Tag Archives: The Sail

Singapore luxury property: A strong long term investment

Posted on 11 Jun 2011 | Comments Off on Singapore luxury property: A strong long term investment

The most costly landed properties in Singapore are on Sentosa Island.

Landed luxury properties are still hot and in demand due to scarcity of land in Singapore especially in prime areas. The costliest landed properties in Singapore are in Sentosa where sites are said to have exchanged hands for more than $2400 (US$1,95) psf. This is also because there is no restriction to foreign buyers purchasing land in Sentosa, which is not the case in the rest of Singapore. Foreign investors are also buying into the Singapore luxury segment as Asian countries introduce more measures to curb investment demand. China has been imposing the most measures to curb property prices and ever since we have been seeing more Chinese buying into luxury properties in Singapore in areas such as Marina Bay and Sentosa. However due to the Singapore government recently introducing new measures to stabilise the market, luxury real estate is seen as more of a longer term investment. With a strong economy, good rental yields and governance in place, Singapore is in an attractive location for foreign investors. Tourism is also increasing with more retail and hotel sectors thanks to Marina Bay Sands and Sentosa. With the Singapore economy continuing to grow and the inflow of foreigners into Singapore, the luxury segment is still a good buy.

Is the Singapore market cooling off?

Since the introduction of the new set of measures in January, sales volume has slowed slightly comparing to last year but prices have still been increasing at a healthy rate. The government’s intention is not to crash the market but to stabilise it. Prices of suburban properties (mass market) may correct about 5 per cent over the next year because of the large number of apartments in the pipeline. However the luxury segment will still hold well and climb up in price at a slow but healthy rate due to demand and supply. Expect the market response to remain positive due to the cheap credit environment and continued wealth increase because of the booming economy and wealth created from the en-bloc transaction from projects that are not priced too high.

The best opportunities and investment strategies in Singapore

With the near completion of Marina Bay Financial Centre, Ocean Financial Centre and Asia Square 1 and 2 will push up demand for residential properties in Marina Bay, such as Marina Bay Residences, Marina Bay Suites, The Sail and One Shenton. Prices have still not been realised yet in the Marina Bay area if you compare it with other luxury apartments outside the Bay area.

It would also be a good time to jump into industrial properties which have just started picking up in price and rental over  the past 2-3 months.  The active investment market for industrial properties in the first quarter is a good sign for demand in this sector.  However prime warehouse space is still more affordable than in Hong Kong and still a good opportunity if you’re looking into investing in Singapore. Industrial property that is still a good buy would be Pantech Business Hub (next to the port) and the Macpherson area.

Source : SEAPR – 8 Jun 2011

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Unit at The Sail @ Marina Bay hits $2,999 psf

Posted on 2 Jun 2011 | Comments Off on Unit at The Sail @ Marina Bay hits $2,999 psf

Residents of the 1,111-unit The Sail @ Marina Bay enjoy a spectacular view of Marina Promenade.

There has been a flurry of transactions at The Sail @ Marina Bay, with prices playing catchup with those at Marina Bay Residences (MBR).

Last month, a unit at MBR hit an alltime high of $4,368 psf. A 2,368 sq ft apartment on the 46th floor was sold for $10.3 million on April 15. This trumped the previous record of $3,790 psf, which was achieved when a 1,959 sq ft unit on the 46th floor was sold for $7.2 million in Sept 2010.

At the 1,111-unit The Sail @ Marina Bay, prices breached the $3,000 psf level for the first time this year, when a 1,184 sq ft unit on the 61st storey was sold for $3.6 million ($3,040 psf) on April 4. Prices peaked in April 2008, when a 1,033 sq ft unit was sold for $3.5 million ($3,387 psf).

The two condominiums are located along Marina Boulevard and enjoy spectacular views of Marina Promenade. MBR is a 55-storey, 428-unit luxury waterfront condo located within the Marina Bay Financial Centre, a mixed development built by the consortium of Hongkong Land, Keppel Land and Cheung Kong (Holdings). The condo was completed last year. Meanwhile, The Sail, developed by City Developments and AIG Real Estate, was completed in 4Q2008, at the height of the global financial crisis.

Desmond Tan, group director of Dennis Wee Realty, says, “There is strong demand for both The Sail and MBR, as they are the only two condos with a good bay view. MBR commands a better price than The Sail, as it is farther away from the financial centre and nearer to the integrated resort. MBR is also newer. In terms of monthly rental, a studio unit at The Sail can fetch about $4,000, while a one-bedroom unit at MBR can command between $4,500 and $4,800.”

According to a private investor who owns several units at The Sail, “there’s no doubt that The Sail currently offers the best value for money. That’s why it continues to be the most highly transacted of the properties in the area”.

Between April 29 and May 10, The Sail saw three transactions, with prices ranging from $2,503 to $2,999 psf, according to caveats lodged with URA Realis.

A 2,077 sq ft unit on the 59th floor was sold for $6.23 million ($2,999 psf) on April 29. This represents a 169% gain over the last transacted price of $2.3 million ($1,116 psf) in 2004.

Subsequently, a 1,797 sq ft unit on the 16th floor changed hands for $4.5 million ($2,503 psf) on May 4.

A third transaction was for a 613 sq ft unit on the 24th floor, which was sold for $1.57 million ($2,559 psf) on May 9. This represented a 50% gain over the last transacted price of $1.04 million ($1,701 psf) in April 2007. Prior to this, the unit sold for $921,000 ($1,501 psf) in January 2007 and $726,240 ($1,184 psf) in December 2005.

Tan says, “Asking prices at The Sail are $3,200 to $3,500 psf currently. Most buyers are foreigners. We see quite a few buyers from China and Hong Kong.” He adds that the strong prices at MBR will have a positive impact on condos at One Shenton and The Cliff, al- though it is hard to quantify the extent of the impact, as “there is a big difference” in the view from condos along Shenton Way and from those at Marina Boulevard.

The latest transaction at the 341- unit One Shenton was for a 581 sq ft unit on the 20th floor, which changed hands for $1.28 million ($2,202 psf) on May 9. Prices at the condo hit a high of $2,757 psf in 2007, when a 1,894 sq ft unit on the 44th floor was sold for $5.2 million. The condo was developed by City Developments and completed earlier this year.

Another project completed this year is The Clift along Mccallum Street, a short walk from the Tanjong Pagar MRT Station. The latest transaction at the 312- unit condo developed by Far East Organization was for a 527 sq ft unit on the 17th floor. It was sold for $1.05 million ($1,998 psf) on May 9, representing a 44% gain over the last transacted price of $727,000 ($1,378 psf) in 2007. Prior to that, the unit sold for $577,786 ($1,095 psf) in 2006.

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Source : TheEdge – 2 Jun 2011

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

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