New project info: Marina One Residences

Luxury condo Marina One Residences is set to launch in mid-September at an average asking price of $2,600psf - a level that market watchers deem challenging given current market conditions. 

 

It is part of the Marina South integrated project developed by M+S Pte Ltd, a joint venture between Temasek Holdings and Malaysian sovereign wealth fund Khazanah National following a historic land swop between the two countries involving KTM railway land. 

Only one out of the two 34-storey residential blocks in the 1,042-unit condo will be released for sale initially, said M+S. The launch date is yet to be fixed but the sales gallery will be open from Sep 13 to Oct 12.

According to M+S, the company does not come under qualifying certificate (QC) rules, which require a developer with foreign shareholders or directors to finish building a residential project within 5 years and sell the units within 2 years of completion. At another of its integrated projects - Duo in Bugis - 63 units of the 660-unit Duo Residences remain unsold.

But while market watchers have said that there is no hurry for the developer to sell all the units, some felt that the pricing strategy for Marina One Residences could be more aggressive given the substantial stock of unsold units in the prime districts of 9, 10 and 11.

An M+S spokesman expained, however, that the indicative pricing "takes into account Marina One's integrated offering of prime residential, office and retail space in the prime Marina Bay district and its connectivity to four MRT lines".

At another Marina Bay project, V on Shenton, units were sold this year at a median price of $2,118.5psf by United Industrial Corporation. V on Shenton still has 158 unsold units since its launch in August 2012.

Meanwhile, resale units at Marina Bay Suites were transacted at a higher median price of $2,753.5psf this year, according to caveats lodged. As at end-June, there are still some 19 unsold units though the project was launched in December 2009.

 

Century21 Singapore chief executive Ku Swee Yong noted that market conditions are more challenging now with a shrunken pool of potential buyers after borrowing limits were changed under the TDSR framework, and the larger number of unsold units in competing projects nearby.

In addition, the vacant plots of land between Marina One and the sea to its south could be released in future government land sales for office and residential developments, he said.

Given the TDSR borrowing limits, consultants are expecting more interest in smaller units than larger ones.

According to the condo plan, some 44% of the units at Marina One Residences will be one bedders sized 657 - 775sqft and 28% will be two-bedders measuring 969 - 1,130sqft.

 

 

Info source: BT