Tag Archives: Interest Absorption Scheme

Hundred Trees condo priced at $895 psf

Posted on 25 Sep 2009 | Comments Off on Hundred Trees condo priced at $895 psf

CITY Developments Ltd (CDL) is said to have begun selling the first phase of the 956-year leasehold Hundred Trees condo in the West Coast area at an average price of $895 per square foot.

Buyers can opt for an interest absorption scheme (IAS) – but they’ll have to pay 2.5 per cent more.

About 150 of the project’s total 396 units are believed to have been released under the first phase.

Sales to former owners of the Hong Leong Garden Condominium – from whom CDL bought the site through a collective sale in 2007 – began yesterday. CDL staff as well as special guests were also invited to purchase units at Hundred Trees yesterday.

The preview for other buyers who had pre-registered interest in the development begins today.

BT understands that one and two-bedroom apartments, and two bedroom-plus-study units make up around 40 per cent of total units in the 12-storey condo.

Prices of one-bedders, which are about 485 square feet, begin from over $500,000. Two bedders range from 690 to 786 sq ft while two-plus-study units are between 915 and 1,227 sq ft. Continue reading →

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Posted in Developers, New Launches, Property Price

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Pre-emptive measures to further cool property market

Posted on 21 Sep 2009 | Comments Off on Pre-emptive measures to further cool property market

THE measures taken by the Government to cool the residential real estate market are laudable. It is hoped that cool and level heads will prevail.

However, the interest absorption scheme (IAS) and interest-only loans are arguably offshoots of the disallowed deferred payment scheme (DPS). Buoyant trading and investment in property are also due to the current low interest rate environment, coupled with a dearth of attractive investment avenues over which we have little control.

Given the creativity and astuteness of property developers in Singapore (substituting IAS for DPS is a case in point), measures should also be adopted on a pre-emptive basis.

– Increase down payment ratio to 10 per cent

To nip the problem in the bud, there is one measure that is truly intuitive, and wholly within the Government’s control, which is to increase the cash down payment ratio to 10 per cent from the current 5 per cent of purchase price.

An increase in down payment ratio makes sense and is prudent. If a buyer wants to buy a property for $1 million but is unable to fork out $100,000 (or rather an incremental $50,000) in cash, he is not in a position to take on a leverage of $800,000. Continue reading →

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Posted in Property Market / Real Estate

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