Buying New Condo Singapore 2025: Complete Legal Guide
Introduction
Purchasing a new condo in Singapore, with 8,505 units launching in H1 2025, involves navigating a structured legal process. This guide details the steps, key terms, and considerations, supported by data, to ensure a smooth transaction in Singapore’s robust property market.
Step-by-Step Legal Process
- Option to Purchase (OTP): Pay a 5% booking fee to secure your unit, valid for 21 days.
- Pay Stamp Duties: Buyer’s Stamp Duty (BSD, 1–4%) and Additional Buyer’s Stamp Duty (ABSD, up to 30%) due within 14 days of OTP.
- Sign Sale and Purchase Agreement (SPA): Finalize the deal within 3 weeks of OTP, paying an additional 15–20% deposit.
- Progressive Payments: Pay in stages (e.g., 10% per construction milestone) over 2–4 years.
- Temporary Occupation Permit (TOP): Receive keys upon completion, typically 3–4 years post-purchase.
Key Legal Terms
- Freehold vs. Leasehold: Freehold offers permanent ownership; leasehold (99 years) is more affordable but depreciates over time. Only 11% of 2024 launches were freehold.
- Total Debt Servicing Ratio (TDSR): Limits debt payments to 55% of income, ensuring financial stability.
- Cooling Measures: ABSD and loan restrictions moderate speculative buying, impacting foreign demand (e.g., 11 Chinese purchases in H2 2023).
The chart below outlines the timeline of key legal steps for a typical new condo purchase.
Key Considerations
- Developer Licensing: Verify the developer’s license via URA to ensure legitimacy.
- Conveyancing Lawyer: Engage a lawyer to handle OTP and SPA, costing S$2,000–S$5,000.
- ABSD Remission: Couples may apply for ABSD remission if purchasing jointly for their first property.
- Project Timeline: Delays can occur, as seen in some 2023 projects affected by construction challenges.
Market Insights
In Q1 2025, sales reached 7,261 units, with OCR projects like Lentor Central Residences achieving a 93.3% take-up rate. The legal process remains standardized, but high ABSD rates have shifted demand to local buyers and upgraders, who accounted for most transactions. The GLS program’s controlled supply (8,505 units) ensures market stability but limits options, emphasizing the need for early action.
Risks to Consider
- Policy Changes: New cooling measures could increase costs or tighten eligibility.
- Construction Delays: Supply chain issues, though reduced since 2023, may delay TOP.
Conclusion
Navigating the legal process for a new condo purchase in 2025 is straightforward with proper planning. Use our timeline chart to stay on track and engage professionals to ensure compliance. With strong demand and limited supply, acting promptly is key to securing your ideal property.
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