Why new launches are paid in stages
When you buy an uncompleted condo such as One Chuan Grove, the building does not exist yet. Singapore's Housing Developers Rules therefore require the purchase price to be paid in stages that match construction progress. This is called the Normal Progressive Payment Scheme. It protects buyers, because you pay for what has been built, and it eases your cash flow, because your loan is drawn down gradually over two to four years.
The payment stages
| Stage | % of price | Cumulative | Paid by |
|---|---|---|---|
| Option to Purchase (booking fee) | 5% | 5% | Cash |
| Sale and Purchase Agreement signed (within 8 weeks of OTP) | 15% | 20% | Cash / CPF |
| Foundation work completed | 10% | 30% | CPF / loan |
| Reinforced concrete framework completed | 10% | 40% | CPF / loan |
| Partition walls completed | 5% | 45% | CPF / loan |
| Roofing / ceiling completed | 5% | 50% | CPF / loan |
| Door sub-frames, windows, wiring, plumbing completed | 5% | 55% | CPF / loan |
| Car park, roads and drains completed | 5% | 60% | CPF / loan |
| Temporary Occupation Permit (TOP) | 25% | 85% | CPF / loan |
| Certificate of Statutory Completion (CSC) | 15% | 100% | CPF / loan |
For a first housing loan at 75% LTV, at least 5% of the price must be paid in cash. The rest of the 25% down payment can come from cash or CPF Ordinary Account savings.
Worked example: a S$2 million unit
Suppose a Singapore Citizen couple buys their first home at One Chuan Grove for an illustrative S$2,000,000, with a 75% bank loan of S$1,500,000.
| Stage | Amount | Paid from |
|---|---|---|
| Booking (5%) | S$100,000 | Cash |
| S&P (15%) | S$300,000 | Cash and/or CPF |
| Buyer's Stamp Duty | S$69,600 | Within 14 days of S&P |
| Foundation (10%) | S$200,000 | Remaining 5% down payment (S$100,000) from cash/CPF, then S$100,000 from the loan |
| Framework (10%) | S$200,000 | Loan |
| Walls, ceiling, fittings, car park (5% each) | S$400,000 in total | Loan |
| TOP (25%) | S$500,000 | Loan |
| CSC (15%) | S$300,000 | Loan |
In this example, the couple needs about S$469,600 before construction starts: the 20% down payment and the BSD. Their loan is then drawn in steps. After the foundation stage, they are servicing only about S$100,000 of loan; after the framework, about S$300,000; and the full S$1.5 million only after CSC. This is an illustration only; your actual figures depend on your loan, CPF and the developer's payment schedule.
How long does each stage take?
For a project of One Chuan Grove's size, construction typically takes about three to four years from the start of site works. The foundation stage often comes within the first year, the structural framework over the following one to two years, and the finishing stages close to TOP. The developer's lawyer notifies you at each stage, and you usually have 14 days to pay each instalment once it is billed.
Planning your cash flow
For first-time buyers
The heaviest cash requirement is at the start: the 20% down payment and stamp duty within about two months of booking. After that, monthly instalments start small and increase. Use this period to build savings and to plan for renovation and furniture at TOP.
For HDB upgraders
Many upgraders use the construction period to stay in their flat and sell it closer to completion. If you are paying ABSD on the condo as a second property and plan to claim the refund, the flat must be sold within six months of the condo's TOP or CSC, whichever is earlier. Plan your sale timeline carefully. See our HDB upgrader guide.
For investors
A new launch generates no rental income until TOP, while you are paying interest on the growing loan. Budget for this period, and for vacancy and furnishing costs once the unit is ready.
Protections for buyers
- Project account: your payments go into a project account under the Housing Developers Rules, and the developer can only withdraw money for the project's costs.
- Architect's certificates: each stage is certified before you are billed.
- Standard S&P: the Sale and Purchase Agreement follows a prescribed form, with set terms on completion dates and late-delivery compensation.
- Defects liability: the developer must rectify defects reported within 12 months of vacant possession.
Want a personal payment schedule for a One Chuan Grove unit? Contact us and we will prepare one using your budget and loan details. See also our new launch buying guide.
Frequently Asked Questions
What is the Normal Progressive Payment Scheme?
It is the standard way uncompleted private homes are paid for in Singapore. Buyers pay 20% upfront and the remaining 80% in stages as construction milestones are reached, as set out in the Housing Developers Rules.
When do I start paying the bank loan?
The bank disburses the loan at each construction stage after your cash and CPF down payment is used up. You start paying interest and principal on the amount disbursed, so instalments rise over time.
Is the Deferred Payment Scheme available?
No. The Deferred Payment Scheme for private properties was withdrawn in 2013. New launches are sold under the Normal Progressive Payment Scheme.
Where does my money go during construction?
Payments go into a project account supervised under the Housing Developers Rules, and withdrawals are only allowed for the project's costs. This gives buyers a layer of protection.