Buying New Launch Condo Timeline in Singapore

Purchasing a new launch condo in Singapore is an exciting yet complex process that requires careful planning and attention to detail.

To help you navigate this journey, here’s a comprehensive timeline outlining each step from initial research to moving into your new home.

1. Pre-Launch Preparation (1-2 Months)

Research and Budgeting

• Research: Start by identifying potential new launch projects. Compare locations, amenities, and the reputation of the developers.
• Budgeting: Determine your budget, considering the downpayment, monthly mortgage, and additional costs like stamp duties and legal fees.

Financial Assessment

• Loan Eligibility: Check your loan eligibility and get an In-Principle Approval (IPA) from banks. This gives you a clear idea of how much you can borrow.
• CPF and Savings: Ensure you have sufficient funds in your CPF Ordinary Account (OA) and savings for the downpayment and other costs.

2. Pre-Launch (1-2 Weeks)

Register Interest

• Express Interest: Register your interest with the developer or appointed marketing agents to receive updates on the project launch.
• Attend Preview: Attend the VIP preview or soft launch to get the first look at the project, floor plans, and pricing.

3. Booking Day (1 Day)

Balloting and Selection

• Balloting: If demand is high, a balloting system may be used to allocate units. Attend the balloting session if applicable.
• Unit Selection: If successful in the ballot, select your preferred unit and pay the booking fee (usually 5% of the purchase price).

4. Option to Purchase (OTP) (2 Weeks)

Receive OTP

• Option Fee: Pay the option fee (usually 5% of the purchase price minus the booking fee) to receive the OTP.
• Review OTP: Carefully review the OTP document, including the terms and conditions.

Secure Financing

• Formal Loan Application: Submit a formal loan application to the bank with the OTP.
• Valuation: The bank will conduct a valuation of the property.

5. Exercise OTP (3-4 Weeks)

Exercise the OTP

• Exercise Fee: Pay the exercise fee (usually 15% of the purchase price) to exercise the OTP. This fee can be paid using CPF and/or cash.
• Sign Sales and Purchase Agreement: Sign the Sales and Purchase Agreement (S&P) with the developer.

6. Stamp Duty Payment (2 Weeks)

Pay Stamp Duty

• Buyer’s Stamp Duty (BSD): Pay the BSD within 14 days of signing the S&P.
• Additional Buyer’s Stamp Duty (ABSD): If applicable, pay the ABSD within the same period.

7. Progressive Payments (Construction Period)

Progressive Payment Scheme

Payments are made in stages based on construction milestones. Common stages include:

• Foundation Completion: 10%
• Superstructure Completion: 10%
• Roof Completion: 5%
• Completion of Brick Walls: 5%
• Completion of Ceiling: 5%
• Completion of Door and Window Frames: 5%
• Completion of Carpark, Roads, and Drains: 5%
• Temporary Occupation Permit (TOP): 25%
• Completion Date: 15%

8. Temporary Occupation Permit (TOP) (2-3 Years)

TOP Issuance

• Inspection: Inspect the unit for any defects and report them to the developer for rectification.
• Final Payment: Make the final payment upon receiving the TOP.

9. Key Collection (1-2 Months)

Collect Keys

• Handover: Collect the keys to your new condo unit from the developer.
• Move-In: Arrange for moving in and setting up your new home.

Using CPF savings for a condo purchase in Singapore is a practical way to manage the financial burden. Here’s a summary of how CPF can be utilized at different stages:

Conclusion

The process of buying a new launch condo in Singapore involves multiple steps, each with its own timeline. From initial research and financial assessment to securing the unit and making progressive payments, it’s essential to stay organized and adhere to the timelines to ensure a smooth purchase process. Consulting with real estate agents, financial advisors, and legal professionals can also help navigate the complexities of buying a new launch condo.

By following this timeline and preparing adequately, you can confidently embark on your journey to owning a new launch condo in Singapore.