Buying a new-launch private property means committing at today's price and paying in stages as the building rises — a structure called the Progressive Payment Scheme. Before you sign, model the full acquisition cost (including stamp duties due upfront), map out each progressive loan draw, calculate interest-during-construction with zero rental income, and stress-test the exit against a completed resale alternative. (as of 2026-06)
Singapore's new-launch private market asks buyers to commit years before they collect keys. You pay a booking fee, sign a Sale and Purchase Agreement, then watch your loan disburse tranche by tranche as construction milestones are hit — a process that typically spans three to four years from launch to Temporary Occupation Permit (TOP). During every one of those months you carry real holding costs and zero rental income. Done with clear eyes and a full financial model, an under-construction purchase can offer brand-new quality, potential early-bird pricing, and meaningful cash-flow relief during the build phase. Done without one, the same deal can quietly drain liquidity and surprise a buyer at TOP. This guide walks through every number you need — from the first 5% on Option to Purchase right through to the final 5% at legal completion — so you can make the decision with full visibility. (as of 2026-06)
What an under-construction purchase actually is
An uncompleted private residential property — commonly called a Building Under Construction (BUC) unit — is sold off-plan by a licensed developer before the project receives its TOP. You enter a legally binding Sale and Purchase Agreement (S&P) at a fixed price, but physical possession comes only when the building is certified safe to occupy, typically three to four years after the initial launch. The developer is required under the Housing Developers (Control and Licensing) Act to place all purchase proceeds into a project account controlled by a bank or financial institution, so buyer funds are ring-fenced against developer insolvency — a statutory protection that materially reduces delivery risk compared with unregulated off-plan markets overseas.
The transaction has two legal milestones. TOP (Temporary Occupation Permit) is issued by the Building and Construction Authority once the structure is safe to occupy; you receive your keys at this point and your tenancy rights begin. CSC (Certificate of Statutory Completion) follows weeks to months later once all ancillary works and certifications are finalised; the remaining 5% of the purchase price is released then. You can check current new-launch supply and project pipelines via the URA Real Estate Information System (REALIS) and browse live launch data on the new launches map.
Why the progressive payment structure changes the cash-flow profile
The key difference between buying off-plan and buying a completed resale unit is when your full loan is drawn. On a resale purchase, the bank disburses the entire loan on legal completion — from that day forward you pay interest and principal on the full outstanding balance. On a BUC purchase, the bank disburses the loan in tranches that match the construction milestones in your S&P. For the first 12-18 months you may have drawn only 10-20% of the loan, meaning your monthly debt-servicing obligation is a fraction of what it will be at TOP. This is the headline cash-flow advantage that new launches are marketed on — and it is real, but it must be weighed against the equally real negative carry of holding a non-income-producing asset for the entire construction period. Use the progressive payment calculator to map your specific draw schedule against your cash-flow timeline. (as of 2026-06)
New launch condos are exciting: showflat visits, early-bird discounts, brand-new everything. But they come with a financial catch that many buyers overlook. During the 2-3 year construction period, you are paying mortgage interest on progressively drawn-down amounts while earning zero rental income. How much does this "dead money" period actually cost you?
This calculator models the entire new launch timeline — from booking fee to TOP to first rental cheque — so you can compare the true cost of a BUC (Building Under Construction) property against a resale unit that generates income from Day 1.
What This Calculator Does
Buying a new launch condo? Understand progressive payment schedules, interest costs during construction, and your true total outlay before TOP. Model the full timeline from booking fee to rental income, including the hidden cost of paying interest with zero rental income during the 2-3 year build period.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.
Why This Matters
New launch condos are marketed with beautiful showflats and attractive early-bird pricing, but the financial reality is more complex. The construction period creates a unique cash flow pattern that is fundamentally different from resale purchases. This calculator matters because:
- Interest during construction is "dead money" — you pay it but earn nothing
- Progressive payment schedules mean your monthly outlay varies throughout construction
- Comparing new launch vs resale requires modelling the construction gap
What You Will Discover
After running this calculator with your personal numbers, you will know:
- Progressive payment timeline and amounts at each construction milestone
- Total interest cost during the construction "dead money" period
- When rental income starts and your cash flow turns positive
- Full comparison of new launch vs resale financial outcomes
Key Inputs Explained
Here are the inputs you will configure, along with their default values. Each default is calibrated to a realistic Singapore condo scenario so you can explore results immediately.
