Increasing tendency of deferred payment schemes among developers
The truth is, two more developers are currently offering the choice following the recent success of OUE Twin Peaks, which offered the scheme.
The scheme partially bets on whether present loan-to-value limitations will be fine tuned, since nearly all the buyer’s payment is normally needed after.
CapitaLand lately introduced its variant of the scheme at The d’Leedon and Interlace condominiums, where about 20 units have since been sold.
Buyers at CapitaLand’s stay-then-pay strategy love a 15 percent reduction, and can go into the unit once they’ve exercised the Option to Purchase (OTP). While paying from the OTP buyers subsequently make a 10 percent downpayment in eight weeks.
Foreign buyers, on the other hand, pay from the said date, and can pay a 15 percent downpayment from exercising the OTP.
Buyers who take up the scheme aren’t permitted to rent out their unit. As at end-March, CapitaLand had 99 unsold units at 181 unsold units and The Interlace at d’Leedon.
The developers of The Boutiq in Killiney Road are also using a similar strategy.
Savills Singapore Research Head Alan Cheong noted the growing use of deferred payment schemes suggests the marketplace is having trouble clearing unsold stock.
“Developer sales may have improved but there’s still lots of supply to be soaked up said a senior associate in Dentons Rodyk’s Property practice group, Lee Liat Yeang.