More and more buyers are leaning towards purchasing new condominium projects, whether for their own stay or for investment. It is estimated that more than 40 new launch projects will be released this year.
If you are a first-time homebuyer and are ready to buy a home in Singapore, you may be wondering about the entire process of purchasing a new condominium and the costs involved.
Today, AnjiaSG will provide a step-by-step guide on all the procedures and important considerations for buying a new condominium in Singapore.
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How to Buy a New Condominium in Singapore
Table of Contents
Step 1: Start Your Financial Planning
Based on your income, age, and other loan commitments, check the maximum home loan amount you can get and the condo price you can afford.
Feel free to consult us for a free loan assessment!
- Total Debt Servicing Ratio (TDSR): The TDSR is one of the property cooling measures. Its purpose is to limit the amount of money an individual can use to service their debts each month. The current TDSR is 55%, which means you cannot use more than 55% of your gross monthly income to repay all your loans. This includes car loans, home loans, and even credit cards.
- Loan-to-Value (LTV) Ratio: Your first residential property can be financed up to a 75% LTV limit with a bank loan.
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It’s important to note that if you have any outstanding housing loans and you wish to purchase a second condominium property, the LTV limit will be reduced to 45%.
At this stage, it is best to obtain an Approval In-Principle/In-Principle Approval (AIP/IPA) from a bank. An AIP is an estimate of the loan amount a bank is willing to provide for your home purchase. An AIP is typically valid for 30 days.
AnjiaSG has in-house mortgage specialists who have long-term, close partnerships with all major banks in Singapore, assisting you in choosing from various home loan packages. We provide our home loan services for free, so feel free to contact us!
Mortgage Consultation:
Step 2: Shortlist Suitable New Condos and Book a Showflat Viewing
Before being swayed by the developer’s hot marketing strategies, you should consider the following points to ensure you are making the right decision:
1. Location (transport convenience and amenities)
2. Unit size
3. Condominium facilities
4. The internal layout of the condo
5. Potential for appreciation (based on future developments)
6. Current property market conditions
7. Rentability
8. Surrounding environment
9. Developer’s track record
Once you have shortlisted your preferred projects, the next step is to contact a local Singapore property agent to assist you. You can also contact us to recommend suitable properties. Currently, due to the COVID-19 pandemic, booking an appointment to view a showflat is mandatory.
What are the benefits of booking an appointment with AnjiaSG’s real estate consultants?
We can assist you with the following for free;
- A comprehensive guided tour of the showflat
- Exclusive and neutral insights
- Research and comparison of existing property projects (we are the appointed sales team for all developers)
- Recommending suitable properties based on your specific needs and requirements
- Simplifying and facilitating the entire buying process
Step 3: Secure Your Preferred New Condo Unit
When buying a new condominium in Singapore, you need to pay 5% of the property price in cash as a deposit when booking and signing the Option to Purchase (OTP) to officially reserve the unit. This means that if you decide to back out of the purchase, you will forfeit a portion of the deposit (usually 25%).
Once you have the OTP, you can begin the bank loan application process. The bank you are borrowing from will issue you a Letter of Offer (LO) — a document containing the terms and conditions under which the bank will provide you with the loan.
Next, you will also need to appoint a law firm to represent you during the purchase process and handle the property transfer matters. In Singapore, property transactions must be conducted through a lawyer.
AnjiaSG has long-term, close partnerships with all major law firms in Singapore. We will recommend cost-effective law firms for you for free. Feel free to contact us!
Step 4: Sign the Sales & Purchase Agreement
- Within two weeks of receiving the OTP, the developer will send the Sales & Purchase Agreement (S&P) to your appointed law firm.
- Within three weeks of the law firm receiving the S&P, you must sign it and exercise the OTP.
- Within two weeks of signing the S&P, you must pay the Buyer’s Stamp Duty.
- Within eight weeks of signing the OTP, you must pay the remaining 15% down payment (in cash or with CPF).
When buying a property in Singapore, every buyer is required to pay the Buyer’s Stamp Duty (BSD). The higher the property price, the higher the tax.
For residential properties, you are required to pay the following taxes:
| Property Price (SGD) | Stamp Duty Rate |
| <$180,000 | 1% |
| $180,000 to $360,000 | 2% |
| $360,000 to $1,000,000 | 3% |
| $1,000,000 to $1,500,000 | 4% |
| $1,500,000 to $3,000,000 | 5% |
| >$3,000,000 | 6% |
Singapore Buyer’s Stamp Duty (BSD) Rate Table
Buyers of a certain status also need to pay the corresponding Additional Buyer’s Stamp Duty (ABSD). The following is the rate table for ABSD:
| Buyer Profile | First Property | Second Property | Third and Subsequent Property |
| Singapore Citizen | None | 20% | 30% |
| Singapore Permanent Resident (PR) | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Non-individual Buyer | 65% | 65% | 65% |
Singapore Additional Buyer’s Stamp Duty (ABSD) Rate Table
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Step 5: Make Payments Until Completion
From this point on, you will make payments in stages. The payment schedule for purchasing a new launch condominium in Singapore is as follows:
| Payment Stage | Construction Progress | Payment Percentage |
| First Payment
6 – 12 months |
Foundation work completed | 10% |
| Second Payment
6 – 9 months |
Reinforced concrete framework completed | 10% |
| Third Payment
3 – 6 months |
Brick walls completed | 5% |
| Fourth Payment
3 – 6 months |
Ceiling/Roofing completed | 5% |
| Fifth Payment
3 – 6 months |
Doors, windows, electrical wiring, plumbing, and interior plastering completed | 5% |
| Sixth Payment
3 – 6 months |
Car parks and drainage systems completed | 5% |
| Seventh Payment
3 – 6 months |
Obtained Temporary Occupation Permit (TOP) | 25% |
| Eighth Payment
9 – 12 months |
Obtained Certificate of Statutory Completion (CSC) | 15% |
Progressive Payment Scheme for New Launch Property
💡Tip: If you do not plan to apply for a loan, you do not need to pay the full amount at once. You can make payments according to the construction progress.
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Step 6: Collect the Keys to Your New Home
When the new condominium you have purchased obtains its Temporary Occupation Permit (TOP), the developer will notify you and set a date for you to collect the keys to your new home. At this point, your journey of buying a new condominium in Singapore is successfully completed.
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