Reports by The Strait Times are that more developers of completed condos with deferred payment, are giving incentives to potential buyers to lure them following last year’s success of the deferred payment plan.
The latest projects offering deferred payment schemes are The Peak @ Cairnhill II by TG Development, Ardmore Three by Wheelock Properties and Sky Habitat by CapitaLand.
At Peak @ Cairnhill II buyers are getting a discount of 15% and a deferred payment plan that is enhanced. Buyers pay a down payment of 20% to secure their purchase option which they can exercise after 2 years.
“The buyers sign with the developer a master tenancy agreement to allow the units to be rent out and generate rental income,” said Dominic Lee Branch district manager PropNex Realty, the project marketer.
“The developer is also absorbing the maintenance fee and property tax payable in the 2-year duration,” he added.
According to Mr. Lee, the units are selling at approximately $2,550 psf after discount.
At Ardmore Three, a buyer can opt to defer the payment of 80% for two years. Rebates and discounts by the developer at the property started in 2016.
Other two projects giving incentives are marketed by ERA Realty Network and are Corals at Keppel Bay and One Balmoral. Corals at Keppel Bay is giving a discount of $50,000 to selected units while units at One Balmoral are going at a 13% discount.
Developers are following suit with the last year’s success of the marketing schemes. OUE had deferred payments for the OUE Twin Peaks in which 220 of its 462 units were sold.
Also, CapitaLand had its version of the scheme known as stay-then-pay at D’Leedon and The Interlace. The success of the program led CapitaLand to extend the incentive to Sky Habitat in January.
Under the stay-then-pay plan, permanent residents and Singaporeans make a down payment of 10% to exercise the purchase option. They can occupy the unit and pay the remaining 90% one year after exercising the purchase option. Foreign buyers make a down payment of 15%.
Analysts are of the opinion that the innovative marketing schemes by the completed projects will not affect the condos that are newly launched. According to Eugene Lim of ERA Realty, only a small percentage of the primary sales is of the completed projects.
If you would like to know more condos with deferred payment scheme, please visit Pollen & Bleu at Farrer Drive in District 10, Mon Jervois in District 10, Gramercy Park at Grange Road by CDL in District 10 and not forgetting Leedon Residence at Leedon Heights by GuocoLand.