After the success of the deferred payment scheme at OUE Twin Peaks and its counterpart ‘Stay-then Pay’ by CapitaLand at The Interlace and D’Leedon, more developers have joined in.
The latest is KOP Properties which has adopted the scheme for Ritz-Carlton Residences. The developer launched the DPS towards the end of October in a Hong Kong Roadshow. The marketing was being done by SQFT Global Properties with prices starting at just below $3,000 psf.
Under the DPS, buyers pay an option fee of 20% with the exercise of the option being after 22 months and the completion being in month 24. However, buyers can occupy the unit immediately after payment of the option fee. The remaining 80% is differed until after two years. Five units were booked at the Hong Kong Roadshow under the scheme.
Buyers in Singapore can now access the DPS for Ritz-Carlton Residences. The ultra-luxurious development was completed in 2011. It has 56 apartments of 3 and 4 bedrooms and 2 penthouses, a junior penthouse that fetched $3,404 psf or $11.8 m in July 2009 and a senior duplex penthouse that sold for $4,307 psf or $28 m in February 2011 based on lodged caveats.
The sales representative in Singapore for Ritz-Carlton Residences is Stefanie Wong of SRI.
A 3- bedroom unit will cost from $8.38 m or $ 2,960 psf after DPS and discounts. The majority of the units available are 3 bedrooms with a monthly rental rate of $15,000. Only one 4-bedroom unit measuring 3,050 sq ft is remaining at $3,607 psf or $11m.
According to the Nov 25 caveats, the latest transaction was the resale of a 4 bedroom unit at $2,617 or $8 million.
Another DPS is “Stay & Pay Later” at Marina Collection. The high-end condo whose completion was in 2011 has 124 units comprising of 3 and 4 bedrooms units as well as 4-bedrooms units plus studio and penthouses.
Under the scheme, buyers pay a booking fee of 10% and a down payment of 10% after exercising the option to purchase, after two weeks. After paying the 20%, buyers can occupy or rent out the units. The remaining 80% is payable after three years.
Two units were sold in November under the “Stay $ Pay Later” scheme, a Penthouse of 4 bedrooms at $1,758 psf or $6 million and a 4-bedrooms plus studio that fetched $1,793 psf or $5 million.
There are 29 more units being offered under the scheme at Marina Collection with the joint marketing of SRI, PropNex Realty and Mutual Benefits Realty.
iLiv @ Grange is another development giving buyers a DPS. The condo of 30 units had its completion in October 2013. The units are 1 to 3 bedrooms apartments and 2 penthouses. The developer was to sell all units by October 2015 so as not to incur extension charges. Heeton Holdings, the developer, had tried to sell the units en bloc twice while failing.
In October, Heeton sold its stake to Singaporeans at $1,624 psf or $95 million.
Under the scheme, buyers pay a down payment of 20% and the balance after two years. The units are being offered for sale at $2,500 psf. Interest has been for individual units and also on en bloc.