The Sail @ Marina Bay hits $2,800 psf

The completion of the upcoming Marina Bay Sands integrated resort next year and the VIP private preview of the 221-unit Marina Bay Suites have put the spotlight back on The Sail @ Marina Bay. Sales activity at the 1,111 unit The Sail has picked up pace in recent weeks. Nine transactions were done in the first week of November alone — versus 10 deals achieved for all of October. Prices achieved in the week of Oct 30 to Nov 6 ranged from $1,744 to $2,800 psf.

The Sail was the first residential project to be launched and completed in Marina Bay, and was jointly developed by City Developments and AIG. Tower 1 (the 70-storey Marina Bay Tower with the address 6 Marina Boulevard) was launched in September 2004, followed by Tower 2 (the 63-storey Central Park Tower with the address 2 Marina Boulevard) a year later. Both towers were completed in 4Q2008, in the wake of the collapse of investment bank Lehman Brothers.

Since hitting a low of $1,146 psf in April this year, transaction prices at The Sail have been on a steady uptrend. The record-high achieved in terms of price psf was in April last year, when a 1,033 sq ft unit on the 60th floor of Tower 1 went for $3.5 million, or $3,387 psf.

Most recently, a 688 sq ft unit on the 58th floor of Tower 1 changed hands at $1.9 million, or $2,800 psf, according to caveats lodged with URA Realis. This is close to the highest price psf achieved so far this year: $2,849 psf in September, when a 936 sq ft unit on the 61st floor of the same tower was sold for $2.67 million.

According to a caveat lodged in early November, a larger unit of 1,033 sq ft on the 31st floor of Tower 1 changed hands for $2.63 million, or $2,549 psf. The owner made a quick flip, after purchasing it for $2.6 mil-lion, or $2,516 psf, in August.

Just a block away is another luxury waterfront condominium — the 428 unit Marina Bay Residences, which is expected to be completed in mid-2010. The residential tower is part of the Marina Bay Financial Centre, a mixed development by the consortium of Hongkong Land, Keppel Land and Cheung Kong (Holdings). When the luxury condominium project was first previewed in December 2006, all the units were sold out at an average price of $1,850 psf within three days.

Prices have since surged, hitting a high of $2,700 psf in May last year. The latest transaction at Marina Bay Residences was a 753 sq ft unit on the 18th floor, which went for $1.65 million, or $2,199 psf. The original owner had purchased it for $1.53 million, or $2,031 psf, in July, translating into a gain of 8%.

Market expectation is that the luxury segment has room for further price growth, as prices are estimated to be 15% to 20% below the peak level in 4Q2007. Thus, it is no surprise that the consortium held the private preview of the Marina Bay Suites near the end of the year.

Source : The Edge – 29 Nov 2009