Progressive Payment Scheme (PPS) is the legally-mandated payment structure for every new launch private condo in Singapore — buyers pay in stages tied to construction milestones, starting with a 5% booking fee. The Deferred Payment Scheme (DPS) survives only for Executive Condominiums, typically priced 2–3% higher to compensate developers for the delayed cash flow (as of 2026-05).
For anyone buying a new launch condo or Executive Condominium in Singapore, the payment scheme is one of the most consequential — and often misunderstood — parts of the transaction. Unlike resale, where you pay essentially everything by completion, new launches stretch the cash outlay over the construction period. That means cash-flow planning, bridging-loan calculations, and CPF utilisation all need to be sequenced against the construction calendar.
The Progressive Payment Scheme is the standard, and for private condominiums it is the only option. Deferred Payment is a separate scheme that is only available for selected Executive Condominium launches.
The Monetary Authority of Singapore's Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) caps continue to govern how much can be financed at each PPS stage (as of 2026-05). PropertyGuru's 2026 condo payment guide confirms that DPS is no longer available for standard uncompleted private residential properties — only Executive Condominiums retain a DPS option, and developer pricing typically reflects a 2–3% premium for the deferred cash flow.
What Does It Mean?
Progressive Payment Scheme
The Progressive Payment Scheme is the standard payment method for new launch properties in Singapore. Buyers pay in stages as construction reaches milestones: 10% at booking, 10% at foundation, 10% at reinforced concrete, and so on until completion.
Deferred Payment Scheme (DPS)
The Deferred Payment Scheme (DPS) allows buyers to pay a smaller upfront amount (typically 20%) and defer the remaining balance until TOP. DPS usually costs 2-3% more than the list price to compensate the developer for the deferred cash flow.
Key Differences
| Aspect | Progressive Payment | Deferred Payment |
|---|---|---|
| Upfront cost | ~20% by foundation stage | ~20% at booking |
| Balance payment | Staged over construction | Bulk at TOP |
| Price premium | Standard price | 2-3% higher price |
| Interest during construction | Starts early (on drawdowns) | Minimal until TOP |
| Best for | Most buyers | Investors timing cash flow |
Worked Example
Progressive payment milestones for a $1,500,000 new launch condo:
| Stage | % Due | Amount |
|---|---|---|
| Booking fee | 5% | $75,000 |
| Exercise OTP (8 weeks) | 15% | $225,000 |
| Foundation | 10% | $150,000 |
| Reinforced concrete | 10% | $150,000 |
| Partition walls | 5% | $75,000 |
| Roofing | 5% | $75,000 |
| Car park / roads | 5% | $75,000 |
| TOP | 25% | $375,000 |
| CSC | 15% | $225,000 |
| Final account | 5% | $75,000 |
Where to Find This on ShiokNest
- Progressive Payment Calculator
- New Launch Purchase Checklist
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This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of May 2026. Check official sources for the latest.
Worked example: PPS stages on a S$1,500,000 new launch condo.
| Stage | % of price | Amount (S$) | Trigger |
|---|---|---|---|
| Booking fee | 5% | 75,000 | Option to Purchase issued (cash + CPF eligible) |
| Sign S&P | 15% | 225,000 | Within 8 weeks of OTP |
| Foundation completed | 10% | 150,000 | ~6–9 months after launch |
| Reinforced concrete framework | 10% | 150,000 | ~12–18 months |
| Partition walls | 5% | 75,000 | ~18–24 months |
| Ceiling, roofing, plastering | 5% | 75,000 | ~24–30 months |
| Electrical, plumbing, finishes | 5% | 75,000 | ~30–36 months |
| Car parks, drains, roads | 5% | 75,000 | ~36–42 months |
| TOP (Temporary Occupation Permit) | 25% | 375,000 | Keys handover |
| CSC (Certificate of Statutory Completion) | 15% | 225,000 | ~12 months after TOP |
For an EC under the Deferred Payment Scheme, the structure compresses to 20% upfront (5% cash booking + 15% cash/CPF on S&P), then a single 65% payment at TOP, with the final 15% at CSC — see SingaporeEC's 2026 EC payment scheme breakdown. The trade-off: developers price DPS units 2–3% higher than the equivalent normal-payment unit.
- Map your CPF balance to the early stages. CPF Ordinary Account funds can be used from the booking-fee stage; up-front liquidity matters most in the first 20% of payments.
- Lock in your loan at S&P stage. Most banks issue letters of offer once the S&P is signed; comparing rates from at least three banks is standard practice.
- Plan for stretches of zero cash drag mid-construction. Between the 30% mark and TOP, your only cash outflow is the monthly loan instalment based on what you've drawn so far — typically a fraction of the eventual full instalment.
- For EC DPS buyers, model the trade-off between the 2–3% price premium and the time value of not paying the 65% until TOP. For most buyers, the premium outweighs the benefit unless construction is unusually long or interest rates spike.
Frequently Asked Questions
Can I use CPF for the 5% booking fee?
Yes — CPF Ordinary Account funds can be used for the booking fee on private condominiums, subject to your CPF balance and the property's value-based withdrawal limits.
What happens if I default mid-construction?
You forfeit the booking fee (5%) and may be liable for the developer's resale loss if the unit ultimately sells for less. This is why most banks issue full-loan letters of offer only after S&P signing.
Is Deferred Payment available for any private condo?
No. Since the global financial crisis, DPS was withdrawn for private condominiums. Only Executive Condominiums (which have HDB-style ownership rules) retain a DPS option, and only at the developer's discretion.
How long does a typical new launch construction take?
From launch to TOP is typically 3–4 years for a mid-sized condo and 4–5 years for very large or complex projects. CSC follows ~12 months after TOP.
Do I pay interest on the bank loan before TOP?
Yes — most banks charge interest from the date of first disbursement (usually at the foundation stage). However, the disbursed amount grows progressively, so your instalments start small and only reach full size after TOP.
Can I refinance my loan during construction?
Generally not — most banks require completion of the property before they'll accept a refinance application. Plan for the rate you sign at S&P to apply through to TOP.