When do I need to sell my HDB if I buy a new launch condo?

Under MAS guidelines, you must sell your HDB flat within 6 months of taking possession of a private residential property -- which means within 6 months of the new launch's TOP. Most buyers sell their HDB closer to the 4–5 year mark of construction (near TOP) to avoid extended transitional housing costs. Start marketing your HDB 6–12 months before estimated TOP.

Can I use CPF to pay new launch progressive payments?

Yes -- CPF OA can be used for all stages of progressive payment except the initial 5% booking fee (which must be cash). However, the CPF withdrawal for each stage is only released when the corresponding construction milestone is certified and the developer submits a draw-down request. Plan for a 2–4 week lag between milestone certification and CPF release.

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New Launch Progressive Payment Scheme: What You Pay and When

By Winfred Quek · CEA R073319H · 9-minute read · Last reviewed May 2026

Quick answer: Singapore's Progressive Payment Scheme (PPS) spreads new launch condo payments across 10 construction milestones over 3–5 years. The first 5% is cash-only at booking. From there, each milestone triggers a payment drawn from your CPF OA and/or cash. HDB upgraders must plan the HDB sale to fall within 6 months of the new launch's TOP. Start marketing your HDB 6–12 months before estimated TOP date.

Facts verified: May 2026 · Sources linked below

The Progressive Payment Scheme is the standard payment structure for all new launch private condominiums in Singapore. Unlike resale properties where you pay the full price at completion new launch buyers pay in tranches as construction progresses. Each milestone triggers a payment obligation, funded from a combination of cash, CPF OA, and (later) the bank mortgage drawdown.

Understanding the PPS timeline is critical for two groups: HDB upgraders who need to time their flat sale around the new launch's TOP, and buyers who need to manage cash flow across a 3–5 year construction window. Poor PPS planning is one of the most common and most avoidable financial stresses in Singapore property.

The Standard PPS Milestones

The Housing Developers (Control and Licensing) Act prescribes the payment schedule for all new launch condos. The standard milestones and their payment percentages:

Milestone	% of Purchase Price	Amount ($1.5M condo)	When	CPF Eligible?
Booking fee (OTP)	5%	$75,000	Within 5 weeks of OTP	No cash only
Sign S&P Agreement	15% (less booking fee = 10%)	$150,000 total (pay $75K now)	Within 8 weeks of OTP	Yes (the 10% portion)
Foundation complete	10%	$150,000	~Year 1–1.5	Yes
Concrete framework complete	10%	$150,000	~Year 1.5–2	Yes
Partition walls complete	5%	$75,000	~Year 2–2.5	Yes
Roofing complete	5%	$75,000	~Year 2.5–3	Yes
Car park, drains & roads	5%	$75,000	~Year 3	Yes
TOP (Temporary Occupation Permit)	25%	$375,000	~Year 3–5	Yes
CSC (Certificate of Statutory Completion)	15%	$225,000	6–12 months after TOP	Yes

Timing estimates are indicative. Construction timelines vary by project and developer. Booking fee and first S&P instalment together constitute the 20% downpayment (5% cash + 15% cash/CPF). The bank mortgage begins drawdown from the foundation stage onwards.

How the Bank Mortgage Fits Into PPS

For the stages after the initial 20% downpayment (booking fee + S&P signing), the bank progressively draws down your approved loan to fund each milestone payment. This means:

You do not need to keep the full loan amount in cash the bank pays the developer at each milestone on your behalf.
Interest accrues on the drawn-down loan amount from each drawdown date. During construction, you are charged interest-only on the drawn amount not the full loan. This is called the "progressive interest" period.
Full loan repayment (principal + interest) begins at TOP, when the loan is fully drawn.

Interest during construction adds up: For a $1.125M bank loan on a $1.5M condo (75% LTV), interest during 3–4 years of progressive drawdown accumulates. At 1.5% annual rate, you may pay $30,000–$60,000 in construction-period interest before a single cent of principal is repaid. Model this into your total cost of ownership it is not visible in the headline purchase price.

HDB Upgrader PPS Timeline: The Critical Sequencing Problem

HDB upgraders face a unique challenge: they must sell their HDB flat within 6 months of taking possession of the new launch (i.e., within 6 months of TOP). If the new launch is delayed which is common, by 3–18 months in some cases the 6-month clock still starts at the actual TOP date, giving you some buffer. But the planning must be proactive.

Year 0 (Launch): Book the new launch. Pay 5% booking fee in cash. Sign S&P within 8 weeks. Pay 20% total (5% cash + 15% cash/CPF).

Years 1–3 (Construction): Progressive bank drawdowns at each milestone. Pay construction-period interest only. No need to service full mortgage yet. Keep HDB you are still eligible to own both during construction.

Year 3–4 (Approaching TOP): 6–12 months before estimated TOP, engage an agent to list your HDB for sale. Price to achieve exchange within 4–5 months. Target completion of HDB sale around or just after new launch TOP.

TOP + 6 months (Deadline): HDB must be sold and fully transferred. If HDB is not sold within 6 months of new launch possession, you are in breach of HDB rules and may face penalties.

Post-HDB sale: CPF OA funds refunded (principal + accrued interest). Use refunded CPF to pay down new launch loan or fund remaining milestone payments (TOP and CSC tranches).

Cash Flow Planning: What to Hold in Liquid Reserves

Before committing to a new launch, map out your cash position across the PPS timeline. Key items to pre-fund:

5% booking fee: Must be cash. Ensure this is liquid before launch day.
10% S&P balance (if not fully covered by CPF OA): Check your CPF OA balance now. If insufficient, you need cash to make up the shortfall.
BSD (Buyer's Stamp Duty): Payable within 14 days of signing S&P. On a $1.5M condo: first $180K at 1% = $1,800; next $180K at 2% = $3,600; next $640K at 3% = $19,200; remainder at 4% = $20,000. Total BSD = $44,600. Can be paid from CPF OA.
Legal fees: Typically $2,000–$5,000 for a new launch purchase. Cash or CPF.
Construction-period interest: Set aside monthly reserves for the progressive interest payments during construction. Estimate 1–1.5% per year on the progressive loan balance.
Interim housing costs: If you sell your HDB before TOP, you need to rent somewhere during the remaining construction period. Budget $2,500–$4,000/month for an interim rental.

Common Mistakes in PPS Planning

Assuming CPF will cover everything from stage 2 onwards: CPF OA drawdowns are released by the CPF Board only after the developer submits certified milestone completion. There is a 2–4 week processing lag. You may need to front cash and receive CPF reimbursement not the other way around.
Not accounting for BSD in the initial cash outlay: Many buyers are caught short at S&P signing because BSD ($44,600 on a $1.5M condo) is due within 14 days, and CPF processing may not be fast enough. Keep BSD amount in a liquid bank account.
Selling HDB too early: Selling 2–3 years before TOP means paying private rental for 2–3 years unnecessarily. Wait until 6–12 months before estimated TOP unless your financial situation requires early exit from the HDB.
Not building in a TOP delay buffer: New launches routinely TOP 6–12 months later than originally advertised. If you have sold your HDB based on the developer's original TOP estimate and the project delays, you may find yourself in a rental property longer than expected. Always build a 12-month buffer in your financial model.