Unit at The Sail hits $2,990 psf

It’s easy to understand why The Sail is the most actively traded project in the prime Marina Bay area. When the 63-storey Tower Two of the 1,111-unit project was first launched in 2004, units were priced at $900 to $1,000 psf, while the first batch of 100 units released at the 70-storey Tower One a year later averaged $1,080 psf. Today, on the secondary market, owners of units with pool views are asking for $2,000 psf, while high-floor units with unobstructed views of Marina Bay and the integrated resort are commanding prices of at least $3,000 psf, say marketing agents.

“Investors would always be interested in The Sail because of the prospect of future capital appreciation,” says Amanda Yap, senior marketing director at PropNex who specialises in resale of units in the project. While the majority of investors in the development are Singaporeans, there’s also a high representation of buyers from China, Malaysia and Indonesia.

With inner-city living taking off and becoming popular among young expatriates, especially those working in the financial sector, demand for one- and two-bedroom apartments has been strong. This is because The Sail is located in the Marina Bay area and within a short walking distance to the Raffles Place financial district, Marina Bay Financial Centre and the core CBD area.

It’s also linked underground to the Raffles Place MRT station. These are the unit types that investors naturally gravitate towards.

Rental rates at The Sail @ Marina Bay range from $5.50 to $6 psf per month, estimates Yap. One-bedroom or studio apartments can command monthly rentals of $3,500 and $3,800, while two-bedroom units are $4,500 to $5,000 per month. Based on today’s prices, rental yields are around 3% per annum. Investors are however, more focused on future capital gains, notes Yap.

The Sail @ Marina Bay saw a surge in activity late last month. For Oct 26 to Nov 2, five units changed hands at prices between $1,910 and $2,990 psf, according to caveats lodged with URA Realis.

For instance, a 775 sq ft studio apartment on the second floor of Tower Two was sold for $1.48 million ($1,910 psf) on Nov 2. That represents a 49.8% gain for the seller, who bought the unit for $987,840 ($1,275 psf) from the developer in October 2005.

On the 43rd level of Tower Two, a 614 sq ft studio unit was sold for $1.57 million ($2,559 psf). The last time the unit changed hands was in a sub-sale during the previous peak of 2007, when it went for $1.44 million ($2,352 psf). This gave the first owner, who purchased the unit at the launch in 2005 for $784,090 ($1,278 psf), a capital gain of 84% in two years.

Also at Tower Two, a similar-sized studio apartment on the 23rd level was sold for $1.5 million ($2,445 psf). That was an 80.6% gain for the original owner, who paid $830,800, or $1,354 psf, for the unit in October 2006.

Some units at the development have been actively traded. For instance, at Tower One, the owner of a 67th floor one-bedroom apartment of 667 sq ft recently sold the unit for $1.4 million, or $2,099 psf. The unit last changed hands at $1.26 million ($1,887 psf) in June last year. Prior to that, it went for $1.1 million ($1,649 psf) in November 2008, not long after the unit was completed. The first owner had purchased the unit for $606,150 ($908 psf) from the de-eloper six years ago, and he enjoyed the highest gain of 81.6%.

Meanwhile, an 883 sq ft two-bedroom unit on the 59th floor of Tower One recently changed hands at $2.6 million ($2,990 psf), which is the highest psf price recorded at The Sail since September when a large 1,873 sq ft unit on the 63rd level at the same tower was sold for close to $5.8 million, or $3,080 psf. For the owner of the 883 sq ft, two bedroom unit who bought it for $2 million ($2,266 psf) in a sub-sale in March 2007, the sale represented a 32% capital gain. However, the first owner, who bought the apartment during the launch in March 2005 for $1.06 million ($1,201 psf) and sold it for $2 million two years later saw a more significant gain of 88.7%.

Source : The Edge – 22 Nov 2010