5 Reasons to Buy a New Launch Property in Singapore: A Step-by-Step Guide for HDB Upgraders, Foreigners, and Youth

Many young Singaporeans and international buyers dream of upgrading from an HDB flat to a sleek, brand-new private condo (a new launch). In fact, a TODAY youth survey found that 78% of Singaporeans aged 18–35 consider owning a private home a life goal.

With property prices on the rise and the “Singapore Dream” still alive, it’s no wonder that upgraders, foreigners and first-time investors are eyeing new launches for their modern amenities, fresh fittings and long-term growth. This guide will walk you through why new launches can be worth it, and how to buy one – with tailored tips for HDB upgraders, foreign buyers, and young investors.

Key Benefits of Buying a New Launch

Buying a newly launched condo in Singapore comes with a host of perks that older properties usually don’t offer. Here are some of the top advantages:

Brand-new Amenities & Interiors

New launches boast spanking new facilities – think a gym, pool, rooftop terrace, and playground that nobody has used yet. All the fittings (kitchen appliances, bathroom fixtures, etc.) are unused and under warranty, so you won’t inherit any “wear and tear”. You literally get to enjoy a fresh home environment for years before anything needs fixing.

Developer Perks & Discounts

Buying directly at launch often comes with sweeteners. Developers may offer early-bird discounts, absorb certain fees (even part of the stamp duty), or throw in free furnishings. You also get a wider choice of units (floor, view, layout) when you book early, unlike the limited options on the resale market.

Progressive Payment Scheme

Unlike resale condos (where you pay 100% at S&P), new BUC (Building Under Construction) projects use a Progressive Payment Scheme. You pay in stages as construction milestones are met – for example, 5% at booking, 10% at foundation, 10% at structural frame, etc. This spreads out your cash flow over 3–4 years, making it easier on your wallet.

Modern Design & Features

New launches often have cutting-edge layouts and smart-home features (EV chargers, high ceilings, efficient insulation, etc.). Many come with energy-efficient appliances and designs that older condos simply can’t match. This means better comfort and potentially higher resale value later.

• Long-Term Appreciation: Historically, private condos in Singapore have appreciated faster than HDB flats. For example, one analysis shows that over 20 years (2004–2024), private condo prices roughly tripled, whereas HDB prices only about doubled. In the last 10 years specifically, condos rose ~53% while HDBs rose ~27%. Although past performance isn’t a guarantee, many upgraders see new launches as an investment in long-term capital growth.

A modern new condominium development with ample facilities is a big draw for buyers seeking an upgrade. New launches often mean brand-new gyms, pools and play areas that residents can enjoy immediately.

Developer Payment Scheme

An added bonus is that you don’t pay it all up front. With a new launch, you typically only need 5% of the purchase price in cash to book the unit. The rest of the downpayment and balance are spread out. For example, you might pay 5% on booking (often with a small additional Option Fee), then 15% over the next 8 weeks at Sales & Purchase (S&P), and the remaining 80% in stages over the construction period. This Progressive Payment Scheme means lower initial outlay – a boon if you’re still selling your HDB or gathering financing.

Choosing the Right Launch

New launches also come in many budgets and locations. From luxury city-center condos to practical OCR (Outside Central Region) projects, you can pick one that fits your finances and lifestyle. Developers often highlight features like eco-friendly design or smart-home integration, so you get the latest perks. If you’re a first-timer or investor, look out for entry-level new launches (e.g. 1-2 bedroom units) which can be more affordable, while HDB upgraders might eye larger units.

Step-by-Step: How to Buy a New Launch Condo

Buying property in Singapore – especially upgrading from an HDB or as a foreigner – has some unique steps. Here’s a general roadmap:

1. Check Eligibility & Budget: Make sure you qualify to buy. HDB owners must have served their 5-year Minimum Occupation Period (MOP) before selling. Foreigners (non-PR) can’t buy new HDB flats, only private condos or other approved properties. Also, calculate your budget: factor in the purchase price, Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD) if applicable, legal fees, agent commissions, and renovation costs. For example, foreign buyers now pay 60% ABSD on top of the price. Check loan eligibility – Singaporeans and PRs can borrow up to 75% of the price (with CPF and cash), while foreigners can also borrow up to 75% but must pay the cash portion in cash.
2. Sell or Secure Your Current Home (HDB Upgraders): If you’re upgrading from an HDB, decide whether to sell first or buy first. Many experts recommend selling after you’ve booked the condo, to avoid interim rent. Ensure your HDB sale meets all requirements: beyond the 5-year MOP, all mortgages must be repaid and any CPF used must be refunded (with interest) before completion. Register your HDB on the resale portal (and check EIP/PR quotas if needed). You’ll pay a small option fee (OTP) to a buyer, then process resale documents through HDB. This typically takes a couple of months from listing to completion.
3. Browse New Launches & Book a Unit: While your HDB is on the market, start visiting showflats of new launches that fit your criteria. Consider factors like location (mature estate vs growth area), developer reputation, unit mix and layout, and expected pricing. When you find a unit you like, book it by paying the first 5% as an option fee. The developer will give you an Option To Purchase (OTP) – sign and return this within 1–2 weeks to secure the unit. Remember, OP codes and balloting for popular projects might mean you need to act fast or participate in a launch lottery.
4. Secure Financing & Exercise OTP: Within the option period, finalize your financing. Apply for a home loan from a bank (foreigners must use banks) up to 75% loan-to-value. Singaporeans/PRs can use CPF up to the 75% LTV limit; foreigners pay 100% of their cash downpayment in cash. Once you have your Loan-in-Principle (LIP) or IPA, notify the developer and exercise the OTP (usually by paying the remaining 20% downpayment within a month).
5. Sign the Sales & Purchase Agreement: The developer will prepare the S&P, usually within 2 weeks of your OTP exercise. You’ll need to pay the Buyer’s Stamp Duty (BSD) and any ABSD by this point. Sign the S&P with your lawyer within 3 weeks of receiving it, and pay the remaining downpayment (up to 25% total, including what you’ve paid) within 8 weeks of OTP. After signing, you officially own the unit on paper, but don’t move in yet – the condo is likely still under construction.
6. Pay the Construction-stage Instalments: Over the next 3–4 years (the construction period), you’ll pay the rest of the purchase price in instalments tied to building progress. Commonly, it’s 10% at foundation, 10% at structural framework, another 10% at walling, and so on. These dates are on the Option and S&P. Keep track of them and pay on time to avoid penalties.
7. Collect Keys at TOP & Final Payment: Once construction completes, the project will get a Temporary Occupation Permit (TOP). At TOP, you usually pay the next instalment (often 25% of price) and can move in to occupy the unit. The final balance (usually 15%) is paid at legal completion (CSC). At that point, you take physical possession with keys and title deed.
8. Moving In & Enjoy: After TOP and CSC, you can start your renovation/moving process. Enjoy your new home! You’ll now fully own a brand-new condo. (If you sold your HDB, this is when you vacate it; if you plan to hold it for rental, now the 5-year blocking period begins.)

The above steps cover the general journey. The timeline can vary, but roughly it takes 6–12 weeks from booking to S&P, and 3–4 years to TOP. The table below summarizes the parallel tasks when selling an HDB versus buying a new condo:

Stage	Selling Your HDB (Upgrader)	Buying New Launch Condo
Preparation	Ensure 5-year MOP and loan/CPF clean-up	Set budget, check loan & CPF eligibility (up to 75% LTV; foreigners 75% loan)
Booking/Listing	Register HDB on resale portal; list flat, take viewings; grant OTP to buyer	Visit showflats; pay 5% booking fee to reserve unit and sign Option (OTP)
Agreements	Endorse resale documents online; HDB checks flat condition (~1–2 weeks)	Finalize bank loan; receive Sales & Purchase (S&P) from developer; sign S&P within ~8 weeks
Completion & Payment	Attend HDB completion (about 6–8 weeks after inspection) and receive sale proceeds	Pay 25% at TOP (when condo is ready for occupancy) and the final 15% at legal completion
Move-in	Vacate your HDB flat; hand over keys	Move into your new condo after TOP

Special Tips for HDB Upgraders

If you’re moving up from an HDB flat, here are some extra pointers:

• Meet the MOP and Defer Debt: Make sure your HDB has passed its 5-year MOP. You cannot sell before that. Also, clear or refinance any remaining mortgage and return CPF used on the flat (with accrued interest) before you sell. These amounts will come off your sale proceeds.
• Sell First or Buy First: Many upgraders grapple with whether to sell their HDB first or after booking a condo. A common strategy is buy first, sell after – this locks in your new home but requires bridging funds or a short-term loan (to cover downpayment) until your HDB sale completes. Make sure you budget for dual mortgages or a bridging loan, or consider applying for an HDB bridging loan if you have funds in CPF.
• Watch the Costs: Selling an HDB incurs agent commission (usually 1–2%) and possible Seller’s Stamp Duty (if the flat was bought under recent schemes and resold within 3-4 years). Buying the condo adds BSD, potential ABSD (if you or spouse already own another property), and legal fees. These can add tens of thousands in expenses, so set aside contingency.
• Engage a Good Agent: A savvy property agent can coordinate both transactions (selling your flat and buying the new condo), time the marketing and paperwork, and help negotiate prices. They often know which projects cater to upgraders and can advise on which projects have available units that fit your budget.
• Budget After-Sale Proceeds: Remember that the cash from selling your flat is partly locked in CPF and bank loans. Only the net cash (after refunds and loans) is available for the condo. Use a home loan calculator to adjust for your CPF refund and loan repayment. According to PropertyGuru, legal fees alone can be ~$2,500–$4,500 on each transaction, so keep those in mind.

Tips for Foreign Buyers

Foreigners (non-PRs) enjoy wide access to private housing in Singapore, but with extra costs and rules:

• Eligible Property Types: Foreigners can freely buy private condominiums and apartments (including units in new launches). You can also buy strata landed houses in approved condos or a property on Sentosa Cove. However, you cannot buy new HDB flats or most landed homes without special approval. If you really want a landed home, you’d need to seek permission from the Land Dealings Approval Unit and meet strict criteria (e.g. significant economic contribution). In practice, almost all foreigners just buy condos.
• Stamp Duty & Taxes: Non-resident foreigners face a 60% Additional Buyer’s Stamp Duty (ABSD) on any private property purchase as of 2023. This is a huge extra cost. (For comparison, Singapore citizens pay no ABSD on their first property, and PRs pay 0–15% on first purchase, but 60% is flat for foreigners.) For example, on a S$1 million condo, a foreigner pays S$600,000 in ABSD! Always calculate BSD+ABSD early. Fortunately, certain foreign nationals (e.g. US/Swiss/…) may get remission under FTAs, but generally plan on 60%.
• Financing: Foreign buyers can only take a bank loan (no HDB loan). You can borrow up to 75% of the property price. The remaining 25% downpayment must be in cash (no CPF allowed). Interest rates for foreigner loans are similar to locals (typically 2.5–3.5% in 2025). Make sure you have the full cash portion ready. Also, banks apply strict debt servicing rules (TDSR) – most require your monthly loan payments not exceed 55% of your income.
• Residency & Application: Buying a condo doesn’t grant you residency or citizenship. But as a foreigner, you must be at least 21 years old to buy property, and may need a long-term pass (e.g. Employment Pass) to live there. If you buy jointly with a Singapore spouse, your spouse can possibly get ABSD remission on their share. It’s wise to hire a local lawyer to help with the legal paperwork (the conveyancing process is the same for foreigners as for locals once you sign the S&P).

Tips for Young Investors and First-Time Buyers

If you’re a younger buyer (millennial or Gen Z) or first-timer, here are some pointers:

