High-end developer SC Global is launching a payment scheme for Hilltops luxury condominium in Cairnhill, completed in 2011 but only 20 per cent sold.
The company’s “enhanced purchase plan” comes after a slew of creative payment schemes used by developers of late. Some have been successful, such as a deferred payment scheme at OUE Twin Peaks which has helped it sell over 160 units.After a long hiatus, SC Global is seeking to sell its units now as “the market is in a mood to buy into such schemes. Buyers are looking into the next property cycle. Under the latest plan, buyers pay an upfront payment equal to 20 per cent of the unit price, and are given a two-year option to purchase the unit at a price fixed today. A total of 30 units owned and being leased out by SC Global are available under this scheme.
During the two years, buyers get an annual return of 10 per cent on the downpayment – thanks to tenancies managed by SC Global. So, a 20 per cent payment on a $3 million unit, or $600,000, would generate an annual income of $60,000 a year for the buyer.
Should the buyer eventually decide not to exercise the option, the downpayment is forfeited although he gets to keep the rental income.
Hilltop has 241 units in all, comprising two and three bedrooms from 800 sq ft to 1,700 sq ft. Prices are from $2.5 million to $6 million, or about $2,700 per sq ft (psf) to $3,000 psf – much lower than around $4,000 psf when its units were first sold in Oct 2007.