Apartment at The Marq fetches $5,842 psf, sets a new price record

[mr funny]

http://www.businesstimes.com.sg/sub/news/story/0,4574,439445,00.html?

Published May 18, 2011

Apartment at The Marq fetches $5,842 psf, sets a new price record

By KALPANA RASHIWALA


(SINGAPORE) A new record has been set for the price of a private residential property in Singapore. Sources say that a four-bedroom apartment at SC Global Developments' The Marq on Paterson Hill recently fetched $5,842 per square foot, surpassing the previous high of $5,600 psf set in October 2007 at The Orchard Residences.

The latest transaction at The Marq also sets a new benchmark for the project, surpassing the $5,262 psf that was achieved in 2007 for a 16th floor unit which was sold for $15.8 million, according to caveats data. Both units are of the same size, 3,003 sq ft.

The latest record breaker at The Marq, which involves a lump sum price of $17.5 million, is understood to be on the mid-to upper levels of the 24-storey project but is not a penthouse unit. The freehold development received Temporary Occupation Permit (TOP) earlier this year and with the latest transaction, slightly over 40 per cent or 28 of the development's 66 units have been sold.

The penthouse unit at The Orchard Residences that held the previous record price of $5,600 psf is on the 53rd level and involved a lump sum price of $28.269 million. However, a caveat for that 5,048 sq ft unit does not appear to have been lodged, probably because the high net worth party who bought the apartment did not take any financing for the purchase and wants to preserve anonymity.

The Orchard Residences, which received Temporary Occupation Permit late last year, is on a site with a 99-year leasehold tenure starting around March 2006.

Pointing to a dearth of condo/apartment transactions above $5,000 psf since the previous property boom in 2007, Jones Lang LaSalle's head of residential and national director Jacqueline Wong attributes this to a lack of new project launches in the ultra-luxury segment, as well as the fact that demand from foreign investors in this segment has yet to recover to the level seen in 2007 because of the current state of the global economy.

'I don't recall any launches at $4,500 psf or higher, post 2007. Right now there are five new projects in the prime Ardmore Park area whose developers could launch them if they chose to - but they haven't,' she added.

Analysts say that developers' strong balance sheets and the difficulty they face in finding replacement land banks in the luxury residential sector at viable prices are some reasons for developers to hold back launches in this market segment.

'If any developer were to launch a new condo at above say $5,000 psf today, demand will likely come from owner occupiers rather than those buying with a view to collecting rental income because the yields won't be attractive,' JLL's Ms Wong said.

[mr funny]

http://www.businesstimes.com.sg/mnt/media/image/launched/2011-05-18/krunit18.jpg

[SBR]

Full story at http://sbr.com.sg/residential-property/news/take-sneak-peek-inside-singapores-most-expensive-apartment-ever

[blackjack21trader]

So cheap? I was looking at S$8000psf at least.:doh:

[propertychap]

Does this mean property prices in Novena and Newton will go up as well?

[stalingrad]

Hi, people, get real. one transaction does not a market make. If you happen to own a unit in the same project, can you sell it at the the same price within a short period of time? no, you have to wait until your beard has turned white to get just one phone call.

don't be fooled by this marketing gimmick which ST and BT willingly take part in.

the luxury condo market in singapore is dead and buried. Period.

the definition of a hot market is what Vancouver is experiencing: every unit put on the market is sold within 2 weeks. that is hot. by that standard, singapore condo market is just barely alive - most units put up for sale have to wait 3 to 6 months to get even an inquiry. most actions happen in the new launches. this market is built on quicksand, and don't wade in unless you are crazy.

[amk]

the luxury condo market in singapore is dead and buried. Period.

staling, look at the psf performance of your favorite project in the month of Apr 2011 ;)

DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,821,500 1,485 Strata 1,899 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,784,375 1,485 Strata 1,874 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,700,000 1,464 Strata 1,844 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,750,000 1,485 Strata 1,851 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,900,000 1,604 Strata 1,808 Apr-11

[stalingrad]

staling, look at the psf performance of your favorite project in the month of Apr 2011 ;)

DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,821,500 1,485 Strata 1,899 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,784,375 1,485 Strata 1,874 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,700,000 1,464 Strata 1,844 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,750,000 1,485 Strata 1,851 Apr-11
DUCHESS RESIDENCES DUCHESS AVENUE Condominium 1 2,900,000 1,604 Strata 1,808 Apr-11
have the owners made any money? and how long have these properties been on the market? for a large project with 200 plus units for sale, only five sold in one month?

as I said, dead and buried.

