Progressive Payment Scheme Singapore 2026 — New Launch Condo Guide

Reading Time: 8 minutes

For anyone purchasing a new launch condo in Singapore in 2026, understanding the Progressive Payment Scheme (PPS) is not optional — it is foundational. Unlike buying a resale property where you pay the full price at completion, new launch buyers pay in stages as construction milestones are reached. With several major new launches entering the market this year, knowing exactly when your cash, CPF, and bank loan are drawn down can mean the difference between confident planning and a financial blindspot.

What Is the Progressive Payment Scheme (PPS)?

The Progressive Payment Scheme is the standard government-mandated framework under which buyers of uncompleted private residential properties in Singapore pay for their unit. Rather than handing over the full purchase price on signing day, you pay in tranches that correspond to specific construction milestones certified by the building’s architect or engineer.

PPS is governed by the Housing Developers (Control and Licensing) Act and its associated rules. Because the scheme is legislated, all licensed developers selling uncompleted units must follow the same payment structure — there is no negotiation on which milestone triggers which payment percentage. This protects buyers by ensuring they only part with money as the project physically progresses, reducing the risk of paying for a building that has not yet been built.

The total purchase price is split across eight defined stages, and each stage unlocks a portion of your loan and CPF. For buyers coming from an HDB flat or juggling existing financial commitments, understanding the cash-flow implications of each stage is essential before you sign anything.

PPS Payment Milestones — Stage by Stage Breakdown

The eight payment milestones and their corresponding percentages of the purchase price are set out in the Housing Developers Rules. Here is a breakdown of each stage and what it means in practice:

Stage 1 — Booking Fee (5%)

Paid on the day you exercise your Option to Purchase (OTP) or on booking day. This must be paid entirely in cash — CPF cannot be used at this stage. It is typically collected directly by the developer’s sales office. Once paid, your unit is reserved and the developer will issue the Sale and Purchase Agreement (S&P) within 14 days.

Stage 2 — Sale and Purchase Agreement (15%)

Due within 8 weeks of the developer issuing the S&P. This 15% can be paid using CPF Ordinary Account (OA) funds, cash, or a combination of both — as long as you have completed your CPF valuation application. Your bank loan does not kick in yet at this stage.

Stage 3 — Foundation Completion (10%)

Triggered when the foundations (piling, reinforced earth, or caissons) are certified as complete. This is often the first milestone where your bank loan starts disbursing. The architect issues a certificate, the developer invoices you, and your bank releases the corresponding loan tranche directly to the developer. CPF can supplement any shortfall if you have the balance.

Stage 4 — Reinforced Concrete Framework (10%)

Paid when the reinforced concrete structure — columns, beams, and floor slabs — for the entire development is complete. At this point, the physical skeleton of the building is visible. For high-rise condos this milestone can take 12–18 months from foundation, depending on site conditions and contractor pace.

Stage 5 — Partition Walls (5%)

Triggered when brickwork and partition walls for the whole development are up. This stage represents the internal layout of units beginning to take shape. It is a relatively small payment but confirms structural progress is on track.

Stage 6 — Car Park, Roads and Mains Services / Roofing (5%)

This stage is split: 5% is due when the car park level, roads and mains services (water, electrical, sanitary) within the development are completed. For projects with roofed structures, this also covers roofing completion. It signals that the development’s infrastructure is largely in place.

Stage 7 — Temporary Occupation Permit (25%)

The largest single tranche — 25% — is due when the Building and Construction Authority (BCA) grants the Temporary Occupation Permit (TOP). At TOP, the unit is legally habitable, and buyers can take possession and move in. This is also the stage where the final bulk of your bank loan is disbursed. For buyers who plan to rent out the unit immediately, this is effectively your “live” date.

Stage 8 — Certificate of Statutory Completion (15%)

The final 15% is due when the Commissioner of Building Control issues the Certificate of Statutory Completion (CSC), confirming the entire development has been built in accordance with approved plans. CSC typically follows TOP by 12–24 months. At this stage, the legal title is issued and the formal conveyancing process to transfer ownership to you is completed. Your outstanding loan balance is fully disbursed at or before this point.

Using CPF and Bank Loans Under the PPS

One of the most important practical aspects of PPS is understanding exactly when your CPF OA savings and your bank loan start working for you.

CPF Under PPS

CPF can be used from Stage 2 (S&P signing) onwards, subject to the CPF Valuation Limit. The valuation limit is the lower of the purchase price or the property’s valuation. CPF can cover up to 100% of the valuation limit, and withdrawals beyond that require you to have set aside the Basic Retirement Sum (BRS) or Full Retirement Sum (FRS) depending on your age and situation.

Each time a payment milestone is triggered, CPF Board will release the corresponding amount from your OA directly to the developer — provided you have submitted the necessary CPF withdrawal application and the bank has lodged the mortgage. It is critical to apply for CPF withdrawal before the milestone is triggered, not after, to avoid delays or late payment interest charges.

