www.shaproperty.com

WATERFRONT homes appear to be a hit with property speculators hoping to flip the apartments they bought for a quick gain, going by recent caveats lodged as well as advertisements in the newspapers.

In the latest sign of speculative activity in the luxury residential market, investors who snapped up units in the latest hot launch in town, The Oceanfront @ Sentosa Cove, are already advertising them for sale.

One advertiser in The Straits Times Classified section even offered seven units, all on one floor, to potential buyers within two days of picking up the apartments late last week.

Offered at a price of around $100 per sq ft (psf) above what he is likely to have paid, the owner is hoping to make gains of more than $100,000 per unit.

Data from property consultancy Knight Frank showed that Oceanfront is just the latest in a handful of high-end waterfront properties which have attracted speculators' interest.

Apartments in two other luxury developments - The Sail @ Marina Bay and The Azure at Sentosa Cove - have changed hands recently, even though both condominiums have yet to be completed, Knight Frank found in a check of sub-sale caveats.

Sub-sales, or deals in which a property changes hands even before it is ready for occupation, are seen as a measure of speculative activity in the market.

Market players said speculators could be banking on waterfront properties because of their limited supply in Singapore. Such homes are also more marketable because of the sea views and lifestyles they offer, said Knight Frank director Nicholas Mak.

The buzz surrounding the upcoming integrated resorts at Marina Bay and Sentosa could also be a factor, market players said.

At Oceanfront, more than 85 per cent of the 264-unit project has been snapped up since the developers, City Developments (CDL) and TID, started selling the apartments last Thursday.

Buyers were most interested in the sea-facing units and some even snapped up entire floors, each consisting of as many as seven units.

An industry source said: 'When a project moves so fast, there will be a certain amount of speculation.'

The red-hot demand led the developers to raise prices by 2 to 3 per cent on Friday. Average prices were around $1,300 psf but sea-facing units fetched a higher $1,450 psf and beyond. Some of these buyers are now offering to sell the units at between $1,400 psf and $1,700 psf.

When contacted, a property agent said more owners can be expected to sell their units at higher prices in the near future. A sea-facing unit on a high floor, bought at $1,509 psf, is available for sale at $1,700 psf, he added.

Market sources said the speculators are 'specu-vestors', or well-heeled investors who can afford to hold on to their units if they wish to.

Compared to the speculators who were active in the run-up to the 1996 property market peak, the new group of speculators have more financial muscle.

'They don't gear up as much,'' said a source. 'And if they can't sell, they will rent it out.''

But despite signs that property speculators are back in the high-end residential market, property players said there is no fear yet of a revival of the rampant speculation of the 1990s.

Knight Frank's data showed that sub-sales as a proportion of total sales in the high-end segment have risen from 4.1 per cent in 2003 to just 6.8 per cent last year.

In the first half of this year, this figure slid to 5.3 per cent.

High levels of sub-sales are also limited to just a few selected projects, Mr Mak said.

There are few signs of speculation in the mass market and mid-tier segments, he added.

When contacted by The Straits Times yesterday, the Urban Redevelopment Authority also said the current level of sub-sales is not high.

joyceteo@sph.com.sg

Hot demand

IN WHAT is probably the starkest sign yet of how popular waterfront homes are becoming, property speculators that bought units of The Oceanfront @ Sentosa Cove, which was launched last week, are already advertising them for sale in the hope of flipping them for a quick gain.

Such advertisements were spotted in The Straits Times Classified section since Saturday, with one advertiser offering seven units, all on one floor, to potential buyers. Over 85 per cent of the 264-unit project by CDL and TID has been sold.