What Nobody Tells You About New Launch Condos in Singapore

What Nobody Tells You About New Launch Condos in Singapore

Three modern high-rise condominium buildings in Singapore are shown against a clear, light blue sky. The buildings are primarily glass and concrete, reflecting the sunlight. The foreground building is the tallest and is viewed from a slightly low angle, emphasizing its height. The other two buildings are slightly smaller and positioned behind and to the left. Large white text overlayed on the top left corner reads "What Nobody Tells You About New Launch Condos in Singapore." Below this, smaller white text states, "Thinking of buying a new condo in Singapore? Don't make a move until you discover the 3 surprising stages every new launch goes through - and how each affects your price, payment, and unit choice." Bullet points in white text below this highlight key information: "Learn the difference between Pre-Launch, Under Construction & Ready-to-Move Units," "Real examples of current 2025 projects Included," and "Understand payment schemes, ABSD, BSD & legal fees before you commit."

Considering purchasing a new launch condominium in Singapore? While many are enticed by the allure of brand-new units and potential capital appreciation, it’s crucial to understand that not all new launch condos are the same. There are three distinct phases in the launch of a condominium, each with its own set of procedures, payment schemes, and benefits.

This article delves into:

  1. Ballot-Stage New Launches (Pre-Launch Phase)

  2. Direct Purchase New Launches (Post-Launch, Under Construction)

  3. Ready-to-Move-In New Launches (TOP Obtained)

We’ll explore each phase in detail, providing insights into the buying process, payment structures, and current examples to guide your investment decisions.

1. Ballot-Stage New Launches (Pre-Launch Phase)

What Is It?

In the early phase of a condo launch, developers invite potential buyers to submit an Expression of Interest (EOI) accompanied by a blank cheque, typically amounting to 5% of the anticipated purchase price. This phase doesn’t guarantee a unit; instead, buyers enter a balloting process to determine the order of unit selection. Actual pricing details are often unveiled only on the launch day itself.

Payment Scheme: Progressive Payment

Buyers benefit from the Progressive Payment Scheme, where payments are made in stages aligned with construction milestones

  • Booking Fee: 5% in cash upon signing the Option to Purchase (OTP).

  • Downpayment: 15% (cash or CPF) within 8 weeks from the OTP date.

  • Subsequent Payments: Tied to construction stages, such as foundation completion, structural framework, and issuance of the Temporary Occupation Permit (TOP).

2. Direct Purchase New Launches (Post-Launch, Under Construction)

A large, temporary hoarding surrounds a construction site or sales gallery for "sora," a residential development. The hoarding features promotional imagery and text. The tallest section displays the word "sora" in elegant, light grey lettering above an artist's impression of modern apartment buildings reflected in a body of water, possibly a lake or reservoir. Text below this image reads "Find Your Sanctuary in the Lap of Outdoors. Tranquil Living Next to Jurong Lake Gardens." Smaller panels attached to the main hoarding provide additional information, including a map showing the location relative to "Yuan Ching Road," another artist's rendering of the development, a QR code, and the logo for "JURONG LAKE GARDENS." The hoarding is situated along a road with a pedestrian walkway and a blue and white circular sign. Lush green trees are visible in the background under a partly cloudy blue sky.

Sora condo at the doorstep of Jurong Lake Gardens to be completed in 2028

What Is It?

These are projects that have officially launched, and units are available for direct purchase without the need for balloting. Buyers can select available units and secure them by paying the option fee.

Payment Scheme: Progressive Payment

Similar to pre-launch purchases, these units follow the Progressive Payment Scheme:

  • Option Fee: 5% in cash upon signing the OTP.

  • Downpayment: 15% (cash or CPF) within 8 weeks from the OTP date.

  • Subsequent Payments: Aligned with construction milestones.

The key advantage here is the certainty of unit selection without the unpredictability of balloting.

Examples of Current Projects

3. Ready-to-Move-In New Launches (TOP Obtained)

What Is It?

These are newly completed condos that have obtained the Temporary Occupation Permit (TOP), allowing buyers to move in immediately. Unlike under-construction projects, buyers can physically inspect the actual units before purchase.

Payment Scheme: Full Payment or Deferred Payment Scheme (DPS)

Buyers are typically required to make full payment upfront, which includes:

  • Option Fee: 5% in cash upon signing the OTP.

  • Balance Payment: 95% (cash, CPF, or bank loan) within 8 weeks.

Some developers offer the Deferred Payment Scheme (DPS), allowing buyers to pay a portion upfront and defer the remaining payment:

  • Initial Payment: Typically 20% (5% option fee + 15% upon signing the Sales & Purchase Agreement).

  • Deferred Payment: Remaining 80% payable after a stipulated period, usually 2-3 years.

Note: DPS is only available for completed units and may come with a price premium.

Examples of Current Projects

A view of three modern, high-rise residential buildings in Singapore, partially framed by lush green tree branches in the foreground. The buildings feature a contemporary design with numerous balconies and large windows, suggesting apartment or condominium units. The central building is particularly distinctive, with a sky bridge connecting two separate towers at a high level. The buildings are painted in light colors with contrasting darker accents. The sky above is bright blue with a few scattered white clouds. The surrounding area appears to be a mix of urban development and green spaces, with the tops of more trees visible below the buildings.

The Line @ Tanjong Rhu for those who love the beach

💰Additional Costs to Consider

When purchasing a new launch condo in Singapore, be mindful of the following additional costs:

  • Buyer’s Stamp Duty (BSD): A tax levied on property purchases, calculated as follows:

    • 1% on the first $180,000

    • 2% on the next $180,000

    • 3% on the next $640,000

    • 4% on the remaining amount

     

  • Additional Buyer’s Stamp Duty (ABSD): Applicable based on the buyer’s residency status and the number of properties owned. For instance, Singapore Citizens pay:

    • 0% for the first property

    • 12% for the second property

    • 15% for the third and subsequent properties

     

  • Legal Fees: Typically range from $2,500 to $3,500, depending on the law firm and property price.

  • Maintenance Fees: Monthly fees for condo upkeep, usually between $400 to $800.

🧠 Final Thoughts

Understanding the different stages of new launch condos in Singapore is crucial for making informed purchasing decisions. Whether you’re entering the market during the pre-launch phase, opting for a unit under construction, or considering a move-in-ready condo, each stage offers unique advantages and considerations.

Always consult with property experts and financial advisors to navigate the complexities of property purchases and ensure that your investment aligns with your financial goals.

Let’s discuss your specific property needs. Book your private 1 on 1 consultation with me via the whatsapp window or text me directly@ +65 87865200

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