REIDIN, 26 May, 2017
In response to the declines
The decline in prices and transactional activity in the real estate market from mid-2014 triggered a response from developers to ease payment terms in an attempt to stimulate demand. The above graph illustrates how payment plans have progressively eased from 2013 (when more than 80% of launches had payment terms that were front ended) to 2016 when more than 55% of launches had back ended and post-handover payment plans.
Both private sector and government sector developers began to change their payment plans from being front loaded to back ended in mid-2014 as the market began to correct itself.
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