Increasing tendency of deferred payment schemes among developers

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.

Orchard apartment paid for $21m

Indonesian tycoon Trihatma Kusuma Haliman is considered to have purchased a seventh floor unit at the Le Nouvel Ardmore condominium near Orchard Road for $21 million, reported The Business Times.

This translates to $4,006 psf based on the 5,242 sq ft strata region, which contains a strata null region of 280 sq ft.

Trihatma commands Indonesian property group Agung Podomoro Property, which has lately been in Indonesia under the limelight.

Agung Podomoro Property is among the leading investors of the Pluit City reclamation project that is planned.

Meanwhile, the flat obtained by Trihatma will be the sixth unit sold by Wing Tai within the project that is freehold.

Designed by 2008 Pritzker Architecture Prize winner Jean Nouvel, the 43-unit condominium received its TOP in April 2014.

Wing Tai sold the first unit Cheng Wai Family, the oldest brother of Group Chairman Cheng Wai Keung. at the project for $4,362 psf in 2011 to Edgar At more than $4,300 psf., it sold two more units in 2013

The developer would have began paying extension fees for the project, as it did not satisfy the two-year deadline from the TOP date to sell all units within the project under the Qualifying Certificate (QC) rules, which is directed at preventing foreign property developers from hoarding or theorizing in residential acreage here.