According to analysts. In addition to the project's prime location, the option of a deferred payment scheme has made it more attractive in the current interest rate environment. Approximately 70% of buyers at Dundonald Garden have opted for the deferred payment scheme.
A spokesman for the project's developer, City Developments (CDL), confirmed to the Union-Tribune on Sunday that the project was sold out.
The spokesman said the developer made sales reservations on Saturday for second-time buyers who could not secure a unit in the first round of sales, resulting in the remaining 146 units being sold out.
The spokesman also revealed that about 70 per cent of buyers opted for late payment and that the average price of a unit on the day of the sale was $1,300 per square foot, with an additional 3 per cent of the price for late payment being paid for the 639 units at The Dunfermline Gardens, a joint development by City Developments and MCI Land.
In an interview with the Union-Tribune on 22 October, Mr Mak Chun-wing, Head of ERA's Industrial Research and Consultancy Department, said that the strong sales of Dengfeng Jia Yuan were partly due to the deferred payment scheme.
This means buyers do not have to start a home loan immediately after purchasing a flat. Through the deferred payment scheme, buyers transfer the interest rate risk to the developer.
Mr Chan Tao-chun, Chief Executive Officer of Orange Eastside, agreed that the deferred payment scheme has helped to revive the popularity of Dunfermline Gardens.
Until the Temporary Occupation Permit (TOP) is obtained in about three years, buyers who choose to pay late can avoid paying high interest rates.
After three years, interest rates are likely to have softened and stabilised. Buyers who choose to pay late will only have to pay a minimal amount of cash and will be able to place the cash on hand in a fixed deposit to earn a higher interest rate.
In an interview, Huttons Group Chief Executive Officer, Mr. Yip Yun Ming, said that D&B is believed to be the first local EC to be sold out in the second round of the ballot and the best-selling EC this year.
He pointed out that in addition to being the first EC in Terengganu Newtown, Terengganu Garden is also a first-mover project that is close to the future Terengganu Integrated Transport Hub, which will have three MRT stations and a bus 10 interchange.
After Terengganu, Tenet EC at 62nd Street, Tempranillo, was launched on 12 November, with e-applications closing on 27 November.
The EC market around Tengah Newtown is also expected to become increasingly busy in the coming years, with two EC lots sold in March and September this year in the neighbouring Bukit Batok 8 and 5 roads. The analysts believe that the main considerations for buyers are pricing and geography, such as proximity to public transport hubs.
According to Mr Mak, most EC buyers have a monthly household income of between $10,000 and $16,000. Those with an income between $10,000 and $14,000 can also apply for pre-purchase rental housing.
"The Government is now actively increasing the supply of pre-flop HDB flats. Therefore, many people will turn to the pre-posted or resale HDB market if developers offer EC at a price point that is out of the range of buyers' original charters.