• Leverage Housing Grants (if on HDB path): If you’re young and able to qualify as a first-timer couple, consider taking advantage of HDB schemes first. For example, married couples can get an Enhanced CPF Housing Grant (up to S$120,000) on a new BTO or resale flat. Use this to build savings/CPF equity. After you serve the MOP, you could then upgrade to a new launch condo using the larger sale proceeds. Essentially, HDB schemes are like a kickstart that can later be traded up.
• Save Aggressively & Budget: New launches are expensive, so make sure you have a solid financial plan. Set aside at least a year’s worth of expenses in reserve before buying (banks often advise this). Factor in all costs: the high ABSD (if you’re not a citizen), renovation, and monthly mortgage within your budget. Stay under the TDSR by not borrowing beyond your means. Many young buyers start with smaller units (1–2 beds) to reduce quantum.
• Know the Loan Rules: Young buyers often rely heavily on loans and CPF. Remember: as a Singaporean or PR, you can use CPF Ordinary Account savings up to 75% LTV for a private condo. But if you use less than the maximum loan (say, you only borrow 60%), you can use CPF for up to the 75% of price. Plan your CPF usage carefully, since any CPF used on the condo cannot be used for anything else unless you resell or refinance later.
• Take a Long-Term View: Property is a long-term investment, especially at your stage. Time in the market matters. If you buy at age 28, even if prices dip a bit, you have decades to ride out cycles. Research neighborhoods with future growth (upcoming MRT lines, business hubs, universities) as these may yield better gains by the time you’re 35–40. Keep in mind the Singapore property market’s cooling measures and cyclical nature.
• Avoid Common Rookie Mistakes: Don’t be swayed just by glitzy brochures. Do your homework: check the developer’s track record, read the fine print on the Conditional Option to Purchase, and visit the site (even if it’s a plot) to verify access. Make sure you know when each installment is due – missing payments or deadlines can result in penalties or even loss of the unit. Also be wary of interest rate rises; lock in a fixed or stepped loan portion if you’re nervous about future hikes.

Financing, Eligibility & Common Pitfalls

Whether you’re an upgrader, foreigner or young investor, these considerations apply:

• Loan Limits: The MAS TDSR rule currently limits loan servicing to 55% of your gross income. Most banks cap home loans at 75% LTV for first timers (lower if you already own property). Use a mortgage calculator to estimate monthly payments and remain conservative.
• Stamp Duties: Know your stamp duties upfront. BSD is a progressive rate on purchase price (e.g. 1–4%), while ABSD as noted is 60% for foreigners. Singaporeans/PRs pay no ABSD on their first property but do pay on a second (20% for PRs, 12% for citizens as of 2025). Factor these into your budget – they’re paid in cash at S&P signing.
• CPF Usage: Only Singaporeans and PRs can use CPF OA for downpayment and monthly installments (after first $60k or after paying ABSD, if any). Foreigners must fund everything in cash. If you use CPF on your HDB, remember it will be refunded (with interest) when you sell, so plan for that gap.
• Minimum Purchase Age: You must be 21 or older to buy a private condo in Singapore. (For HDB, single Singaporeans can only buy resale at 35; separate rule.)
• Don’t Skip Due Diligence: Mistake to avoid: not reading the S&P or option terms carefully. Watch out for unusual clauses (e.g. delayed TOP, penalties for breaching CPF commitments). Attend the preview and request to see sample contracts.

Common Mistakes to Avoid

• Forgetting the MOP or Grant Conditions: HDB upgraders often forget they must fulfill the 5-year MOP and resale rules. Likewise, some first-timer couples may overlook grant repayment conditions on HDBs. Always verify eligibility rules before committing.
• Underestimating Costs: Many buyers look at headline prices but forget tens of thousands in fees: stamp duties (BSD+ABSD), buyer’s legal fees (~$1,500–$2,000), HDB resale fees (~$800), agent commissions, renovation, etc. Build a buffer of at least 5–10% of the price for these.
• Rushing Without Research: Avoid falling for hype. Check recent transactions in the same area, compare with resale prices nearby, and learn about upcoming developments (new MRT, schools). Don’t rush a booking just because you “heard it’ll appreciate” – do the math.
• Ignoring Financing Risks: Don’t stretch to the absolute LTV limit if it leaves you cash-strapped monthly. Interest rates could rise. Keep some breathing room in your budget. It’s safer to overestimate loan rates in your plan.
• Selling HDB Too Late: Coordinate your sale and purchase timing. If you delay selling your HDB too long, you could face cash crunch on condo payment deadlines, or lose leverage if market dips. Likewise, don’t sell too early without securing your condo unit.

All said, buying a new launch can be an exciting upgrade. New projects in Singapore often sell fast, so move quickly once you’ve done your homework. Be methodical: check your eligibility, budget in all costs, and follow the steps above closely.