[devilplate]

got chance to cheong only if 4yrs SSD is removed:2cents:

[amk]

for a large project with 200 plus units for sale, only five sold in one month?
this project has only 120 units lah. with the current CM, 5 a month with an increase of 100psf is not bad.

ur wonderful carabelle of 338 units had a grand total of 1 unit sold in one month ok ? ;)



as I said, dead and buried.
your way of logic is very funny. how did the above data in any way support your assertion ? :cool: The real reason for the active transaction for this one despite the CM is very simple. It's just not what you think.

[devilplate]

very funny

one silly transaction dun mean anything....

wake up folks:p

[ysyap]

very funny

one silly transaction dun mean anything....

wake up folks:pOne silly transaction only sets the momentum and space for the next transaction to be more silly... but it won't come so soon lah unless SSD is removed... :D

[stalingrad]

this project has only 120 units lah. with the current CM, 5 a month with an increase of 100psf is not bad.

ur wonderful carabelle of 338 units had a grand total of 1 unit sold in one month ok ? ;)


your way of logic is very funny. how did the above data in any way support your assertion ? :cool: The real reason for the active transaction for this one despite the CM is very simple. It's just not what you think.
carabelle has only 19 units for sale, many of which are actually same units. DR has 200 units for sale according to propertyguru.com, the last time I checked.

[DaytonaSS]

very funny

one silly transaction dun mean anything....

wake up folks:p

its easlier to assume pple whom are rich are idiots

[stalingrad]

One silly transaction only sets the momentum and space for the next transaction to be more silly... but it won't come so soon lah unless SSD is removed... :D

and SSR will never be removed, given the election result. MBT even lost his job for letting the housing market run out of control.

[stalingrad]

its easlier to assume pple whom are rich are idiots
no, what I saying that these transactions are outliers, meaning that they may not be clean market transactions with no strings attached. you get my drift?

[devilplate]

its easlier to assume pple whom are rich are idiots

they got the $$$ n bullets to play .....buy one at record psf n u follow in?:tsk-tsk:

[proud owner]

no, what I saying that these transactions are outliers, meaning that they may not be clean market transactions with no strings attached. you get my drift?

there were many such 1 off transactions at super high psf ...and then quietened ..
like the Concourse, Aalto , etc ..

after which ..many would use it to TRY to sell theirs at the same psf .. but usually fail ..

example a condo has been selling at 1300 psf ..
out of the blues a PH was sold at 2000 psf ...
now all start to market their unit at very close to 2000 psf .. but usually not successful

however .. there come some buyers who would instead buy the smaller, lower floor units .. and at say 1500 psf ..thinking its a cheap sale ...

so this strategy of a SUDDEN CRAZY sale .. may work to push the entire condo's ave psf higher ...

[stalingrad]

many of these CCR condos are just terrible buys, and make zero economic sense. their rental yield is just slightly above 2%, not even covering depreciation let alone interest charges.

in the US, the long term rental yield is close to 7%, in canada 8%. if those are the norm, why do you even what to buy into this market in Singapore.

[devilplate]

many of these CCR condos are just terrible buys, and make zero economic sense. their rental yield is just slightly above 2%, not even covering depreciation let alone interest charges.

in the US, the long term rental yield is close to 7%, in canada 8%. if those are the norm, why do you even what to buy into this market in Singapore.

wats the mortgage rates for US n canada?

[stalingrad]

there were many such 1 off transactions at super high psf ...and then quietened ..
like the Concourse, Aalto , etc ..

after which ..many would use it to TRY to sell theirs at the same psf .. but usually fail ..

example a condo has been selling at 1300 psf ..
out of the blues a PH was sold at 2000 psf ...
now all start to market their unit at very close to 2000 psf .. but usually not successful

however .. there come some buyers who would instead buy the smaller, lower floor units .. and at say 1500 psf ..thinking its a cheap sale ...

so this strategy of a SUDDEN CRAZY sale .. may work to push the entire condo's ave psf higher ...

or the buyers may be the sellers' associate or even business partners. you scratch my back, and I will scratch yours next time. SC global does need help now. not much going on with this market laggard.

[DaytonaSS]

they got the $$$ n bullets to play .....buy one at record psf n u follow in?:tsk-tsk:

My view on these above $10m transcations are pple whom have portfolios of investments, UHNW individuals. Buying 1 more doesnt matter to them. Just like going to casino and lose 100m also no problem, life goes on.

For normal pple like me with limited resources, stay 10 mins outside orchard and cost almost 1/4 the price is fine by me. i wish i can follow and am working towards that direction one day. I got 30 years to work on it ; )

[stalingrad]

wats the mortgage rates for US n canada?

the current rate for 30 years is about 5%. but that doesn't matter, what matter is what is the norm, which is much higher than 5%. that explains why rental yield must be at the 7 to 8% range to make sense.

to extrapolate that to Singapore, rental yield in the long run should be close to 7% as well to make condos good buys. but we are no where near that. so that is dangerous.

