Luxury property developer SC Global Developments has launched an enhanced purchase plan to help move unsold units at its Hilltops condominium in Cairnhill.
For a 20 percent upfront payment, buyers will be given a two-year option to purchase the units at a fixed price. During the period, buyers will receive a return of 10 percent each year on the downpayment before completing their purchase.
For instance, a 20 percent downpayment of $600,000 on a $3 million unit would generate an annual repayment of $60,000 per year to the buyer. This would amount to $120,000 over two years, while saving the buyer two years of mortgage payments (up to $100,000).
Under this scheme, SC Global is marketing 30 units, which are leased out to tenants. The 10 percent yield will be secured by tenancies managed by the developer.
The said units comprise two- and three-bedroom condos of sizes ranging from 800 sq ft to 1,700 sq ft. Prices range from $2.5 million to $6 million.
Simon Cheong, Chairman and CEO of SC Global said: “We believe this plan is unique and was designed in response to feedback we have received from prospective clients who are keen on our property but who, for various reasons, have some constraints in timing and need the additional flexibility.”
The developer believes there is still genuine demand for Singapore homes, but some buyers face constraints in facilitating their purchase.
“The two-year option will give them the security to buy at a fixed price today, and allows them to generate a healthy return on their downpayment during the interim. It facilitates genuine home ownership by addressing some of these constraints,” said Cheong.
In a statement, SC Global said the scheme is expected to benefit home upgraders who need more time to sell their existing property and do not want to be burdened by two mortgages.
It also gives older Singaporeans who plan to downsize more time to dispose their property, and get a good return on their downpayment in the meantime.
Furthermore, it will help overseas Singaporeans who plan to return home in future and want to secure a property now, but find it difficult to manage a property and tenant while abroad.
Completed in 2011, Hilltops comprises 241 furnished units in three residential blocks.