Tag Archives: The Marq

SC Global launches high-end apartment at The Marq

Posted on 17 May 2012 | Comments Off on SC Global launches high-end apartment at The Marq

Luxury property developer SC Global Developments has launched a high-end apartment at The Marq on Paterson Road.

The unit, decorated by French luxury goods designer Hermes, promises to bring a new meaning to luxury living.

This, as buying of luxury properties typically located in city and fringes has picked up.

The project will be the world’s first apartment entirely decorated by Hermes but SC Global said the 6,200 square feet apartment at its flagship development The Marq is not for sale.

The unit, which will be used only as a private hospitality apartment for private functions, symbolises the peak of luxury living.

About half of the 66 freehold units situated in two 24-storey towers at The Marq put up for sale have been taken up since its launch in the second quarter of 2007.

It added four out of 10 buyers are foreigners.

SC Global CEO Simon Cheong said: “For high-end apartments, it’s for the discerning few. We don’t have many apartments. We just completed the project and we don’t really have a launching programme. It’s only by appointment only, as far as SC Global is concerned. The luxury market is a very different market altogether.”

Sale of luxury properties in the city area, which has softened in recent months, showed a pick-up last month.

In April, the number of new homes sold by developers in the city doubled from the figures in March. But analysts are mixed on the buying trend of these more expensive apartments for the remaining 2012.

Nicholas Mak, head of research at SLP International, said: “Because of the government measures like additional buyer’s stamp duty, where there is additional stamp duty for foreign purchases… the core central region where there is high foreign participation is going to remain fairly low for the next half a year or so.”

Analysts said the narrowing price gap between luxury and mass market properties in recent months prompts some to take a second look at properties in the city and fringes.

Chua Yang Liang, head of research (Southeast Asia) at Jones Lang LaSalle, said: “There is this motivation for Singaporean buyers to go into the market primarily because of the price gap. The gap of pricing between the high end market and the mass market has narrowed, compared to the historical high when the series started in 2007. The gap of the two markets then was about 2.5 times in favour of the high-end market. Right now, we are looking at about 1.4, 1.5 times only.”

According to URA Price Index, prices of non-landed properties in the central region and city fringes fell 0.6 per cent in the first quarter while prices for private residential properties in the suburbs increased by 1.1 per cent.

Source : CNA – 16 May 2012

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Posted in Developers, Luxury Property, Property Market / Real Estate

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High-end market on a downward spiral?

Posted on 9 May 2012 | Comments Off on High-end market on a downward spiral?

Sluggish demand for high-end homes has lowered developers’ profits of late. If this trend continues, the luxury market could eventually hit rock-bottom in the days to come.

With prices of luxury homes expected to fall by 15 percent this year, foreign demand is expected to dry up due to tightening measures and economic uncertainties.

Early on, property developers are feeling the pinch over this weakening outlook.

Recently, SC Global warned of a S$10 million loss for Q1 2012, following weak profits recorded from its ready-for-occupancy projects. In fact, not even half the units released at The Marq on Paterson Hill and Hilltops were sold.

Ho Bee’s official figures revealed a shocking 71.6 percent plunge in Q1 2012 earnings to S$15.4 million. Its luxury projects, Turquoise and Seascape at Sentosa Cove, have recorded sales at 46 and 28 percent respectively.

The weakening interest in the high-end market may be attributed to the implementation of a 10 percent Additional Buyers’ Stamp Duty (ABSD) in December last year, which deterred foreign buyers.

Foreign buyers contribute significantly to the market, accounting for 40 percent of property transactions last year in prime district 10, which covers the Tanglin and Ardmore areas. Driving foreign buyers from the market will affect locals who have sold their homes to foreigners, as they cannot recycle their capital easily.

Savills Research has predicted that foreign buyers will account for a mere 15 percent of luxury homes sales this year. The ABSD immediately reduces return on investments (ROI) because these fees have to be paid upfront.

Singapore is considered the most expensive market for high-end properties in Asia, with buyers from China, Indonesia, Malaysia and India significantly contributing to the luxury home market.

However, a number of foreign buyers have put off their plans to buy multi-million dollar properties to avoid the ABSD. At the same time, the luxury market will likely see a surge in the supply of new units, putting further pressure on prices.

Even rentals are coming down as a number of expats no longer receive their usual housing allowances.

Moving forward, the luxury segment will likely suffer as the price gap between the mid-tier and luxury segment narrows.

source : PropertyGuru -9 May 2012

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Posted in Luxury Property, Property Market / Real Estate, Property Price

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