It’s a fact. A buyer whom has committed 51 units at The Suites @ Central had problems paying up to Keppel Land as the developer calls for payment.
The Suites @ Central (District 9), formerly known as Ritz Residences is a 157 freehold condominium apartments situated at Devonshire Road next to The Metz, The Beaumont and Meyer Mansion. The joint developers are Keppel Land and Chip Eng Seng, and is about to receive its Temporary Occupancy Permit.
The bulk buyer has wrote in to Keppel for an extention of 6 months for the payments of his 51 units. Keppel has granted the request on the condition that buyer pays $500,000 monthly during the extended period.
Apart from the bulk buy transaction, there’s two other buyers who’re still arranging for payments for 5 of their units.
With the case from The Fernhill surfaced a few days ago and now this, we can see the fragility and the consequences of Deferred Payment Scheme (DPS) ballooning for the next few months when many new projects are about to receive its TOP status.
Apart from Wheelock Properties which hasn’t accepted any form of DPS during the availability of the scheme, most buyers are on DPSas it allows them to pay for their units only upon close to completion of the residential project, easing their cash flow then.
Buyers whom took DPS has paid 20% till now. Should they haven’t secure any bank loans now, most cash tight owners would experience problem as valuation of their property would have dropped since the peak in 2007, which financial institutions (FI) wouldn’t be able to support.
Would this be a mayhem for property stocks in SGX? It’s just a few weeks of wait before we know the extent of DPS’s damage.