View Full Version : Deferred payment scheme
buttercarp
24-03-12, 20:42
I thought since 2007, applications from developers to offer deferred payment scheme for new housing projects will not be approved.
Why is it I still see it around for some EC sales?
EC is still allowed to offer deferred payment scheme, if I did not remember wrongly.
I thought since 2007, applications from developers to offer deferred payment scheme for new housing projects will not be approved.
Why is it I still see it around for some EC sales?
bargain hunter
24-03-12, 21:41
http://www.asiaone.com/Business/My+Money/Property/Story/A1Story20101207-251312.html
URA explains why DPS is still available for exec condos (Dec 09 2010)http://www.asiaone.com/a1media/site/common/blank.gifBy Emilyn Yap
PROPERTY developers can continue to offer the deferred payment scheme (DPS) for executive condominiums (ECs) because eligibility and ownership rules keep speculation in such projects at bay.
But homebuyers hoping that the interest absorption scheme (IAS) and interest- only housing loans (IOL) will also be available for ECs are in for a disappointment. The withdrawal of these two schemes in September last year applies to all types of private residential projects.
The Urban Redevelopment Authority (URA) issued clarifications on the various payment schemes in response to queries from BT.
Many in the property industry thought the government had scrapped the DPS for all types of uncompleted private homes in 2007 to curb speculation. It was not until last week that they realised DPS would still be available for ECs.
The news spread when developers of Prive - an EC in Punggol - said they would offer the scheme.
As at 5pm yesterday, 823 applications had poured in for the 680 apartments available in Prive.
Asked why developers can still offer the DPS for executive condominiums, URA said that ECs 'are different from other private residential developments' as they are meant for owners to live in and are subject to eligibility criteria and ownership conditions. For instance, EC buyers must form a family unit and they have to occupy their units for five years before selling them in the open market.
In addition, the subsale of booked ECs is not allowed.
'With these conditions, there is no need to remove DPS for ECs,' URA said. The 2007 move was meant to 'discourage excessive property investments in a buoyant market'.
According to URA, when the DPS was cancelled in October 2007, it had informed the Real Estate Developers' Association of Singapore, the Law Society of Singapore and all licensed developers in writing that the withdrawal would not apply to ECs and flats under the design, build and sell scheme.
Developers which intend to offer DPS for ECs have to seek the Housing and Development Board's approval to vary the terms in the standard sales and purchase agreement.
Then what about the IAS and IOL, which the government disallowed last year for all private residential projects to also discourage speculation? The news release made no mention of ECs then.
URA said that the ban on IAS and IOL 'is effected via the Monetary Authority of Singapore's housing loan rules for financial institutions', which apply to all residential properties, including ECs.
no wonder EC doing well...
no wonder EC doing well...
They only sell EC during the property peak. Those who buy EC caveat emptor.
They only sell EC during the property peak. Those who buy EC caveat emptor.
no lah, Nuovo, Bishan Loft both were sold at the low.
no wonder EC doing well...
I went to Twin Waterfalls, if you pay using this scheme, prices of the unit is much higher.
I went to Twin Waterfalls, if you pay using this scheme, prices of the unit is much higher.
how much higher?
no lah, Nuovo, Bishan Loft both were sold at the low.
http://4.bp.blogspot.com/_ePwCmg71B3o/SHq-YakWuSI/AAAAAAAAANI/FXFfY68eZuc/s1600/Property%2BPrice%2BIndex%2BGraph%2B1960-2007.gif
TOP minus 3. year 2000 is lower than 1996.
those 2 were launched in 2001 if i remember correctly.
buttercarp
25-03-12, 00:13
I went to Twin Waterfalls, if you pay using this scheme, prices of the unit is much higher.
Apart from EC, some other development also got DPS, but yes, prices are higher, by about 5%, so I find it confusing why this scheme is still being practised.
those 2 were launched in 2001 if i remember correctly.
'Depending on location, the capital appreciation can be significant. For example, the average launch price of Bishan Loft was $420 psf in 2001 but there are resale units commanding above $1,000 psf recently.'
http://property.st701.com/resources/articles/property/singapore-property-news/lots-to-pick-from-for-home-buyers/a/52727
Peak at Jun 2000, GLS than sell in Sep 2001.
Bishan Loft is an executive condominium with 384 units and is 2‐3 blocks away from the Bishan MRT Station. Launched in 2001, the units were sold by the developer for an average price of $420 psf over July to November. At the lowest, a 1,184‐sq‐ft unit was sold for $379 psf in November 2001. Prices have not come down since the launch of the project. With the end of the mandatory five‐year Minimum Occupation Period (MOP), prices for the EC in the secondary market have risen steadily from $600 psf to $900 psf.
http://property.st701.com/resources/articles/property/singapore-property-news/lots-to-pick-from-for-home-buyers/a/52727
http://4.bp.blogspot.com/-8zVWc-uiFYk/T29zSmAAvII/AAAAAAAAG80/sSVPIAKdY8w/s1600/executive+condo.JPG
http://www.singaporerealestate.info/blog/2010/04/13/list-of-executive-condos-in-singapore/
http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatModeEC?OpenDocument
Let's take a look at how ECs came about in the earlier days.
