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The Government announced today the immediate withdrawal of the Deferred Payment Scheme (DPS) for property purchases in view of the strong economic and property market conditions.Deferred Payment Scheme
In Oct 1997, the Government allowed developers to offer to purchasers of uncompleted private residential and commercial properties the option to defer part of the progress payments due after the initial 20% downpayment, to a later stage.
In Nov 2001, the Government further allowed developers to defer up to half of the initial 20% downpayment up to the issue of Temporary Occupation Permit or any time before that. These DPS were introduced at a time when the property market was lacklustre and the economy was in recession.
Buoyant property market and strong economic growth
The property market has since recovered and has been growing strongly in the last few years, driven by economic fundamentals including our robust economic growth and rise in wages. In view of the current buoyant property market, the Government has decided to withdraw the DPS for the sale of uncompleted private residential, commercial and industrial properties with effect from 26 Oct 2007.
The removal of the DPS will also encourage greater financial prudence, as buyers will have to ensure that they have sufficient funds or are able to secure adequate loans from banks before they commit to buying a property.
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S'pore withdraws deferred home payment scheme
ReplyDeleteSingapore said late on Friday it would no longer allow developers to offer home buyers the ability to delay payments on up to 90 per cent of their purchases.
'In view of the current buoyant property market, the Government has decided to withdraw the deferred payment scheme for the sale of uncompleted private residential and commercial properties with effect from 26 Oct 2007,' Singapore's Urban Redevelopment Authority said on its website.
Such deferred payment plans have been key to driving the property market's growth, with up to 90 per cent of buyers in some projects opting for them. -- REUTERS