[devilplate]

the current rate for 30 years is about 5%. but that doesn't matter, what matter is what is the norm, which is much higher than 5%. that explains why rental yield must be at the 7 to 8% range to make sense.

to extrapolate that to Singapore, rental yield in the long run should be close to 7% as well to make condos good buys. but we are no where near that. so that is dangerous.
Sg mortgages rates 3.5%-4% is the norm

so SG healthy rental yield shd be 5%....not 7% la...hehe

[Eldenfirefly]

This type of proprty is in a different league. We don't belong to that kind of league, so hard for us to understand. :)

For people who are ultra rich segment, the difference between 10 million and 15 million maybe not a big deal to them lor. Maybe they are billionaire, so when they want a specific unit, then it doesn't matter about the price, they just want it.

Sometimes, such thigns need differentiation mah. Just like hand bag for cheap and good, got value for money, and got those Kate Spade, LV, etc which cost thousands of dollars. How to argue that a hand bag costing thousands of dollars is worth it? Is it so much more higher quality than one costing a few hundred?

But people still buy mah. So such thing sometimes cannot justify by mere logic one. Maybe the guy that buy the property is an ultra high net worth billionaire whale who only recently started to frequent Singapore because of the two casinos here. So to these people, 15 million is nothing? :)

[stalingrad]

Sg mortgages rates 3.5%-4% is the norm

so SG healthy rental yield shd be 5%....not 7% la...hehe

don't forget the depreciation and wear and tear, and property taxes, and the emotional investment (you get angry when your tenants mess up your place) and no to mention the period during which you cannot find tenants.

I would say the minimum rental yield is at least 7% as well. by that standard, you should not buy anything in the market now, as that would be suicidal.

[ysyap]

This type of proprty is in a different league. We don't belong to that kind of league, so hard for us to understand. :)

For people who are ultra rich segment, the difference between 10 million and 15 million maybe not a big deal to them lor. Maybe they are billionaire, so when they want a specific unit, then it doesn't matter about the price, they just want it.

Sometimes, such thigns need differentiation mah. Just like hand bag for cheap and good, got value for money, and got those Kate Spade, LV, etc which cost thousands of dollars. How to argue that a hand bag costing thousands of dollars is worth it? Is it so much more higher quality than one costing a few hundred?

But people still buy mah. So such thing sometimes cannot justify by mere logic one. Maybe the guy that buy the property is an ultra high net worth billionaire whale who only recently started to frequent Singapore because of the two casinos here. So to these people, 15 million is nothing? :)Those who can't afford will buy chiong wan...

[devilplate]

don't forget the depreciation and wear and tear, and property taxes, and the emotional investment (you get angry when your tenants mess up your place) and no to mention the period during which you cannot find tenants.

I would say the minimum rental yield is at least 7% as well. by that standard, you should not buy anything in the market now, as that would be suicidal.

ooo...too high standard...

like dat, forever no nid to invest in ppty liao.....seriously dun tink any ppty worth 7% even during the darkest period in 09

[ysyap]

don't forget the depreciation and wear and tear, and property taxes, and the emotional investment (you get angry when your tenants mess up your place) and no to mention the period during which you cannot find tenants.

I would say the minimum rental yield is at least 7% as well. by that standard, you should not buy anything in the market now, as that would be suicidal.At 7%, either we allow more more more FW and FT to enter our land to make demand >>>> supply or we bring the price of ppty down down down. Since the latter is unlikely, only solution is to bring in more foreigners... :D

[DaytonaSS]

This type of proprty is in a different league. We don't belong to that kind of league, so hard for us to understand. :)

For people who are ultra rich segment, the difference between 10 million and 15 million maybe not a big deal to them lor. Maybe they are billionaire, so when they want a specific unit, then it doesn't matter about the price, they just want it.

Sometimes, such thigns need differentiation mah. Just like hand bag for cheap and good, got value for money, and got those Kate Spade, LV, etc which cost thousands of dollars. How to argue that a hand bag costing thousands of dollars is worth it? Is it so much more higher quality than one costing a few hundred?

But people still buy mah. So such thing sometimes cannot justify by mere logic one. Maybe the guy that buy the property is an ultra high net worth billionaire whale who only recently started to frequent Singapore because of the two casinos here. So to these people, 15 million is nothing? :)

ard 3 hands in bacarrat lor. pple can lose 100m leh. buy whole row of landed wor, or 2 nassim GCB

[devilplate]

At 7%, either we allow more more more FW and FT to enter our land to make demand >>>> supply or we bring the price of ppty down down down. Since the latter is unlikely, only solution is to bring in more foreigners... :D

during the darkest period....i tink only 6% max max is achievable....bcoz rental aso drop alot during tat time....

