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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

Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.

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 to 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:

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.

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 to 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.

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 to $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 to 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 to $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 to 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 to 3 years before TOP means paying private rental for 2 to 3 years unnecessarily. Wait until 6 to 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 to 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.

Related reading

• Option to Purchase (OTP): The Complete 2026 Guide
• CPF OA vs Cash for Downpayment: Which is Better?
• HDB After MOP: Rent Out or Sell and Upgrade?

Winfred Quek (CEA R073319H) is an Associate Marketing Consultant with Crestbrick Pte Ltd (CEA Licence No. L31010886H) and is not a licensed financial adviser or mortgage broker.

Frequently asked questions

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 to 5 year mark of construction (near TOP) to avoid extended transitional housing costs. Start marketing your HDB 6 to 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 to 4 week lag between milestone certification and CPF release.