Saturday, December 16, 2006
[RealEdge] TodayOnline : Marina Bay Residences being resold even before buyers sign on dotted line
 This story was printed from TODAYonline | |
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| Marina Bay Residences being resold even before buyers sign on dotted line Weekend ?December 16, 2006 BARELY days after being sold out, Marina Bay Residences is making an appearance on the secondary market, with some buyers looking at cashing in their profits without even having signed on Sale and Purchase agreements. A check of the classified advertisements show that at least 30 units of the condo ?which had set record prices for 99-year leasehold homes ?are already up on the resale market, with prices raised up to 30 per cent. A 1,055 sqft two-bedroom apartment has an asking price of $2.11 million, potentially netting its owner a handsome sum of at least $150,000, if bought at the average price of $1,850psf. Already, some units have been flipped over the past two days ?with one Singaporean buyer said to have netted a profit of about $950,000. "We are now in uncharted territory. It is unprecedented for a 99-year lease property to reach these kinds of prices," said Mr Nicholas Mak, Knight Frank's director for research and consultancy, who was surprised at the $1,850 psf average price the 428 units at the development fetched. Some 60 per cent of the buyers are Singaporeans, said developer BFC Development earlier, which cancelled the project's public launch on Friday due to the overwhelming response. Though actual prices for the penthouses sold via tender were not revealed, reports say the biggest unit was sold at $28 million. Sudhir Gupta, chairman of Russian tyre-maker Amtel, reportedly bought a duplex penthouse at Wednesday night's tender for $2,450 psf, or nearly $10 million. Hoping to cash in on the euphoria, ERA agents are already taking up ads to look for prospective buyers of the nearby One Shenton, an upcoming project by City Developments Limited. But analysts caution against jumping indiscriminately into the red-hot luxury home market. "Those looking at this as an investment will have to hope that the feel-good sentiment and property fever in the secondary market will be sustained in years to come," said Mr Song Seng Wun, a regional economist for CIMB GK Research. "Sooner or later, someone is going to draw the line and say I will only pay this much," said Mr Song. Any economic slowdown, acts of terrorism and natural catastrophe could result in potential pullbacks in the property market, bringing prices back down to earth, said experts. Potential buyers on the resale market must also bear in mind that the developers for Marina Bay Residences have yet to issue the Sale & Purchase agreements to the new owners. This means that the paperwork and technicalities of the transaction have yet to be finalised between the developers and the original buyers. "Without the S&P agreement, the sellers technically have nothing to sell. It is up to the secondary market buyers to engage lawyers to conduct the required checks and paperwork to ensure that the seller is really genuine," said Mr Mak. More anti-speculative measures could also be introduced, say experts, citing the recent withdrawal of the deferment of stamp duty payments. In a research note, OCBC Research said Government intervention is "not inconceivable" Said analyst Winston Liew: "Risks are apparent, as speculative frenzy at show-flats could signal a replay of the bubble years of 1996 and 1999. Moreover, with the strong price inflation at prime properties, en-bloc sales are at record high numbers." He added: "This is a classic case of history repeating itself, and the risk of government intervention to pre-empt problems cannot be ruled out." ?Joseph Yadao | |
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// posted by Shajahan @ 2:09 PM 