| Field | Description | Default Value |
|---|---|---|
| Purchase Price | The total property price before additional costs. | $1,800,000 |
| Down Payment (%) | Your cash/CPF contribution as % of price. | 25.0% |
| Interest Rate (%) | Annual loan interest rate. | 3.5% |
| Loan Tenure (Years) | Duration of the mortgage loan. | 25 years |
| Construction Period (months) | Time from purchase to TOP. | 36 months |
| Monthly Rent | Expected monthly rental income or rent you would pay. | $4,000 |
| Buyer Profile | Your residency status (SC/PR/Foreigner). | SC 1st |
| Annual Appreciation (%) | Expected yearly increase in property value. | 3.0% |
Step-by-Step Guide
- 🏠 Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 26 calculators are grouped by purpose for easy access.
- 🔍 Select the calculator — Choose "How to Analyse Under Construction Investments" from the calculator list. You will see default values already loaded so you can explore immediately.
- ✏️ Enter your values — Replace the defaults with your own numbers. The key fields are:
- Purchase Price — The total property price before additional costs.
- Down Payment (%) — Your cash/CPF contribution as % of price.
- Interest Rate (%) — Annual loan interest rate.
- Loan Tenure (Years) — Duration of the mortgage loan.
- Construction Period (months) — Time from purchase to TOP.
- Plus 3 more fields for fine-tuning your scenario.
- 📊 Review the results — The calculator updates instantly as you change any input. KPI cards show your down payment, construction timeline, estimated interest during construction, and post-TOP rental income.
- 🔄 Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
- 💾 Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Worked Example
Meet Li Wei, buying a $1,800,000 new launch condo in Tengah with a 36-month construction timeline. Unlike a resale purchase, he will not pay the full price upfront — instead, payments are drawn down progressively as construction milestones are hit.
The hidden cost of new launches: During the 36-month build period, Li Wei pays interest on the progressively drawn-down loan amount but earns zero rental income. This "dead money" period costs approximately $70,875 in interest alone. Many new launch buyers overlook this cost when comparing against resale properties that generate rent from Day 1.
Progressive payment schedule: Typically 20% at booking, then staged payments at foundation (10%), reinforced concrete (10%), brick walls (5%), ceiling/roofing (5%), and so on until TOP. The calculator models this entire timeline and shows your actual cash outflow month by month.
Real-World Scenarios to Try
Here are some realistic scenarios you can plug into the calculator right now. Each one reflects a common situation Singapore property buyers face.
| Scenario | Settings to Try | What You Will Learn |
|---|---|---|
| Standard new launch | $1.8M, 36-month build, Rent: $4K | Typical cost profile for a new launch purchase in the current market |
| Long construction period | $1.8M, 48-month build, Rent: $4K | How a delayed project increases your total interest burden |
| Premium new launch | $2.5M, 30-month build, Rent: $6K | Whether higher-end new launches recover construction costs faster through higher rent |
Expert Tips and Common Pitfalls
💡 Pro Tips
- Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
- Add 6-12 months buffer — Construction delays are common. Budget for extra months of interest payments with no rental income.
- Compare against resale — A resale condo generates rent from Day 1 and has no construction risk. Use the Side-by-Side calculator to quantify the difference.
- Check defect liability period — After TOP, you typically have 1 year to report defects. Inspect thoroughly before the period expires.
⚠️ Common Pitfalls
- Underestimating construction interest — Interest accrues from day one on drawn-down amounts. Over 36 months, this adds up to tens of thousands.
- Developer price premium — New launches typically sell at 10-20% premium over comparable resale units. Factor this into your appreciation assumptions.
🤔 What-If Scenarios to Explore
Get the most value from this calculator by testing these scenarios:
- What if construction is delayed by 12 months? How much extra interest do you pay?
- What if the property appreciates 15% by TOP — what is your paper gain vs total cost?
- Run at least 3 scenarios — best case, base case, and worst case — to understand the full range of outcomes.
Related Calculators
Your property journey involves many interconnected decisions. These calculators work hand-in-hand with this one:
- How to Use the End-to-End Investment Calculator
- How to Calculate stamp duty (IRAS BSD ratesBSD + ABSD)
- How to Use the mortgage calculator
Ready to Crunch Your Numbers?
Enter the purchase price, construction period, and loan details. See the full timeline of payments and costs, including the often-overlooked interest during the build period.
Official Sources
This how-to guide is auto-generated using ShiokNest's calculator defaults. All worked examples use default values — adjust inputs to match your personal scenario for accurate results.
