after the buyer receives notice of the CSC. The final 2% will have to be paid to the developer upon legal completion.
So that is it for all you need to know about condo progressive payment in Singapore! As always feel free to leave a comment below or you can always reach us at stories@stackedhomes.com! If you need help to calculate, here is a useful calculator from moneyiq!
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1 Comments
Can you share how this might change with delays in construction?