Marina Bay Residences subsales hit 16

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Published January 26, 2007

Marina Bay Residences subsales hit 16

Gains said to range from $500,000 to more than $1m

By KALPANA RASHIWALA

(SINGAPORE) There have been at least 16 subsales already concluded at Marina Bay Residences so far, with more pending, sources have told BT.

None of the penthouse buyers have made subsales so far, but the buyers of one, two, three and four-bedroom units have. More deals could be in the works.

The full set of subsale deals in the development has yet to be captured through data on caveats, but according to industry sources, gross profits (the difference between subsale prices and original prices at which units were purchased from developers) seem to range from about $500,000 to more than $1 million - with holding periods generally of a few weeks.

In one instance, the buyer of a four-bedroom apartment above the 30th floor bought his unit for about $4.7 million and resold it for about $5.3 million in the subsale market.

The owner of a three-bedder unit on the 15th level made an even bigger profit of around $1.1 million from selling his apartment for $3.7 million, against a $2.6 million initial price paid to the developer.

All 418 apartments in the development were sold out within two days when previews started in December. The project's 10 penthouses were also snapped up at tenders during the evenings.

In all, the project achieved an average price of $1,950 per square foot.

The 11,012 sq ft 'uber' penthouse spread over the top three levels of the 55-storey, 99-year leasehold project was sold by the project's developer for nearly $26.94 million, or $2,446 psf, according to caveat information captured by the URA Realis system.

A duplex penthouse on the 52nd level was sold by the developer for $9.3 million, or $2,580 psf.

Caveats for three single-level penthouses have been lodged. A 4,478 sq ft unit on the 49th floor was sold for $14.83 million or $3,312 psf.

Another on the 50th level went for $14.6 million or $3,252 psf, while the third, a 4,672 sq ft unit on the 52nd floor, cost $14.95 million or $3,199 psf.

A seasoned property agent estimates that around 120 units in the development are currently looking for buyers in the subsale market. These include two duplex penthouses.

'The percentage of owners looking to subsell is high, but the success rate is not that high yet,' says ERA Realty Network divisional director Andrew Soh.

'The owners have high asking prices and if they do not get them, they will not sell. They're not in a hurry to sell; they have holding power.'