The Progressive Payment Scheme: milestones, percentages, and a worked example
The standard PPS schedule under the Housing Developers Rules is defined as a percentage of the purchase price payable at each construction stage. The table below reflects the typical schedule (as of 2026-06) — always confirm against your actual S&P, as developers sometimes vary the staging within permitted limits:
Standard BUC Progressive Payment Schedule (as of 2026-06)
Upon signing Option to Purchase (OTP): 5% (booking fee, paid in cash, not from CPF or loan)
Upon exercising OTP and signing S&P (within 3 weeks): a further 15% — bringing total to 20% (part can be CPF, balance from loan draw 1)
Foundation completed: 10%
Reinforced concrete framework completed: 10%
Brick walls completed: 5%
Roofing / ceiling completed: 5%
Doors, windows, electrical wiring, internal plastering: 5%
Car parks, roads, drains: 5%
TOP (keys handover): 25%
CSC / legal completion: 5%
Total: 90% paid to TOP + 5% at CSC = 95% developer proceeds; 5% held in escrow until CSC.
Worked example — $1.5 million unit (as of 2026-06): Assume 75% LTV loan ($1.125M) and 25% cash/CPF equity ($375K). Buyer's Stamp Duty on $1.5M is approximately $44,600 (3% on first $1M, 4% on next $500K; verify the current slab rates at the IRAS Buyer's Stamp Duty page). If this is a second property, ABSD of 20% for a Singapore Citizen applies, adding $300,000 — payable within 14 days of OTP exercise, not deferred to TOP (check current rates at IRAS Additional Buyer's Stamp Duty). The 5% booking fee is $75,000 in cash on day one.
For the loan, assume a blended construction-phase interest rate of 3.8% p.a. (as of 2026-06; rates fluctuate — model your own at the mortgage calculator). After foundation (loan draw ~10% = $112,500), monthly interest is approximately $356. After reinforced concrete framework (cumulative draw ~20% = $225,000), monthly interest rises to ~$713. By TOP the full $1.125M is drawn and monthly instalment (principal + interest, 25-year tenure) is approximately $5,820. Total interest-during-construction over an assumed 36-month build is estimated at $40,000–$55,000 depending on milestone timing — a holding cost with no offsetting rent. Run your exact figures through the under-construction investment calculator and total cost of ownership calculator before committing.
For a full market-timing perspective, browse the price heatmap to compare district-level PSF trends and assess whether entry pricing at launch is competitive against the resale market at time of purchase. Cross-check against district transaction histories at District 9 or any other target district to see historical price trajectories.
Step by step
- Calculate your total upfront cash requirement before signing. Add: (a) 5% booking fee (cash only, no CPF/loan), (b) Buyer's Stamp Duty payable within 14 days of OTP, and (c) ABSD if applicable, also due within 14 days of OTP. For a $1.5M unit with ABSD, you may need over $400,000 in accessible liquid cash before exercising the option — money that cannot be in equities or CPF OA without a transfer lead time. Confirm current BSD and ABSD rates with IRAS before proceeding.
- Confirm your loan eligibility under MAS TDSR rules. The Monetary Authority of Singapore TDSR framework caps total monthly debt obligations at 55% of gross monthly income, stressed at a medium-term rate. Obtain an In-Principle Approval (IPA) from your bank before exercising the OTP — not after. The IPA should be stress-tested at the bank's stressed rate, not the promotional rate. The full loan size is approved at signing even though it disburses in tranches.
- Build a month-by-month progressive payment and interest model. Map each S&P milestone to an estimated calendar month based on the developer's projected construction timeline. For each tranche, compute cumulative loan drawn, monthly interest at the prevailing rate, and remaining cash/CPF equity deployed. Use the progressive payment schedule calculator to automate this. The output tells you your worst-case monthly cash outflow at each stage and the total interest-during-construction before any principal repayment begins.
- Model the full negative carry from signing to TOP. Aggregate all interest-during-construction, property tax (from TOP), maintenance fee (from TOP), and any additional holding costs. Subtract zero rental income — you cannot rent an uncompleted unit. This negative carry figure is your real cost of the construction wait and should be added to your acquisition cost when computing breakeven price and yield at TOP. Compare the result against an equivalent completed unit where you could earn rent from day one but carry the full loan immediately.
