A spate of such incentives — at projects such as Reflections at Keppel Bay (above), The Crest and Marina Collection — proves to be a lure for homebuyers and investors
On Sept 15, more than 30 units at Reflections at Keppel Bay were snapped up via a placement exercise conducted by property agencies OrangeTee and PropNex Realty.
The units were in two 8-storey blocks (Nos 1 and 3) located nearest to the guardhouse at the main entrance fronting Telok Blangah Road, with views of Mount Faber. These two villa blocks contain more than 90 units in total and are part of the 151 units that developer Keppel Land held back for lease under the Residences at Reflections programme when the project was completed in 2011.
The properties offered for sale were two-bedroom units of 1,055 to 1,238 sq ft and three-bedroom units of 1,528 to 1,905 sq ft. Only a maximum of 30 units in Block 1 were offered for sale with the option of a deferred payment scheme (DPS). Meanwhile, units in Block 3 were offered for sale under the normal payment scheme.
There were two packages offered under the DPS. Under DPS1, buyers need only pay 1% booking fee, with the remainder 19% deposit due a fortnight later. However, the buyer will have to exercise the option and pay stamp duty within eight weeks. The remaining 80% will be payable two years later.
Under DPS 2, the buyer will pay a 20% deposit and be issued an option to purchase. The payment for the remaining 80% will only be due 24 months after the option date. In the meantime, the option can be assigned to another person during the 22 months prior to exercising the option to purchase.
Most of the buyers opted for DPS 2. However, regardless of which DPS they choose, they are not allowed to move in or lease out their units immediately. This is because some of the units are sold with an existing tenancy under Residences at Reflections, according to a marketing agent.
All buyers, however, were given a “furniture rebate”, which is essentially a rental return of $5 psf per month for two years, which could amount to at least $125,000. However, the rental return will only be payable at the end of the two-year period for those who opt for the DPS, while those who purchased units under the normal payment scheme will be get it at the end of eight weeks, when the option is exercised.
Under the normal payment scheme, buyers were offered a higher discount of 23%. After taking the discount into consideration, selling prices started from $1.67 million for a two-bedroom unit of 1,055 sq ft, and from $2.45 million for a three-bedroom unit of 1,528 sq ft unit. Unit prices after the discount translated into $1,538 to $1,897 psf. These prices exclude the furniture rebate.
Those who purchased units under the DPS were given a 20% discount. Prices of two-bedroom units therefore started from $1.74 million for a 1,055 sq ft, two-bedroom unit, and from $2.72 million for a 1,690 sq ft, three-bedroom unit. Unit prices after discount were $1,598 to $1,886 psf.
“In the placement exercise, those who opted for the normal payment scheme were given first dibs,” says Dominic Lee, head of PropNex luxury team. “If the unit was uncontested, they would automatically be the successful bidder. However, if there was more than one interested party, balloting was held for the unit.”
At Reflections at Keppel Bay, selected units in Keppel Land’s corporate residences portfolio are now offered for sale under a deferred payment scheme