Understanding Progressive Payment for The Orie: A New Launch in Singapore

Considering purchasing a unit at The Orie? As the first new condominium in Toa Payoh in eight years, The Orie presents a unique opportunity for homeowners seeking modern living in a mature estate.

Developed by reputable names—Frasers Property, City Developments Limited (CDL), and Sekisui House—this 777-unit leasehold development offers a range of unit types, from 1-bedroom + study to 5-bedroom apartments, catering to diverse lifestyle needs.

Buying a new launch property in Singapore, such as the highly anticipated "The Orie," involves understanding the financial commitment that comes with it.

All new launches in Singapore are purchased via the Progressive Payment Scheme. It is similar to an installment plan for buildings under construction. Instead of paying full price the moment you commit to purchasing a unit, the progressive payment scheme staggers your payment to align it with construction milestones.

This article will guide you through how progressive payment scheme works for The Orie and what you can expect to pay at different stages, from signing the sales agreement to collecting your keys.

What is the Progressive Payment Scheme (PPS)?

The Progressive Payment Scheme allows buyers of uncompleted properties to make payments in stages based on the progress of construction. This staggered approach helps manage cash flow and reduces the immediate financial burden on the buyer.

If you are planning to purchase a Building Under Construction, this is how your timeline would look like:

How Does Progressive Payment Scheme Work for The Orie?

When purchasing a unit at The Orie, payments are divided into several stages:

• Booking Fee: 5% of the purchase price is paid upon signing your Option To Purchase (OTP).
• Sales & Purchase Agreement (S&P): The remaining 15% of your down payment is paid upon signing the S&P, along with Buyer’s Stamp Duty (BSD) and Legal Fees.
• Foundation Completion: You would require to pay down 10% once foundation has been completed. Out of this 10%, 5% would come as cash or CPF from you and the last 5% will be part of the 75% bank loan you are eligible to take.

Payments will then continue as construction milestones are reached, as mapped out in the table below.

Estimating Costs for The Orie

According to website Newlauncher, here are the current available balance units left for The Orie:

Assuming you are looking to get a 3 Bedder Dual Key at $3,000,000, your payment milestones will look like this:

• Booking Fee (5%): SGD$150,000
• Downpayment (15%): SGD$450,000
• Buyer Stamp Duties: SGD$119,600*
• Legal Fees: SGD 3,500*

*Both buyer stamp duties and legal fees are calculated using our Reverse Affordability Calculator.

• Subsequent Payments: 80% of property price, after deducting 5% Booking Fees and 15% Downpayment *For ease of calculation, we took an average 3% interest rate. Do note that for Progressive Payment Scheme, most banks only offer a floating rate package.

Benefits of the Progressive Payment Scheme

• Cash Flow Management: Spread out payments reduce the immediate financial burden.
• Consumer Protection: Payments linked to construction milestones ensure that developers remain committed to project timelines.

Risks to Consider

• Construction Delays: Any delay in construction could affect your financial planning.
• Market Changes: Fluctuations in interest rates during the construction period may impact loan repayments.

Conclusion

Understanding the Progressive Payment Scheme is crucial when investing in a new launch property like The Orie. By knowing what to expect at each stage of the payment process, you can better plan your finances and ensure a smooth journey from purchase to key collection.

If you're considering purchasing a unit at The Orie or any new launch property in Singapore, consult with a mortgage expert to explore your financing options and ensure that the Progressive Payment Scheme aligns with your financial goals.