Would you pay $17 million for this 3,000 sq ft condo ?
News today, reported by the Business Times, that SC Global Developments’ “The Marq” on Paterson Hill might have set a new record price for non-landed homes at $5,842 psf from the previous $5,600 psf four years ago has the market talking.
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But this does not mean that other luxury homes would also be lucky to hit the same level, according to experts.
“I think [the new record price] probably signals the return of the interest to luxury segment of the property sector which actually showed lacklustre performance in the last few quarters. But I think I just need to caution that this case is just an outlier transaction that actually pick up,” Chia Siew Chuin, Director of Research & Advisory at Colliers International said.
The property analyst noted that although increased sales in the core central region of Singapore was observed in the recent months, a more vibrant transaction in the luxury segment as what the “The Marq” exemplified was not seen. Thus, concluding that the case of this property may go forward to other transactions in the luxury segment might be too early to do, she said.
According to Colliers International’s estimates, capital values for the luxury properties averaged $3,012 in the first quarter. By the end of 2011, Ms. Chuin said that they expect it to peg up to 5% higher than last year’s average of $3,001.
Oii Yu Tung, another property analyst from the Kim Eng Securities concurred noting that unless he sees more property launches at the upper end segment , the trend of more than $5,800 psf set by the “The Marq” would not be possible. He noted though that this price achievement “might spur developers to launch remaining luxury units in their land bank, at least partially.”
For the “The Marq,” however Mr. Tung said that a $6,000psf price for its remaining units is possible.
“I won't rule the $6,000 psf price out. If SC Global releases its remaining units for sale, I am sure there are choice units that could command such prices. The latest transaction is the first to cross $5k mark this year,” he said.
The “The Marq”, which snatched the title “the priciest apartment” from Orchard Turn Developments’ Orchard Residences, as the Business Times reported, was first launched in 2007.
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