To attract more buyers, two more property developers have now turned to deferred payment systems.
This is after the success of OUE Twin Peaks, which has been using the scheme.
Under the deferred payment, the buyer is expected to make the rest of the payment later.
Since the introduction of the scheme in late March and the longer option exercise date, OUE has recorded about 160 sales on Twin Peaks.
Capital Land, which has introduced its version of deferred payment scheme on most of the unsold units at The Interlace and D’Leedon has sold around 20 units at D’Leedon.
With its stay-then-pay scheme, buyers are given a 15% discount and they can move in once they exercise OTP – Option to Purchase. They are required to pay a 10% down payment in 8 weeks and pay the outstanding 90% a year after exercising OTP.
By contrast, in standard payment buyers are required to pay the outstanding 90% 8 weeks after exercising OTP.
Under the Capital Land scheme, foreigners are required to pay a 15% down payment after OTP and pay 85% a year from the date.
Buyers cannot rent the units under the scheme. By the end of March, D’Leedon had 181 units unsold while The Interlace had 99 units unsold.
The Boutiq developers are introducing a similar plan. Under the scheme, a buyer pays 1% option fee, 4% after 2 weeks, 15% in 8 weeks, 30% in 18 months and 50% in two years. All the dates are calculated from OTP date.
Alan Cheong, research head Savills Singapore said that the increased use of the plans is a sign that the market is finding it difficult to clear the unsold units.
Mr Lee Liat, Dentons Rodyk and Davidson senior partner sentiments are that in as much as there is an improvement in developer sales, supply is still high.