A BUC property is one that developers sell off-plan before it is physically completed. The construction period typically spans 3 to 4 years, during which buyers do not take immediate possession.
Common Building Under Construction Property Types:
- Private condominiums
- Executive condominiums (ECs)
- Some strata landed projects
Considering purchasing a building under construction unit? It’s essential to consider these 3 factors first:
- Financial Calculation – Check your loan eligibility to determine if you can obtain a sufficient loan amount to finance your purchase based on your budgeted purchase price.
- Progressive Payment Scheme – Learn about the payment scheme to maximize your available cash flow.
- Financial Risk Assessment – Analyse the stress of the potential purchase on your financial health.
Key Benefits of Buying a Building Under Construction Property (BUC)
1. Progressive Payment Scheme (PPS)
One of the biggest advantages is the Progressive Payment Scheme, which allows you to pay for the property in stages as construction progresses. This helps manage cash flow as you’re only servicing a portion of the full loan until completion.
| Construction Stage | % Payment |
| Option Fee & Exercise option | 5% + 15% |
| Foundation Works | 10% |
| Framework Completion | 10% |
| Walls, Roof, Wiring | 5%, (4 stages) |
| Temporary Occupation Permit (TOP) | 25% |
| Certificate of Statutory Completion (CSC) | 15% |
Monthly instalments increase gradually over time.
2. Potential for Capital Appreciation
Early buyers may benefit from first-mover pricing. If the market appreciates over the 3–4 years of construction, your property may be worth more by the time it’s completed.
3. Brand-New Property
- Modern layouts
- Full warranty (12 months Defects Liability Period)
- New fittings, fixtures, and M&E systems
- No renovation needed upon key collection
Key Considerations and Risks
1. Long Waiting Period
- You won’t be able to move in immediately. This may not suit those with urgent housing needs.
- Temporary accommodation or dual-housing arrangements may be needed during the construction period.
2. No Guarantee of Market Conditions
- EC buyers face a 5-year Minimum Occupation Period (MOP) before resale is allowed.
- If the property market softens during the construction period, resale prices may stagnate or fall upon completion.
3. Limited Visibility
- You purchase based on artist impressions and showflat units, which may differ from the actual product.
- Choose reputable developers to reduce uncertainty.
Costs Involved in Buying a Building Under Construction Property (BUC)
Upfront Payment
- 5% cash (Option fee)
- 15% CPF or cash upon signing the Sale & Purchase Agreement (within 8 weeks)
Stamp Duties
- Buyer’s Stamp Duty (BSD): Payable within 14 days of exercising the Option.
- Additional Buyer’s Stamp Duty (ABSD): If applicable (e.g., second property or foreigner), payable upfront.
Legal Fees and Loan Charges
- Lawyer and conveyancing fees
- Valuation charges
Financing a Building Under Construction Property (BUC)
- Bank loans only (HDB loans not applicable)
- Subject to the Total Debt Servicing Ratio (TDSR) cap of 55%
- Interest rates based on SORA or fixed-rate (less common) packages
- You can use CPF OA for downpayment and monthly instalments, however, you need to note the order of payment in the following order (cash, CPF monies, followed by bank loan).
Who Should Consider Buying a Building Under Construction Property (BUC)?
- First-time homebuyers who can wait for completion
- Young couples planning ahead
- Investors seeking appreciation potential
- Buyers prefer modern, untouched homes
Final Thoughts
Buying a BUC property in Singapore can be a strategic move for those with long-term plans, a stable financial position, and the patience to wait. It provides flexible cash flow management through the Progressive Payment Scheme and the chance to enjoy a brand-new unit tailored to modern preferences.
However, it’s crucial to understand the risks, including the uncertainty of future prices, construction delays, and developer reliability. Before committing, consult a trusted property advisor, compare loan packages, and always perform your due diligence on the developer and the project.