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10 Key Point How to Buy a New Launch Condo in Singapore?
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10 Key Point How to Buy a New Launch Condo in Singapore?

How to Buy New Launch Condo Singapore 2025: 10 Key Steps

New launch condos in Singapore offer modern amenities, strategic locations, and strong investment potential with capital appreciation and rental yields. However, navigating the process requires understanding financial eligibility, government cooling measures, and market trends. This guide outlines the steps to purchase a new launch condominium in Singapore in 2025, optimized for first-time buyers and investors.

1. Assess Your Finances for a New Launch Condo

Before exploring new launch condos, evaluate your financial readiness:

  • Budget Analysis: Review your income, savings, and debts to determine affordability.
  • Total Debt Servicing Ratio (TDSR): Ensure your monthly debt obligations, including the mortgage, do not exceed 55% of your income.
  • Additional Costs: Account for:
    • Buyer’s Stamp Duty (BSD): Payable on all property purchases.
    • Additional Buyer’s Stamp Duty (ABSD): Applies to second properties or non-Singaporeans (Singaporeans buying their first property are exempt).
    • Legal fees and renovation costs.
  • Mortgage Pre-Approval: Obtain a non-binding Approval-in-Principle (AIP) from banks to confirm loan eligibility for new launch condos in Singapore.

Keyword Tip: Use tools like Singapore’s TDSR calculators to estimate your borrowing capacity for new launch condominiums.

2. Research New Launch Condo Projects

Finding the right new launch condo requires thorough research:

  • Location: Prioritize areas with growth potential, such as the Greater Southern Waterfront or Jurong Lake District.
  • Amenities and Developer Reputation: Check for quality finishes, facilities (e.g., pools, gyms), and the developer’s track record.
  • Proximity to Infrastructure: Look for condos near MRT stations, schools, or commercial hubs for higher resale or rental value.
  • Show Flats: Visit show flats to evaluate unit layouts, design, and build quality.

Pro Tip: Search for “new launch condo Singapore 2025” to find upcoming projects and early bird discounts.

3. Engage a Property Agent (Optional)

While not mandatory, a licensed property agent can streamline the process:

  • Benefits: Agents offer market insights, shortlist new launch condos, and negotiate on your behalf.
  • Verification: Ensure the agent is registered with the Council for Estate Agencies (CEA).
  • Customization: Choose an agent familiar with new launch condominiums in your preferred areas.

4. Select a Unit and Pay the Booking Fee

Once you’ve chosen a new launch condo:

  • Unit Selection: Pick your preferred unit based on floor, view, and size.
  • Booking Fee: Pay 5% of the purchase price (via cashier’s order or bank transfer) to secure the unit.
  • Option to Purchase (OTP): Receive the OTP from the developer, confirming your intent to buy.
  • Review Documents: Study the Property Details Information (PDI), including floor plans and condo rules.

5. Secure Financing for Your New Launch Condo

Within 14 days of receiving the OTP:

  • Bank Loan: Finalize your mortgage with a bank. Review the Letter of Offer for loan terms.
  • Solicitor: Appoint a conveyancing lawyer to handle legal paperwork. Compare fees, as banks may suggest panel firms.

Pro Tip: Shop around for competitive mortgage rates to reduce costs for your new launch condominium purchase.

6. Sign the Sales & Purchase Agreement (S&P)

The developer provides the S&P agreement within two weeks of the OTP:

  • Downpayment: Pay an additional 15% of the purchase price (total 20%, including the booking fee) using cash or CPF funds.
  • Signing Deadline: Sign the S&P within three weeks to confirm the purchase.

7. Pay Stamp Duties for Your Condo

Stamp duties are due within 14 days of signing the S&P:

  • Buyer’s Stamp Duty (BSD): For a $2 million condo, BSD is approximately $69,600 for a Singaporean’s first property.
  • Additional Buyer’s Stamp Duty (ABSD): Applies to second properties or non-Singaporeans (e.g., 20% for foreigners in 2025).
  • Exemption: Singaporeans buying their first new launch condo are exempt from ABSD.

Tip: Use “Singapore BSD calculator” or “ABSD rates 2025” to estimate costs.

8. Follow the Progressive Payment Scheme

New launch condos under construction use a staggered payment system:

  • Milestone Payments: Pay the remaining 80% of the purchase price based on construction stages (e.g., foundation, structural completion, TOP).
  • Timeline: Payments are spread over 2–3 years, with bank loans disbursed progressively.

Pro Tip: Monitor construction progress to anticipate payment schedules for your new launch condominium.

9. Await the Temporary Occupation Permit (TOP)

New launch condos typically take 3–4 years to complete:

  • TOP Issuance: The developer notifies you when the Temporary Occupation Permit is granted.
  • Unit Inspection: Check for defects during handover. Developers typically offer a one-year warranty for repairs.

10. Collect Keys and Move Into Your New Launch Condo

Once TOP is issued:

  • Key Collection: Finalize payments and collect your keys.
  • Renovation and Move-In: Plan renovations if needed and settle into your new condo.

Additional Tips for Buying a New Launch Condo in Singapore

  • Eligibility:
    • Singapore citizens and Permanent Residents (PRs) can buy private new launch condos.
    • PRs can purchase Executive Condos (ECs) only if married to a Singapore citizen.
  • Developer Incentives: Look for early bird discounts, flexible payment schemes, or freebies like furniture vouchers.
  • Investment Potential: New launch condos often yield capital appreciation upon TOP and strong rental returns due to modern designs and prime locations. However, consider risks like construction delays or market fluctuations.
  • Cooling Measures: Stay updated on government policies (e.g., ABSD rates, TDSR limits) that impact new launch condo purchases in Singapore.

Conclusion

Buying a new launch condo in Singapore is a strategic investment with long-term benefits. By assessing your finances, researching projects, and following the purchase process, you can secure a property that aligns with your lifestyle and financial goals. For the latest new launch condo listings in Singapore, consult us for unbiased consultancy.