Stay first, pay later at d’Leedon and The Interlace

By Feily Sofian / The Edge Property | June 14, 2016 6:28 PM SGT
CapitaLand is stepping up its marketing campaign to court buyers by offering an incentive package for its two mega projects, d’Leedon and The Interlace. The incentive package comprises a 15% discount and a stay-then-pay programme for the majority of units. The scheme allows Singaporeans and permanent residents to put down a 10% upfront payment, stay in the property and pay the remaining 90% one year later. For foreign purchasers, the upfront payment would be 15%.
Unlike OUE Twin Peaks, which also offers a similar payment scheme, buyers are entitled to equal discounts at d’Leedon and The Interlace, regardless of whether they opt for the conventional payment or the stay-then-pay scheme.
The biggest draw of the scheme is a much lower upfront payment, particularly for buyers with an existing property (see chart). For buyers with an outstanding loan, the scheme gives them more time to dispose their existing properties and manage their asset. Subsequently, the buyer may now borrow up to 80%, subject to loan eligibility, instead of the maximum 50% LTV loan ratio he would otherwise be limited to under the conventional scheme.
The stay-then-pay programme would give buyers more time to manage their finances, including a one-year saving in interest payment, says CapitaLand.
Buyers exercise the option upon paying the 10% upfront payment, and they have to fork out the normal stamp duty plus additional buyer’s stamp duty where applicable. They have 12 months to complete the sale.
Graphic by Kim SY
Other schemes in the market
Schemes offered by developers have come under the spotlight recently. In May, the Controller of Housing axed the specimen cheque scheme at GEM Residences. The developer had initially issued cheques of $7,500 and $10,000 which can be used to offset booking fees. URA thwarted the plan as it is akin to circumventing of the minimum 5% cash downpayment, meant to encourage buyers to deliberate carefully before taking up the option to purchase.
In another high-profile case, the Controller of Housing has also disallowed a scheme at Lloyd Sixtyfive that lets buyers stay or rent out their units for two years, from the date of the Temporary Occupation Permit (TOP), before committing to purchase them. As the property is uncompleted, the scheme was said to violate the typical validity period of the option to purchase.
For d’Leedon and The Interlace however, the stay-then-pay scheme is considered a private treaty between buyer and seller as both projects have attained both the Certificate of Statutory Completion and legal completion.
CapitaLand faces $10.8 million in extension charges in the second half of 2016 for the unsold units at d’Leedon and The Interlace. Other developers facing similarly hefty extension charges or ABSD have also dangled discounts.
Wheelock Properties rolled out the “ABSD assistance package” at Ardmore Three on April 13 comprising a 15% discount and a 15% ABSD rebate. It has since moved at least 32 units at the project. Separately, Wing Tai Holdings is understood to have offered a 6% commission to agents for The Crest in April and May.
Prices at d'Leedon start from $1.2 million
CapitaLand’s 15% discount extends to a majority of the units at The Interlace and d’Leedon. Although four-bedders accounted for the majority of the balance unit at d’Leedon, there is still a mix of one- to three-bedroom units available, according to CapitaLand. Prices at d'Leedon start from $1.2 million for one-bedders, $1.44 million for two-bedders, $2.08 million for three-bedders, and $2.37 million for four-bedders.
Situated in prime district 10, d’Leedon is the legacy of internationally renowned architect Zaha Hadid. Completed in October 2014, the project comprises 1,703 condo units and 12 semi-detached houses.
Meanwhile, all the available units at The Interlace are three-bedders or larger with prices starting from $2 million for a three-bedroom with family unit and $2.31 million for a four-bedroom unit.
The Interlace is a 1,040-unit condominium located on Depot Road, bounded by the Southern Ridges to its south. Known for its interlocking blocks, the project was designed by architect Ole Scheeren and was completed in 2013.
d’Leedon is the legacy of internationally renowned architect Zaha Hadid