PROPERTY investors are making a killing on apartments at The Sail @ Marina Bay as interest in waterfront living continues to build in Singapore.
In all, 52 units of the 99-year leasehold development were sold in the sub-sale market in the third quarter, property consultancy Savills Singapore found in a check of caveats lodged.
The lucky sellers who had picked up their units just one or two years ago netted an average of $300,000 in profit.
The number of sub-sales for The Sail in the third quarter is a significant rise from the seven deals in each of the first and second quarters.
Sub-sales are transactions in which homes bought directly from the developers are resold before the development has been completed.
They are seen as a proxy for property speculation as the units are 'flipped' for a quick profit without the original buyers ever occupying the homes. So far this year, about 490 sub-sales have been transacted islandwide, Savills found.
At The Sail, the highest price for a sub-sale unit this year was $1,640 per sq ft (psf) for a 2,185 sq ft unit sold in August. This was on a high floor in the 70-storey first tower that was launched in November 2004 at around $900 psf to $950 psf.
Earlier this month, a 936 sq ft unit in the first tower was flipped for $1,548 psf.
The Sail is a joint venture development by City Developments (CDL) and AIG Global Real Estate Investment.
Its second tower was launched just last October at $1,080 psf and units have also been flipped for quick profits.
Larger units at The Sail were sold at an average of $1,285 psf in sub-sales this year, Savills found.
Market watchers said the interest in The Sail is due to a limited supply of inner-city waterfront living and its proximity to the upcoming integrated resort (IR) and Marina Bay Financial Centre.
Besides the Marina Bay homes, investors are springing for other waterfront properties such as those on Sentosa Cove.
At the 264-unit, 99-year leasehold The Oceanfront @ Sentosa Cove, 15 units have already changed hands since the development was launched in early July.
A 3,025 sq ft seafront unit was sold in the sub-sale market last month at $1,750 psf, much higher than the average of $1,300 psf to $1,350 psf CDL launched the condo at.
Two other Sentosa Cove condos launched earlier - The Berth by The Cove and The Azure - saw less sub-sale activity.
But many owners have advertised to sell, with one asking for $1,250 psf for a 3,100 sq ft penthouse in The Berth, compared with the condo's launch price of less than $800 psf.
The Berth obtained its temporary occupation permit last week, which means owners have to start paying for their apartments. The speculators are cashing out, a market watcher said.
At another Sentosa Cove development, The Coast, a buyer has put his 2,024 sq ft unit up for sale for $3.85 million, or $1,902 psf. This is even as developer Ho Bee is still marketing the development. It has already sold around 190 of the 249 units at between $1,300 psf and over $1,800 psf.
While stories of quick profits may reek of the bad old property speculation of the past, market watchers are not yet worried about the increase in sub-sales.
Sub-sales today are not rampant and far from alarming, said Savills Singapore director of marketing and business development Ku Swee Yong.
'It's all a matter of timing,' said a market watcher. 'When The Sail was first launched, prices were lower because we didn't know that the IRs were coming.'
Indeed, Mr Ku said: 'The higher prices achieved in the market today is just a reflection of the reduction of risks, an improving economy and the growth of the financial industry here.'
joyceteo@sph.com.sg
