How do you pay for a commercial or industrial unit under construction?

In stages, like a new condo, but on a different schedule. The standard sale and purchase agreement under the Sale of Commercial Properties Rules asks for 20% when you sign (including the booking fee), then 10%, 10%, and five 5% instalments as the building goes up, 25% at TOP and the last 10% on completion. Each instalment is due within 14 days of the developer’s notice.

How is it different from buying a new condo?

Four things. You pay 20% at signing rather than 5% then 15% eight weeks later. There is an extra 5% stage for electrical plant, sanitary fittings and air-con, and only 10% is left for completion instead of 15%. GST is charged on every instalment. And you cannot use CPF, so the downpayment and the GST are all cash.

Do I pay GST on a commercial or industrial property?

Yes, when the seller is GST-registered, as developers are. GST (9%) is charged on the price and billed with each instalment, so a S$2 million unit carries S$180,000 of GST over the build. Banks lend on the price, not the GST, so it comes from your cash. A GST-registered business that uses the unit for its taxable business can usually claim the GST back as input tax.

How much stamp duty is there on a commercial or industrial property?

Buyer’s stamp duty on the non-residential bands: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000 and 5% on the rest. On S$2 million that is S$69,600. There is no ABSD on non-residential property. Stamp duty is due within 14 days of signing.

How much can I borrow, and can I use CPF?

MAS does not cap the loan-to-value on commercial or industrial property; most banks lend up to 80% of the price or valuation, whichever is lower, and the loan still counts towards your total debt servicing ratio. CPF cannot be used for commercial or industrial property, so plan for at least 20% plus GST in cash.

What is a deferred payment scheme?

Some developers let you pay less during construction, for example 20% at signing and most of the rest at TOP, usually at a higher price. The calculator has an example deferred plan and a “Developer’s own” option where you type in the developer’s actual percentages from the sales kit.

Commercial & Industrial

Commercial & Industrial Payment Calculator

Offices, shops and industrial units bought from the developer before they are built. See the cash at signing, the GST on every instalment, and the monthly loan as the building goes up.

The purchase

Purchase price (before GST)

Payment plan

The schedule in the standard commercial S&P.

Booking fee

Usually 5%. The law caps it at 10%.Expected TOP

months

Months from booking. Sets the stage dates.

The loan

Loan

Banks usually lend up to 80% on commercial and industrial.Interest rate

Use your bank’s quote.Loan tenure

years

Developer charges GST (9%)My company is GST-registered and can claim it back

Enter the purchase price to see the payment schedule.

The commercial payment schedule

The standard schedule in the sale and purchase agreement prescribed by the Sale of Commercial Properties Rules (Form D, clause 5.1). It covers any strata unit for non-residential use, so offices, shops and industrial units alike, plus 9% GST on each line.

Signing the S&P (including the booking fee)20%

Foundation10%

Reinforced concrete10%

Brick walls5%

Ceiling5%

Doors, windows, wiring, plastering & plumbing5%

Electrical plant, sanitary & air-con5%

Car park, roads & drains5%

TOP25%

Completion (2% to the developer, 8% held by the Singapore Academy of Law until the CSC)10%

How the numbers are worked out

Your downpayment (the price less the loan) pays the stages first, and the booking fee is always cash. The bank then pays the later stages. Interest is charged only on what the bank has paid out, and each payout is spread over the rest of the loan, so the monthly loan steps up stage by stage and peaks at completion.

GST is added to every stage and paid in cash. Stamp duty uses the non-residential bands on the price before GST. Stage dates are estimates scaled to the TOP you expect; the amounts do not depend on them. Legal fees and valuation fees are not included. For a home, use the new launch amortisation table or the buyer’s stamp duty calculator.

Frequently asked questions

How do you pay for a commercial or industrial unit under construction?: In stages, like a new condo, but on a different schedule. The standard sale and purchase agreement under the Sale of Commercial Properties Rules asks for 20% when you sign (including the booking fee), then 10%, 10%, and five 5% instalments as the building goes up, 25% at TOP and the last 10% on completion. Each instalment is due within 14 days of the developer’s notice.
How is it different from buying a new condo?: Four things. You pay 20% at signing rather than 5% then 15% eight weeks later. There is an extra 5% stage for electrical plant, sanitary fittings and air-con, and only 10% is left for completion instead of 15%. GST is charged on every instalment. And you cannot use CPF, so the downpayment and the GST are all cash.
Do I pay GST on a commercial or industrial property?: Yes, when the seller is GST-registered, as developers are. GST (9%) is charged on the price and billed with each instalment, so a S$2 million unit carries S$180,000 of GST over the build. Banks lend on the price, not the GST, so it comes from your cash. A GST-registered business that uses the unit for its taxable business can usually claim the GST back as input tax.
How much stamp duty is there on a commercial or industrial property?: Buyer’s stamp duty on the non-residential bands: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000 and 5% on the rest. On S$2 million that is S$69,600. There is no ABSD on non-residential property. Stamp duty is due within 14 days of signing.
How much can I borrow, and can I use CPF?: MAS does not cap the loan-to-value on commercial or industrial property; most banks lend up to 80% of the price or valuation, whichever is lower, and the loan still counts towards your total debt servicing ratio. CPF cannot be used for commercial or industrial property, so plan for at least 20% plus GST in cash.
What is a deferred payment scheme?: Some developers let you pay less during construction, for example 20% at signing and most of the rest at TOP, usually at a higher price. The calculator has an example deferred plan and a “Developer’s own” option where you type in the developer’s actual percentages from the sales kit.

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Disclaimer

The tools on this page provide estimates for general reference only and do not constitute financial, legal, tax, or investment advice. Calculations are based on prevailing MAS, IRAS, HDB, and CPF rules and rates at the time of publication, which may change without notice. Actual figures — including loan eligibility, interest rates, stamp duties, and CPF usage — depend on your specific circumstances and the final assessment of banks, IRAS, and other relevant authorities. TRIBE makes no warranty as to the accuracy or completeness of any output and accepts no liability for decisions made in reliance on these tools. Please verify all figures with the relevant institutions or a qualified professional before committing to any transaction.