Deferred payment schemes in Cairnhill luxury condos bear fruit
By Bong Xin Ying
/ EdgeProp |
From July 16 to 31, there were 18 transactions at Hilltops, the ultra-luxury project by SC Global Developments at Cairnhill Circle. Units sold ranged from an 807 sq ft, two-bedroom unit that went for $2.27 million ($2,809 psf) to a 1,733 sq ft, three-bedroom unit that fetched $5.89 million ($3,400 psf), based on caveats lodged.
In July, 18 units were sold at Hilltops as buyers rushed to exercise their options before the expiry of the ‘transitional remission’ under the old ABSD regime (Credit: Samnuel Isaac Chua/ The Edge Singapore)
Leong Boon Hoe, chief operating officer of List Sotheby’s International Realty, Singapore, reckons the 18 caveats lodged in July could have been for deals committed back in July 2016 when SC Global launched an “enhanced purchase plan” that allowed prospective buyers at Hilltops to earn a 10% return a year on a 20% down payment for the purchase of 30 selected units.
These 30 units had existing tenancies in place, and comprised two- and three-bedroom units sized from 800 to 1,700 sq ft that were priced from $2.5 million to $6 million. The buyers only needed to complete the purchase two years later and pay the remaining 80%.
The reason for the buyers exercising their options before July 26 was so that they would not be hit by the higher additional buyer’s stamp duty that came into effect on July 6. This is because there is a “transitional remission” for residential properties where the option to purchase was granted on or before July 5. However, the buyers will have to exercise their option to purchase before July 26 to enjoy the former ABSD rates.
The 241-unit, freehold Hilltops was launched at the peak of the market in 4Q2007. When the project was first launched, prices crossed $4,000 psf. It hit an all-time-high of $4,812 psf, achieved for a 2,465 sq ft, four-bedroom unit on the 12th floor that fetched $11.86 million, according to a caveat lodged in October 2007. The purchaser had an HDB address.
Hilltops was completed in 2011, and it contains a 14-storey block and two 20-storey towers. Units in the development are a mix of two- to five-bedroom apartments sized from 800 to 2,800 sq ft. There are also four penthouses ranging in size from 5,300 to 12,600 sq ft. These come with a private pool and roof terrace.
Located across the road from Hilltops is The Peak @ Cairnhill I and The Peak @ Cairnhill II. The two projects were originally developed in a joint venture between TEE Land and TG Development. In 2016, the JV was dissolved and TEE Land took 100% ownership of the company that held The Peak @ Cairnhill I, while TG Development took over 100% ownership of The Peak @ Cairnhill II.
There were two caveats lodged for The Peak @ Cairnhill I and thre caveats lodged for The Peak @ Cairnhill II as buyers exercised their option to purchase in order to avoid paying a higher ABSD. (Credit: Samuel Isaac Chua/ The Edge Singapore)
The Peak @ Cairnhill I is a 15-storey block with 52 units. Typical units are a mix of oneand two-bedroom units sized from 527 to 689 sq ft. There are also two penthouses within the project sized from 1,797 to 1,991 sq ft. The project was completed in 2014 and relaunched in 4Q2016.
The Peak @ Cairnhill II is an 18-storey block with 60 units. Typical units in the project are two-bedroom apartments sized from 829 to 904 sq ft. There are also two penthouses of 1,862 to 1,884 sq ft, and these contain two bedrooms and a study. The project was completed in 2015 and launched in January 2017.
To date, all the typical units at The Peak @ Cairnhill I are sold. Only the two penthouses are still available. Meanwhile, at The Peak @ Cairnhill II, only one penthouse is still available for sale.
The developers of The Peak @ Cairnhill I and II had also offered an enhanced payment scheme that was launched in January 2017. Buyers need only pay a 20% down payment and defer the completion of purchase for 18 months at The Peak @ Cairnhill I. At The Peak @ Cairnhill II, the completion of purchase is deferred to two years later. Stamp duty can also be paid only upon the exercise of the option to purchase.
Under this scheme, the buyer has to sign a master tenancy agreement with the developer to allow the latter to lease out the unit. The property tax and maintenance fees are to be borne by the developer, and the buyer can also nominate someone else to exercise the option if they decide not to purchase the unit, according to Fanny Cheng, assistant general manager of property development at TEE Land.
The two caveats lodged for The Peak @ Cairnhill I and the three caveats lodged for The Peak @ Cairnhill II in July were most likely buyers who exercised their option to purchase in order to avoid being hit by the higher ABSD that would kick in from July 26 after the “transitional remission” period is over, adds Cheng.
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