RECORDS could tumble once sales get under way today at Marina Bay Residences, the newest condominium in the newest part of town.
Prices at the 428-unit condominium could exceed $2,000 per sq ft (psf), which would be a new benchmark for 99-year leasehold properties.
Its mega three-storey, 11,012 sq ft penthouse has already garnered a handful of offers, with the highest almost hitting $22 million.
The public launch is on Friday, but a preview for staff and business associates is being held today, which will give the developer the first indication of pricing.
Demand is expected to be red-hot as sales agents CB Richard Ellis and DTZ Debenham Tie Leung have received close to a thousand enquiries, some from overseas.
The developer - a consortium of Cheung Kong (Holdings), Hongkong Land and Keppel Land - believes prices on the day could range from $1,550 psf to $2,150 psf.
The average could be just under $1,700 psf.
Most of the three- to four-bedroom units with views of Marina Bay are expected to command top prices, market watchers said.
Apart from the mega penthouse, which may be sold by auction or tender given the level of demand, the condominium also has nine other penthouses. There are 118 three- to four-bedroom units, 174 two-bedders and 126 one-bedroom flats.
The 55-storey condominium, which will be completed in 2010, is part of the Marina Bay Financial Centre (MBFC), which has two shorter office blocks.
MBFC's development head of residential marketing, Mr Kan Kum Wah, said the prices achieved recently at nearby The Sail @ Marina Bay will be a guide.
Last month, The Sail's sales were completed at an average of $1,411 psf, with the highest at $1,750 psf.
The Marina Bay Residences launch comes at a time of market exuberance, with high-end homes leading the property recovery.
Mr Willy Shee, chairman of CB Richard Ellis, Asia, expects foreigners to comprise more than 30 per cent of the condominium's buyers. 'Considering today's prices, quite a number of potential buyers would be banking on future capital gains,' said Knight Frank director of research and consultancy Nicholas Mak. 'This is because rental growth may not escalate as fast as capital gains in the next 12 months.'
A market watcher noted: 'When you pay $2,000 psf, you are pricing yourself forward, expecting rents of $7 psf in 2010.'
CB Richard Ellis said buyers can expect a rental yield of about 5 per cent to 6 per cent, compared with the usual 3 per cent to 4 per cent.
The market watcher said that when Marina Bay Residences is completed in about three years, the Marina Bay Sands integrated resort will be open. Thus, The Sail seemed the better choice as it will be completed earlier.
'Buyers think that this is The Sail part two,' he said.
But they are buying at the top of the market for that location, which means it could take longer for prices there to rise further, he said.
Prices of The Sail units have risen significantly in the sub-sale market.
Nevertheless, for buyers of Marina Bay Residences, price may no longer be an issue, said Colliers International's associate director of residential, Mr Vincent Chong. The more important factor is whether they can get a unit, he said.
Experts said prices achieved at Marina Bay Residences could affect prices of the next high-profile 99-year leasehold residential development - Orchard Turn.
joyceteo@sph.com.sg
