Marina Bay condo costlier than landed homes but early-bird
buyers see big returns
By Chua Kong Ho
Oct 16, 2005
The Straits Times
PAWNSHOP owner Lam Thao Shiou took one look at the scale model of
The Sail @ Marina Bay last November and bought a three-bedroom
apartment on the 42nd floor, facing Marina Bay.
The 48-year-old owner of Teck Hing Pawnshop in Geylang paid $1.1
million or $946.50 per sq ft for his new home in Tower 1 of
Singapore's most expensive 99-year leasehold development, which has
1,111 units.
And when apartments in the 63-storey Tower 2 were launched for sale
two Fridays ago, eager buyers snapped up 200 units in one hour,
paying $1,080 psf on average. Those who bought choice units on the
higher floors reportedly paid $1,700 psf.
At those prices, they could have bought homes in prime, freehold
projects such as Grange Residences, The Cosmopolitan and One Oxley
Rise.
So is The Sail worth the money?
Yes, if you are an early-bird investor like Mr Lam. If he were to
sell his unit at a conservative $1,100 psf today, he would make a
cool $180,000 before fees and duties.
He could do better. Some owners are asking and getting $1,100 to
$1,500 psf in the secondary market, according to agents The Sunday
Times spoke to.
But some analysts say it is difficult to justify the prices.
Mr Lee Tang Keat, associate director for auctions and sales at
property consultancy Jones Lang LaSalle, said: 'It's crazy. Most
people are buying on a future hope that prices will go up
later.'
They might be right. The condominium is in the heart of the new
business and financial centre taking shape in Marina, and is across
the proposed integrated resort. The condo and the resort are
scheduled for completion around 2009, a year before the first
offices in the centre are expected to be ready.
But consultants say that those who buy at higher prices in the
later phases or on the secondary market may find it difficult to
sell their units should foreign buyers flock to another 'hot'
property market, such as India.
That is because there are only so many Singaporeans with the same
sort of buying power.
But for the buyers, none of this matters.
Pawnshop owner Mr Lam told The Sunday Times: 'We're well aware that
we can get something twice as big or freehold for that price.
'But we went in with our eyes open. It's difficult to find a place
in the heart of the city with a nice view of the Esplanade.'
Madam Cheng Chih Hua, 54, who owns a construction company, bought a
65th-floor studio apartment in Tower 1 on the secondary market last
month. At $1,200 psf, she is paying 26 per cent more than the
original owner. But she still thinks it's a bargain because of the
high floor and spectacular view.
'I'm expecting a big jump in property prices, because Singapore is
just too far behind neighbouring markets like Hong Kong. It cannot
go anywhere but up,' she said.
Other buyers obviously feel the same way. The buyers' list of The
Sail reads like a who's who of Singapore's corporate and social
scene.
There's 2G Capital co-founder Tommie Goh Thiam Poh, who spent $3.7
million on a 68th-storey unit in Tower 1.
A check on the caveats filed with the Singapore Land Authority
shows that his neighbours include business partner Gay Chee Cheong,
heart surgeon Leslie Lam, former Singapore Airlines senior
executive vice-president Michael Tan Jiak Ngee and Mr Deepak
Sharma, chief executive of Citigroup Global Wealth Management for
Asia-Pacific and Middle East.
Other buyers include Hotel Phoenix general manager Noel Hawkes and
his wife, Nancy. They bought two studio apartments, one in each
tower because 'everyone was buying', Mrs Hawkes said.
Ms Teo Sway Heong, wife of Osim founder Ron Sim, bought three units
in Tower 1, while British Chamber of Commerce president Jonathan
Asherson bought one on the 41st storey.
Jones Lang LaSalle's Mr Lee said: 'These are the A-list people who
got the choice of the best units. They're in the best position to
make a lot of money if they exit within the next few years.'