Marina One Residences has saved the sales of its developers

Developers may have sold more units in October than in September last 2014, but Marina One did differently

According to data released by Urban Redevelopment Authority, they sold 7605 private residences last October 2014, 18% higher than the units sold in September. But Marina One Residences alone sold 334 of its total 400 launched units.

A SLP International executive director, Nicholas Mak, stated: “If Marina One Residences was taken out of the equation, the sales volume in October would be the lowest for the whole of 2014… Other than Marina

One Residences, the sales in the other top sellers were all less than 50 units each in October. Therefore, there is still a long way to go for the local real estate market before a firm and steady recovery is in sight.”

Year-over-year, sales have fallen 31% from 1,104 units sold in October last year. These exclude executive condos (ECs), but if these are included, developers will sold 855 units in October, above 707 units in September.

Marina One Residences is a mixed-use project by Temasek Holdings and Khazanah Nasional. Its units were sold at a price of S$2,228 psf in October. The consultants credited its appeal to its attractive pricing, proximity to MRT stations, and prime inner city location. It was also the only new residential project launch in October.

Out of the 334 units were sold, more than 300 units were bought through private sales, rather than a public launch.

A chief executive of PropNex, Mohamed Ismail, said: “Buying demand was not totally absent in the market, but it had to be drawn out by attractive pricing,”

Ong Teck Hui, anational research director at JLL, said: “The lack of new launches in October, despite this period being considered a window of opportunity to secure some sales (before the year-end festivities begin), shows that developers are not confident that there is sufficient demand to achieve a decent take-up… Due to the challenging market conditions, developers seem to prefer to let the year slip by and tackle the challenges afresh in 2015. It is unlikely that the market will see any significant resurgence in launches and sales for the rest of 2014, and it looks set to close as the most dismal year since 2008 when the market was hit by the global financial crisis.”

GuocoLand overpaid a Martin Place site?

The residential site that GuocoLand secured at a state tender along Martin Place has key attributes that are a strong factor for any developer who’s planning a condo project.

But the winning bid of 595.1 million Singaporean dollars for a 1.6-hectare site was said to be overpaid. It translates to 1,239 Singaporean dollars psf ppr (per square foot per plot ratio); the highest unit land price for a residential site sold at a public tender since 2009.

The site can hold up to 450 residential units. It is situated at the corner of Martin Place and River Valley Close in District 9.

The site has a strategic location as it will only be a short walk to the future Great World MRT Station at the Thomson East Coast Line; one stop from the Orchard Station and five stops from Marina Bay Station.

However, this site will appeal to families that are seeking for schools for their children as it isn’t far from the popular River Valley Primary School. A part of this site has a 20-storey height restriction, while the rest of it can build up to 30-storey high.

They based those estimates from the sale evidence this year at Martin Place Residences and the Rivergate; the two freehold developments nearby, and also from the 99-year leasehold project at the Orchard Road shopping belt, Cairnhill Nine, that was sold last March faster than they expected.

URA (Urban Redevelopment Authority) specified a maximum 450 units for this site which will make the average unit size in GuocoLand’s project will be 1,067 square feet. This is smaller than the average unit sizes that have changed hands from both Martin Place Residences and Rivergate this year.