[stalingrad]

ooo...too high standard...

like dat, forever no nid to invest in ppty liao.....seriously dun tink any ppty worth 7% even during the darkest period in 09

haha, you are wrong. we paid less than 600psf for our condo in early 2007. and the rental yield is about 6 to 7%.

what I trying to tell you is there are periods of time where real estate investments make sense. but not now.

[Eldenfirefly]

Unless our interest rates are a lot higher, otherwise, I don't think we will see 7% rental yield. If have, will immediate have buyer come in and push the price up, and the yield down. Because otherwise, the gap between interest rate and that rental yield will be so big as to create arbitrage effect! :)

[devilplate]

haha, you are wrong. we paid less than 600psf for our condo in early 2007. and the rental yield is about 6 to 7%.

what I trying to tell you is there are periods of time where real estate investments make sense. but not now.

u sure ur rental was so high when developer launch carabelle?

3bedder in tat area ard 2.5k per mth only in 2007

[devilplate]

if based on my orginal purchase px and current rental...i tink i got double digit rental yield:D

[stalingrad]

u sure ur rental was so high when developer launch carabelle?

3bedder in tat area ard 2.5k per mth only in 2007
true, but now it is more 4k per month. yes, I know what you are saying. what counts is the rental yield at the time of purchase. so, we took some gamble because in early 2007 rental yield was about 4%. but the gamble we took is nothing compared with the gambles people take today. They are accepting rental yield of 2 to 3%. that is just crazy.

[Eldenfirefly]

Like that, then for older generation that buy bungalow house for less than 100k, what is their rental yield now? lol

[stalingrad]

if based on my orginal purchase px and current rental...i tink i got double digit rental yield:D
that is because you bought at the market troughs. but this market is more likely a peak than a trough.

but you cannot time the market, right. So, the best way is to be cautious and conservative. when the rental yield is reasonable by historical standards, it is time to buy. when the rental yield is so low, like it is now, it is time to sell. I would not buy anything in this market.

[amk]

very funny

one silly transaction dun mean anything....

I was poking him for fun. his line of reasoning is really funny. "high benchmark prices in CCR" --> he then concluded " yea just as I said before, CCR big unit is dead". :cool: huh , is this logic even making any sense ? then I post him his favorite projects gaining psf within a month, he concludes " yea just as I said, CCR is dead" :D

u r not going to win over him abt this 7% rental yield argument ;)

[stalingrad]

Like that, then for older generation that buy bungalow house for less than 100k, what is their rental yield now? lol

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

[stalingrad]

I was poking him for fun. his line of reasoning is really funny. "high benchmark prices in CCR" --> he then concluded " yea just as I said before, CCR big unit is dead". :cool: huh , is this logic even making any sense ? then I post him his favorite projects gaining psf within a month, he concludes " yea just as I said, CCR is dead" :D

u r not going to win over him abt this 7% rental yield argument ;)

yes, whatever you said, CCR is dead and buried. don't just take my word for it. look around. the buzz is all about OCR properties. foresque is selling for 1200psf. Isn't what I predicted?

[Eldenfirefly]

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

Depends on what you define as "buying power". in 1960, one SGD is worth a lot less in terms of international currencies like USD as compared to what one SGD is today. So, in terms of international buying power, I think SGD has increased since 1960.

Just think in 1960, if you want to go for a one week holiday trip to US, how much will it cost you. Now if you go for the same trip, does it cost a lot more?

[stalingrad]

Depends on what you define as "buying power". in 1960, one SGD is worth a lot less in terms of international currencies like USD as compared to what one SGD is today. So, in terms of international buying power, I think SGD has increased since 1960.

Just think in 1960, if you want to go for a one week holiday trip to US, how much will it cost you. Now if you go for the same trip, does it cost a lot more?

it will cost you far more to go on a vacation in the US today than in the 1960s whether you pay for your trip with US or SG dollars. that is inflation.

in the 1960s, a bungalow cost 100k, but in the 1960s, a kg of pork cost only 5 cents vs. 10 dollars today.

[devilplate]

but you cannot say that. the money the old folks spent were 1960 SG dollars, which have much higher buying power than today's SG dollars.

Robert shiller shows that adjusting for inflation, real estate is just an average investment, producing returns that equal inflation rates.

wanted to noe is there any website tat tabulate SG ppty price vs inflation ??

[scsc]

wanted to noe is there any website tat tabulate SG ppty price vs inflation ??

Calling JLRX