How to Upgrade to a New Launch Condo: 4 Different Options for Homeowners
Are you considering of upgrading from your current home to a new launch condominium (also known as a Building Under Construction, or BUC)? Whether you’re upgrading from a HDB or an existing condo, this article is for you. In this article, I’ll walk you through four proven methods to upgrade from your current property to a new condominium—explaining the pros, cons, and ideal scenarios for each. These strategies have helped many of my clients make smooth transitions, and I hope they’ll help you too.
Option A: Buy First, Pay ABSD, Then Apply for Remission
How It Works:
Purchase the new condo while still owning your current home.
Pay the Additional Buyer’s Stamp Duty (ABSD), which is currently 20% of the purchase price.
After the new condo achieves TOP and you sell your existing property, you can apply for ABSD remission.
✅ Pros:
You get to continue living in your current home until the new condo is ready.
More time for renovations and planning the move.
Flexible marketing and selling period for your old home after moving.
❌ Cons:
You need significant cash upfront for the 20% ABSD.
If you’re taking a second mortgage, your loan-to-value (LTV) ratio drops to 45-65%, reducing your loan eligibility.
⚠️ Special Case – EC Buyers:
If you’re upgrading from HDB to an Executive Condominium (EC), the good news is:
No ABSD required.
You’re allowed to defer your payments.
You avoid double mortgages since you’re required to sell the HDB eventually.
This makes ECs one of the most popular options for HDB upgraders.
Option B: Decoupling – Restructuring Ownership
How It Works:
One spouse sells their share of the existing property to the other.
The seller becomes “free” of property ownership and can buy the new condo as a first-time buyer—ABSD-free.
✅ Pros:
Retain your current home as a second property.
Potential cash proceeds from the internal sale can help fund the new purchase.
Flexibility to restructure ownership or refinance the new condo later.
❌ Cons:
The new condo must be purchased under a single name, meaning only one person can take the loan.
You cannot use your spouse’s CPF for the new purchase.
Not applicable for HDB owners (decoupling is not allowed).
This method is common among private property owners looking to own multiple properties without incurring ABSD.
You can read more about Decoupling including a free decoupling calculator to download with tutorial here.
Option C: Sell First, Then Buy
How It Works:
Sell your current property before committing to the new condo.
Once the buyer exercises the Option to Purchase, you are officially off the title.
Now you’re eligible to buy a new condo without ABSD.
✅ Pros:
No ABSD since you’re no longer a property owner.
You can max out your bank loan eligibility.
CPF funds are refunded and available for your next purchase.
❌ Cons:
You’ll need to arrange temporary accommodation—either rent or stay with family.
Managing the timeline is crucial: always wait for the buyer to exercise the OTP before buying.
⚠️ Key Advice:
If your buyer backs out of the HDB deal, your maximum loss is 1%. But if you back out of a condo purchase, your loss could be 1.25% of the purchase price—a much more significant financial hit. That’s why I always advise my clients to wait for the buyer to exercise before proceeding with a new purchase.
Option D: Buy Under Trust – For Multiple Property Owners
How It Works:
Purchase the new condo under a trust for your child.
Avoid ABSD because your child is considered a first-time buyer.
✅ Pros:
No ABSD incurred under the trust structure.
Retain your current properties while acquiring another one.
Ideal for families looking to build a long-term property portfolio.
❌ Cons:
No mortgage allowed—must be a full cash purchase.
The property legally belongs to your child.
High initial outlay: ABSD is 65% upfront, although remission is possible within 4-6 months (based on experience and IRAS approval).
This option is suitable for high-net-worth individuals or families with multiple properties looking to expand their holdings without triggering ABSD.
You can read more about Trust here.
Final Thoughts: Choosing the Right Upgrade Path
Each of these four strategies—ABSD with remission, Decoupling, Sell First then Buy, or Buying via Trust—comes with its own benefits and challenges. The right choice depends on:
Your current property type (HDB or condo)
Cash flow and loan eligibility
Timeline and family needs
Long-term investment goals
As a property strategist, I’ve helped hundreds of homeowners and investors plan smooth transitions, optimize taxes, and build sustainable property portfolios.
📞 Need help deciding which option works best for your case? Feel free to reach out to us for more in-depth discussion and which method works best for you.