Deferred payment schemes in Cairnhill luxury condos bear fruit

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...