- Stress-test the exit under three market scenarios. Model TOP-date capital values at: (a) flat prices vs purchase, (b) +10% appreciation, and (c) -10% correction. For each scenario, compute net proceeds after Seller's Stamp Duty — note SSD applies on a sliding scale if you sell within three years of purchase, regardless of whether the unit is occupied (check current SSD rates at IRAS Seller's Stamp Duty). Use the total cost calculator and ROI calculator to derive annualised returns in each scenario. Only proceed if you can absorb the downside scenario without being forced to sell.
- Compare directly against a completed resale equivalent. Identify a comparable completed unit in the same or adjacent district. Compare: total acquisition cost (both have same BSD/ABSD), but resale starts generating rent immediately while new-launch carries construction interest. Calculate the rental income forgone during the build period as an opportunity cost. Factor in condition premium (new vs older), remaining lease (freehold vs leasehold decay), and any developer incentive packages (furniture vouchers, stamp duty absorption) offered on the new launch. The side-by-side comparison tool can help frame the trade-offs across multiple properties.
- Verify developer credentials and project account arrangements. Confirm the developer holds a valid Housing Developer's Licence from the Controller of Housing. Ask the sales team for the name of the project account bank and confirm all progress payments are made to that account — never to the developer's own operating account. Review the S&P with a conveyancing lawyer before exercising the OTP; lawyer fees are a minor cost against the protection they provide on a multi-hundred-thousand-dollar commitment.
Frequently asked questions
Do I pay stamp duty on the full purchase price even though I won't collect keys for three years?
Yes. Buyer's Stamp Duty (BSD) and any Additional Buyer's Stamp Duty (ABSD) are computed on the purchase price stated in the S&P and are payable within 14 days of OTP exercise — not deferred to TOP or CSC. This is a critical liquidity requirement: for a $1.5M second property, the combined BSD and ABSD for a Singapore Citizen can exceed $340,000 in cash due before the building has even broken ground (as of 2026-06). Always confirm current slab rates on the IRAS website before committing, as rates are subject to government policy changes.
How does the bank disburse the loan during construction, and do I pay the full monthly instalment straight away?
No — you pay interest only on the amount the bank has disbursed so far. Each time a construction milestone is certified, your conveyancing lawyer submits a drawdown request and the bank releases the corresponding tranche directly to the developer's project account. In the early months, only a small fraction of the total loan is outstanding, so your monthly interest charge is modest. The full principal-and-interest instalment begins only once the entire loan is drawn, typically at or shortly after TOP. This staged disbursement is the core cash-flow advantage of the Progressive Payment Scheme compared with a completed resale purchase, where the full loan is drawn on legal completion day one (as of 2026-06).
What happens if construction is delayed and TOP is pushed back by a year or more?
Delays extend your negative carry period — you continue paying interest on drawn tranches with no rental income for longer than modelled. Under the Housing Developers Rules, if the developer fails to deliver vacant possession by the contractual deadline, you are entitled to liquidated damages (LD) calculated at 8% p.a. of the purchase price for each day of delay. In practice, most delays fall within permitted extension periods; severe delays are rare given the project account ring-fencing regime. Build a buffer of at least six months into your financial model and ensure your cash reserves can sustain the extended interest-during-construction before committing (as of 2026-06).
Can I rent out the unit during construction to offset holding costs?
No. An uncompleted unit cannot be occupied or sub-let — there is no legal basis to grant a tenancy before TOP is issued by the BCA. This means 100% of your holding costs from signing to TOP (interest-during-construction, any insurance, conveyancing fees) are pure cash outflow with no offsetting income. This negative carry is the single most underestimated cost for first-time new-launch buyers. Model it explicitly in your cash-flow projection using a conservative construction timeline of 36-42 months, and compare it against the rental income you could earn over the same period if you instead bought a completed resale unit (as of 2026-06).
Is Seller's Stamp Duty applicable if I flip the unit shortly after TOP?
Yes. SSD is triggered if you dispose of a residential property within three years of the date of purchase — which is the date you exercised the OTP, not the TOP date. This means a unit bought at launch in 2023 and collecting TOP in 2026 still carries SSD liability if sold in 2026, because fewer than three years have elapsed since the OTP exercise. The SSD rate is 12% in year one, 8% in year two, and 4% in year three of holding, applied on the higher of sale price or market value (as of 2026-06). Factor SSD into all exit scenarios where the holding period from OTP exercise to eventual sale is under three years, as it can significantly erode capital gains on a short flip.