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How Property Developer’s Discount Affect the Appeal of New Launches Versus Resale Private Properties (Guest Post)

How Property Developer’s Discount Affect the Appeal of New Launches Versus Resale Private Properties (Guest Post)

What is the difference between the appeal of new launches and resale private properties with Property Developer’s Discount?

A guide to purchasing a resale private property in Singapore

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @kyith and has 1102 followers.

With a Property Developer’s Discount, would that affect the property market? On 29th Sep, URA has announced that they will restrict the re-issuing of options to purchase (OTPs) to the same buyer for the same unit within 12 months of expiry.

These new restrictions written into the law would:
Restrict developers from providing an upfront agreement to buyers to re-issue the OTP and

Restrict developers from re-issuing the OTP for the same property to the same buyer, within 12 weeks after the expiry of the earlier OTP
Sometimes, when you are not in the industry, I did not comprehend the ramifications of these changes. My friend has to explain to me what it all means.

Typically, when I buy a property, the transaction starts with obtaining an option to purchase or OTP and a deposit of 1 to 5% of the property price. I would have 14 to 21 days to exercise the OTP, meaning I would have to cough out the rest of the amount needed for the downpayment.

If I do not do that, the OTP will lapse. If I put down a 5% deposit, I would forfeit 25% of the deposit. If I put down 1%, I would forfeit 100% of the deposit.

The issue is…. some developers decided to play around with this OTP.

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