S$5m suites set for pre-sale

PUBLISHED : Wednesday, 21 November, 2007, 12:00am
UPDATED : Wednesday, 21 November, 2007, 12:00am

HK giants in S$4b project in Singapore's Marina Bay

Marina Bay Suites in Singapore, an upscale residential project in the new core business district, is scheduled for pre-selling early next year at asking prices of at least S$5 million (HK$27 million) each.

Hongkong Land Holdings, Cheung Kong (Holdings) and Keppel Land invested S$4 billion to develop the residential tower, which is part of phase two of the Marina Bay Financial Centre development.

The 65-storey residential tower will provide 223 units ranging in size from 1,500 square feet to 2,600 sq ft. Also on offer is a single-level penthouse and two duplex penthouses with private swimming pools. The project is scheduled for completion in 2011.

Phase one of the development included the 428-unit Marina Bay Residences launched in December and sold out in three days. At the time of the launch prices ranged from S$1,600 to S$3,100 per square foot.

But property prices in Singapore had risen sharply since the launch, and deals in the secondary market had already seen prices at Marina Bay Residences rise to a range of between S$3,000 and S$3,500 per square foot, said Kan Kum Wah, the head of residential marketing at Marina Bay Financial Centre.

'The asking prices of Marina Bay Suites will be slightly lower than prices in the secondary market. We would like buyers to enjoy capital value growth,' he said.

According to the Urban Redevelopment Authority, prices of private residential flats rose 8.3 per cent in the third quarter, matching growth in the second quarter. Property prices have increased by 22.9 per cent from the end of last year to the end of the third quarter.

But Mr Kan said property prices in some prime areas had jumped as much as 25 to 30 per cent. 'The local demand for residential [units] remains strong, while the Marina Bay development is expected to attract plenty of expatiates,' he said. 'For example, Standard Chartered Bank's new office in Marina Bay Financial Centre will comprise about 10,000 staff, which will bring residential demand in the area.'

He expects prices of high-end residences will rise 10 to 15 per cent next year.

Ong Choon Fah, an executive director at DTZ (Singapore), said: 'Property prices of high-end residential [units] have gone up significantly in last few years. The prices are still growing but in a steady trend.'

Ms Ong believes Marina Bay will be the hot spot in Singapore as it is the new commercial and entertainment centre. 'Based on current development sites in the area, I don't think there will be a lot of residential supply in the next few years.'

She expects the growth in property prices in the area will outperform other areas in Singapore.

Private rentals in the city state were up 11.4 per cent in the third quarter, outstripping the 10.4 per cent growth in the second quarter. Rents were now 32.2 per cent up on levels fetched at the end of last year and were currently yielding between 3.5 per cent and 4.5 per cent, said Mr Kan.

Marina Bay Suites has yet to be granted final approval from the Singapore government, but Mr Kan said this would be a mere formality and was expected by the middle of next month, when the development will be pre-sold.

Priced at the top end of apartment offers in the city, the Marina Bay Suites are expected to attract interest from foreign investors who are active in Singapore's high-end residential market and account for up to 40 per cent of deals in Marina Bay Residences, of which mainland and Hong Kong investors accounted for 15 per cent.

Marina Bay is an extension of the core business area in Singapore.