The buzz of excitement at the Marina Bay area with the opening of the US$5.5 billion ($7.5 billion) Marina Bay Sands integrated resort (IR) on April 27 is resulting in a pick-up in sales activity at the neighbouring Marina Bay Residences. The 55-storey, 428-unit upscale condominium tower is expected to be completed soon.
Prices at the 99-year leasehold high-end condo are fast approaching 2007 peak levels. Most recently, a 2,368 sq ft apartment on the 30th floor changed hands for $8.288 million, or $3,500 sq ft. The last time it hit such levels was in mid-June 2007, when a 4,489 sq ft unit on the 51st floor was sold in a sub-sale for $16.16 million, or $3,600 psf.
From March 30 to April 6, there were four transactions in the $2,531 to $3,049 psf range — the first time prices have breached $3,000 psf since December 2007, when a unit on the 25th floor changed hands for $3,080 psf.
Marina Bay Residences, next to The Sail @ Marina Bay, is one of the most actively traded properties in Singapore. The high of $3,049 psf was achieved for a 1,969 sq ft unit on the 30th floor. It was sold for $6 million, according to a March 30 caveat lodged with URA. The previous owner had purchased the unit in a sub-sale for $5.3 million, or $2,700 psf, in June 2007.
The most recent transaction at Marina Bay Residences was for a 1,055 sq ft unit on the 41st floor, which changed hands in a subsale for $2.986 million, or $2,830 psf, according to an April 5 caveat with URA. The apartment was sold in July 2007 for $2.405 million ($2,280 psf), hence the owner saw a gain of 24%.
Meanwhile, another unit, a 1,216 sq ft apartment on the 22nd floor, was sold for $3.49 million, or $2,869 psf, in a sub-sale, according to an April 5 caveat. The unit last changed hands in July 2007 for $2.86 million ($2,349 psf), hence there was a capital appreciation of 22%.
On the 14th floor, a 1,065 sq ft unit was sold for $2.7 million, or $2,531 psf, translating into a 47% gain for the previous owner, who acquired it for $1.83 million, or $1,720 psf, in January 2007. The unit was sold for $1.558 million, or $1,462 psf, in 2006, representing a 17.4% gain.
Beyond the opening of the IR, Marina Bay Residences is also seeing renewed investor interest as the second condo tower, Marina Bay Suites, is likely to release its second phase of units for sale over the next one to two weeks.
Last November, the developers had released around 90 units at Marina Bay Suites in a private preview at prices ranging from $2,200 to $2,500 psf. Another 130 units could be released in the upcoming second phase preview of the 66-storey, 221- unit Marina Bay Suites, which is said to be a more upscale version of Marina Bay Residences.
The pricing this time around will be guided by the transactions of properties in the vicinity, notes Joseph Tan, CBRE executive director for residential services. The remaining units are mostly on the higher floors and likely to fetch a higher price than those released in November, he adds. The project is expected to be completed in 2014.
At the 1,111-unit The Sail @ Marina Bay, two units changed hands for prices above $3,000 psf this year. The units were on the 58th floor of Tower 2. One was an 883 sqft apartment that sold for $2.69 million ($3,048 psf) on Feb 1, according to a caveat lodged with URA. The other was a 936 sq ft apartment that changed hands for $3 million, or $3,204 psf, in late January. From March 30 to April 6, there were three transactions, with prices ranging from $1,870 to $2,646 psf. The Sail @ Marina Bay, which was developed jointly by City Developments Ltd and AIG Real Estate and completed in 4Q2008, hit a high of $3,387 psf in 2008, when a 1,033 sqft unit was sold for $3.5 million.
Several properties sold at Marina Bay Residences are said to have hit prices above $3,000 psf, although the caveats have yet to be lodged. As the opening of the IR draws near, attention is returning to properties in the Marina Bay area like Marina Bay Residences, and it looks like prices are on an upward trend.
Source: The Edge, 29 Apr 2010
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