Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
Two Purchase Routes: New Launch vs Resale
Private residential property purchases in Singapore follow one of two routes, each with a distinct process, timeline, and set of legal documents:
- New launch (developer sale): Buying directly from the developer during the launch phase. The property is typically under construction. The purchase follows the Developer’s Sale and Purchase Agreement (SPA) and a progressive payment schedule tied to construction milestones.
- Resale (sub-sale or open market): Buying from an existing property owner. The transaction uses an Option to Purchase (OTP) and a standard Sale and Purchase Agreement. Completion typically occurs within 8–12 weeks of the OTP being exercised.
New Launch Purchase Process
Step 1: Showflat Booking and Expression of Interest
For popular new launches, developers typically conduct a ballot or e-balloting exercise. Interested buyers register an Expression of Interest (EOI) and are assigned a booking queue number. On the booking day, buyers in the queue select their unit and sign the booking form.
Step 2: Booking Fee (Option Fee)
On the day of booking, the buyer pays the booking fee — typically 5% of the purchase price — to secure the unit. In exchange, the developer issues an Option to Purchase (OTP) valid for 3 weeks.
The buyer must exercise the OTP within the 3-week period to proceed. If the buyer does not exercise within 3 weeks, the developer may retain a portion of the booking fee (typically 25% of the 5% booking fee) as a forfeiture charge.
Step 3: Exercising the OTP and Signing the SPA
To exercise the OTP, the buyer instructs their solicitor to review and sign the Sale and Purchase Agreement (SPA) within 3 weeks of receiving the OTP. At this point:
- A further 15% of the purchase price (less the 5% booking fee already paid) is payable — bringing the initial payment to 20% of the purchase price (for bank loan buyers)
- BSD is payable within 14 days of signing the SPA
- ABSD is payable within 14 days of signing the SPA (if applicable)
| New Launch Payment Stage | % of Purchase Price | Trigger |
|---|---|---|
| Booking fee (Option) | 5% | On booking day |
| SPA signing (balance of 20% less booking fee) | 15% | Within 3 weeks of receiving OTP |
| Foundation completion | 10% | On developer’s notice |
| Reinforced concrete framework | 10% | On developer’s notice |
| Brick walls | 5% | On developer’s notice |
| Ceiling/roofing | 5% | On developer’s notice |
| Doors, windows, electrical, plumbing (rough) | 5% | On developer’s notice |
| Certificate of Statutory Completion (CSC) | 25% | On Temporary Occupation Permit (TOP) |
| Notice of Vacant Possession (keys) | 15% | On developer’s notice of vacant possession |
| Defects liability period end | 5% | 12 months after vacant possession |
Agent note: For buyers using a bank loan, the bank disburses funds progressively as each construction milestone is reached. The buyer pays cash or CPF only for the initial 20%, then the bank services each subsequent instalment from the approved loan amount. Buyers should confirm with their bank whether the loan drawdown schedule aligns with the progressive payment schedule.
Resale Private Property Purchase Process
Step 1: Negotiation and Agreed Terms
The CEA agent for the buyer and the seller’s agent negotiate the purchase price, completion date, and any special conditions (e.g., tenanted property with lease-back, fixtures to be included or excluded). Once terms are agreed, the seller’s agent prepares the OTP.
Step 2: Option to Purchase (OTP)
The seller grants the buyer an OTP in exchange for the option fee:
- Option fee: Negotiated between parties — typically 1% of the purchase price for private property
- Option period: Standard 14 calendar days from the date of the OTP (14-day option for private resale)
- During the option period, the seller cannot grant an OTP to any other buyer
Step 3: Due Diligence During the Option Period
The buyer’s solicitor uses the 14-day option period to conduct due diligence, including:
- Title search to confirm the seller’s ownership and check for encumbrances (outstanding mortgages, caveats, restrictions)
- Reviewing the strata title for condominiums (management corporation standing, outstanding maintenance arrears)
- Confirming the existing tenancy status if the property is tenanted
- Obtaining in-principle loan approval from the bank
Step 4: Exercising the OTP
To exercise the OTP, the buyer’s solicitor submits the exercise notice to the seller’s solicitor and pays the exercise fee:
- Exercise fee: Typically 4–9% of the purchase price (depending on what the option fee was — combined option fee + exercise fee totals 5–10% of purchase price)
- BSD is payable within 14 days of exercising the OTP
- ABSD is payable within 14 days of exercising the OTP
Step 5: Completion
Completion for private resale transactions typically occurs 8–12 weeks after the OTP is exercised. On the completion date:
- The balance of the purchase price is paid (through the bank loan + CPF)
- Legal title transfers to the buyer
- Keys are handed over
- Outstanding mortgage on the seller’s property is discharged
Stamp Duty Payment Timing
| Transaction Type | BSD Due Date | ABSD Due Date |
|---|---|---|
| New launch — signing SPA | Within 14 days of signing SPA | Within 14 days of signing SPA |
| Resale — exercising OTP | Within 14 days of exercising OTP | Within 14 days of exercising OTP |
Stamp duty must be paid in cash (or via CPF OA if the CPF balance is sufficient after the downpayment). Late stamp duty payment incurs penalties from IRAS — buyers and agents should ensure stamp duty funds are prepared in advance, not arranged after the OTP is exercised.
ABSD and the Remission Clock
For married Singapore Citizen couples who are eligible for the ABSD remission (selling their existing HDB or private property within 6 months of the new private property purchase), the 6-month clock starts from the date of the new property’s purchase — which for resale is the date the OTP is exercised, and for new launch is the date the SPA is signed.
Agents advising upgrader clients must track this date carefully. If the existing property is not sold and completed within 6 months of the new purchase date, the ABSD remission is forfeited.
Using LEVR Before the OTP Is Signed
Before advising a client to proceed to the OTP stage on a private property, run the following in LEVR:
- ABSD calculation: Confirm the ABSD payable based on the buyer’s profile (SC, SPR, or foreigner; first or subsequent property). ABSD must be paid within 14 days — the client needs cash ready.
- BSD calculation: BSD is calculated on the purchase price on a progressive marginal rate basis. At $2 million, BSD alone exceeds $60,000.
- Loan repayment stress test: Use the Home Loan Calculator to confirm the monthly repayment is within the client’s TDSR headroom at the 4% stress-test floor.
- Total cash required at completion: Sum the downpayment (cash component), BSD, ABSD, and legal fees to confirm the client has sufficient liquid assets to complete the purchase.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.