Bank Loan Disbursement Under PPS

Your approved bank loan is not handed to you as a lump sum. Instead, the bank disburses progressively in tranches corresponding to each certified milestone. From Stage 3 (foundation) onwards, the bank releases its portion of each stage payment directly to the developer. This means your interest clock starts ticking from Stage 3 — not from TOP.

During the construction period (Stages 3–6), many buyers opt for an interest-only servicing arrangement, where they pay only the interest on the disbursed loan amount each month rather than full principal + interest. This keeps monthly outgoings lower while the unit is not yet ready. However, it also means the principal is not being reduced during this period. Once TOP is reached and the full loan is disbursed, borrowers typically switch to full principal + interest repayment.

The Total Debt Servicing Ratio (TDSR) of 55% applies to your full eventual loan amount, so your bank will have stress-tested your repayment ability based on a higher notional rate — typically 4% per annum as of 2026. See our guide on TDSR Singapore 2026 for a full explanation of how this affects your borrowing capacity.

PPS vs Deferred Payment Scheme — Key Differences

The Deferred Payment Scheme (DPS) was a popular alternative to PPS that allowed buyers to pay only the 20% downpayment upfront and defer the remaining 80% until TOP. DPS was discontinued by the government in October 2007 following concerns about speculative activity — it effectively allowed buyers to control units with minimal upfront outlay and flip them before TOP without full payment.

Today, DPS is no longer available for standard uncompleted residential properties in Singapore. All new launch condo purchases must follow the PPS framework. Some developers in the past offered “Deferred Payment” on completed units (which is different — it is a developer installment plan on a completed property), but this is distinct from the legislated PPS structure for uncompleted builds.

Planning Tips for HDB Upgraders Buying Under PPS

HDB upgraders face a unique set of challenges when buying a new launch condo under PPS, because they are often managing two properties simultaneously — the existing HDB flat they have not yet sold, and the new condo they are paying for progressively. Here are the key considerations:

1. Time Your HDB Sale Carefully

If you sell your HDB too early, you may be left renting — potentially for 3–4 years — while your new condo is being built. If you hold your HDB too long, you may face the Additional Buyer’s Stamp Duty (ABSD) on the new purchase. As of 2026, Singapore Citizens buying a second property pay 20% ABSD. Review our full guide on ABSD Singapore 2026 to understand the remission conditions and timing strategies available to HDB upgraders.

2. Model Your Cash Flow Stage by Stage

Before committing, map out each PPS milestone against your projected CPF OA balance and available cash. Remember that CPF contributions from your salary continue to accumulate during the build period — this can meaningfully increase your CPF OA balance by the time major milestones like TOP arrive. A realistic cash-flow model prevents unwelcome surprises at Stage 7 (TOP), which carries the largest single payment of 25%.

3. Understand the Loan-to-Value (LTV) Limit

If you have an existing outstanding HDB loan at the time of purchasing the new condo, your LTV for the new property drops from 75% to 45%. If your HDB loan is fully paid, LTV remains at 75%. This dramatically affects how much loan you can take, and by extension, how much cash + CPF you need to cover the downpayment. Speak to a mortgage broker before exercising any OTP.

4. Factor in the Minimum Occupation Period (MOP)

You cannot sell your HDB flat unless you have fulfilled the 5-year Minimum Occupation Period (MOP). If your MOP ends around the same time as your new condo’s TOP, you may have a clean handover. If MOP ends earlier, you have more flexibility to sell and reduce your ABSD exposure. Refer to our HDB upgrader guide for a step-by-step transition roadmap.

5. Reserve a Cash Buffer for TOP

At TOP (Stage 7), a 25% payment is triggered — the largest single tranche. While your bank loan and CPF will cover most of this, ensure you have enough liquid cash to cover any shortfall, legal fees, stamp duties already paid, and renovation costs which will follow shortly after. A buffer of S$30,000–S$80,000 above what the numbers suggest is widely recommended by financial planners.

Is Buying Under PPS Right for You in 2026?

The PPS is not a scheme you opt into or out of — it is the law for all new launch condo purchases in Singapore. What you do control is how well-prepared you are before the first cheque is written.

In 2026, new launch prices in Singapore remain elevated despite cooling measures, with mass-market condos regularly launching above S$2,000 psf and prime and city-fringe developments commanding S$2,800–S$3,500 psf and above. At these price levels, each 10% milestone payment on even a modest S$1.5 million unit represents S$150,000. The stakes of misunderstanding your payment obligations are significant.

Buyers who are best positioned under PPS are those who:

• Have a clear picture of their CPF OA balance today and projected balance at each milestone
• Have secured an in-principle approval (IPA) from a bank before visiting showflats
• Have modelled their ABSD exposure if they are upgrading from an HDB or already own a private property
• Have a clear plan for their existing property — whether to sell before or after exercising the OTP
• Are buying for own-stay or long-term investment, not short-term speculation

If you are exploring new launch condos in Singapore and want a side-by-side comparison of specific projects, payment timelines, and financing options, the best next step is to speak with a licensed consultant who can run the numbers specific to your situation — not generic projections.