In the mid-1990s, the spike in private property prices was so fast that much of the young generation found their dream house out of reach. To meet the hopes of these younger people, ECs were introduced, targeting young graduates and professionals who wanted more than a HDB flat but could not afford a private property.
ECs are a hybrid of public and private housing with initial buyer eligibility and resale conditions similar to HDB homes for the first five years.
These restrictions are completely lifted 10 years after the completion of an EC project. Similar to private condominiums in terms of facilities and designs, ECs are developed and sold by private developers on 99-year leasehold sites under the Government Land Sales Programme.
When ECs were first introduced, they were very popular.
However, from 2005 to 2009, no EC project was launched in Singapore as demand for private property dropped significantly after the Sars epidemic in 2003 and the economic crisis in 2008. The demand for ECs was depressed as 99-year leasehold suburban private condo prices were affordable.
Homebuyers were opting for mass market private condominiums as these do not have buyer eligibility and resale restrictions.
Thus, the government left it to the works of the market and did not see a need to make EC sites available during that period of time.
http://www.asiaone.com/print/Business/My%2BMoney/Property/Story/A1Story20120224-329903.html
http://2.bp.blogspot.com/-R5C8-VX4m2g/T294sPJZ9AI/AAAAAAAAG88/sDGG_jHs4RU/s1600/Executive+launch+price.JPG
http://3.bp.blogspot.com/-Zjos5X_POAc/T295znGGbaI/AAAAAAAAG9E/ba0qHLKVPv8/s1600/New+launch.JPG
Looks like all EC bao jiak.
Looks like all EC bao jiak.
mostly at Ulu - locations 1 leh
mostly at Ulu - locations 1 leh
There will always be the non ulu ones. Nowadays ec location getting better and better.
devilplate
26-03-12, 10:13
There will always be the non ulu ones. Nowadays ec location getting better and better.
yes i agree
esparina ....highly reccomended by me....lol
yes i agree
esparina ....highly reccomended by me....lol
Same here. I wish i qualified. And there's prive, trilliant, twin waterfalls. All pretty good location. Spoilt for choice.
I think twin waterfalls is overrated.
Haha i was talking about those >5years old lar maybe only bishan loft. but 1.1kpsf!
devilplate
26-03-12, 10:41
I think twin waterfalls is overrated.
Haha i was talking about those >5years old lar maybe only bishan loft. but 1.1kpsf!
from the chart, u will noe which r the laggard ones.....;)
from the chart, u will noe which r the laggard ones.....;)
haha hopefully price correction comes when im getting married. maybe by then these 2011/12 launched ECs will clear MOP liao
devilplate
26-03-12, 10:58
haha hopefully price correction comes when im getting married. maybe by then these 2011/12 launched ECs will clear MOP liao
er...dun get the logic....
those EC after 5yrs MOP u can buy now also wat...no nid to get married....after u got married u shd go for hdb bto or new EC from developer wat....lol
er...dun get the logic....
those EC after 5yrs MOP u can buy now also wat...no nid to get married....after u got married u shd go for hdb bto or new EC from developer wat....lol
dun wanna wait ma! the 2-3 years to build is a long time. and meanwhile those that already privatised / clear mop are so exp and ulu!
tats why i say hopefully when these 2011/12 ones clear MOP will have price correction lor. I'm sure during down times, govt will stop building ECs again.
But, having said that, do u think the prices of these Twin waterfall, trilliant, arc etc will be around the same 5 years from now? :beats-me-man:
devilplate
26-03-12, 11:10
But, having said that, do u think the prices of these Twin waterfall, trilliant, arc etc will be around the same 5 years from now? :beats-me-man:
i am not sissy b :p
i am not sissy b :p
lol
Marriage = more household income = more financial strength to buy more properties ;)
buttercarp
26-03-12, 12:01
lol
Marriage = more household income = more financial strength to buy more properties ;)
Just make sure your mrs doesn't become a SAHM!
Just make sure your mrs doesn't become a SAHM!Or have a mrs who is born with a golden spoon... father give her 1 property as wedding gift... ;)
Just make sure your mrs doesn't become a SAHM!
Haha, hopefully! 4 mths of free salary from maternity leave is awesome!!
Or have a mrs who is born with a golden spoon... father give her 1 property as wedding gift... ;)
Wahh where to find!? Indo wife? :D
Safer to based investment on 1 spouse income. U never know when everything crashes down.
Safer to based investment on 1 spouse income. U never know when everything crashes down.Provided that 1 spouse is earning enough for investments...:D
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