New Condo Financing Singapore 2025: Complete Buyer's Guide

Introduction

Buying a new condo in Singapore, with prices averaging S$2,200 psf in 2025, requires careful financial planning. With 8,505 units launching in H1 2025, understanding financing options, stamp duties, and cost-saving strategies is essential. This guide provides a detailed overview, supported by data, to help you navigate the financial aspects of purchasing a new condo.

Financing Options

Bank Loans

Loan-to-Value (LTV): Up to 75% of the property price, with the remaining 25% covered by cash or CPF.
Interest Rates: Floating rates tied to SORA (2.75% in Q1 2025, down from 3.64% in 2024) or fixed rates around 3%.
Eligibility: Subject to Total Debt Servicing Ratio (TDSR), limiting debt payments to 55% of income.

HDB Loans

Eligibility: Available for Singapore citizens buying their first or second property, with a 2.6% fixed rate.
LTV: Up to 80%, making it more accessible for upgraders from HDB flats.

Progressive Payment Schemes

New launches allow payments in stages (e.g., 5% at booking, 20% during construction), easing upfront costs. This suits buyers expecting income growth over the 2–4-year construction period.

Associated Costs

Buyer’s Stamp Duty (BSD): 1% on the first S$180,000, 2% on the next S$180,000, 3% up to S$1M, and 4% thereafter.
Additional Buyer’s Stamp Duty (ABSD): 20% for Singaporeans on second properties, 60% for foreigners, impacting investment decisions.
Legal and Conveyancing Fees: S$2,000–S$5,000, depending on complexity.
Maintenance Fees: Vary by condo size and amenities, typically S$300–S$600 monthly for OCR units.

Cost-Saving Strategies

Compare Loan Packages: Shop around for banks offering lower rates or promotional packages.
Leverage Progressive Payments: Opt for new launches to spread costs over time.
Check for Discounts: Developers like those at Residences at W Sentosa Cove offered S$1,780 psf to clear inventory before ABSD deadlines.
Use CPF Funds: Maximize CPF Ordinary Account contributions to reduce cash outlay.
Engage a Mortgage Broker: Brokers can negotiate better terms and identify suitable loans.

Market Insights

In Q1 2025, lower SORA rates (2.75%) improved affordability, boosting sales by 71.7% year-on-year. HDB upgraders, benefiting from a 9.7% rise in HDB resale prices in 2024, are a key driver of demand, particularly in the OCR. However, high ABSD rates have reduced foreign buyer activity, with only 11 Chinese purchases in H2 2023, shifting focus to local buyers.

Risks to Consider

Interest Rate Fluctuations: Potential U.S. tariff policies could raise SORA rates, increasing borrowing costs.
ABSD Impact: High rates deter investors, particularly in the CCR, where prices average S$2,228 psf.

Conclusion

Financing a new condo in 2025 requires understanding loans, stamp duties, and market dynamics. Use our ABSD chart to estimate costs and explore progressive payment schemes for flexibility. With strategic planning, you can secure a condo that fits your budget and goals.

Financing Your New Condo in Singapore: A Complete Guide for 2025