There has been a significant upswing in real estate demand this year as Singapore boosts efforts to reopen its borders.
In fact, in the luxury segment, home sales rose to a new high in more than 10 years in Q2 2021.
Christine Sun, Senior Vice President of Research & Analytics at Orange Tee &Tie noted that based on Urban Redevelopment Authority (URA) data, prices for condominiums in the Core Central Region (CCR) grew 4.9 per cent over the past five years.
“For those buying for rental income, the returns have been favourable since landlords face little difficulty finding tenants in general”, she said
Echoing the positive sentiment, Mark Yip, CEO, Huttons Asia, added that he is positive on the overall property market and CCR in 2021 and 2022.
“Investors are finding value in the CCR. Once the border measures are gradually eased with more Vaccinated Travel Lanes (VTLs), we may see more inflow of foreigners and that will spur growth in the rental market,” he added.
Within the CCR, a much sought-after location remains Marina Bay. The area has been extensively developed over the last two decades and is now flanked by gleaming skyscrapers and world class attractions.
One of the latest additions to the area is Marina One, a 3.67 million square feet integrated development comprising luxury residences and over 140,000 sq ft of retail, lifestyle and F&B spaces and Grade A offices.
The Luxury Of Space
Unit sizes in this 99-year development are spacious and hard to come by.
Take for example the one-bedders which range between 657 sq ft and 775 sq ft.According to PropNex Chief Executive Officer Ismail Gafoor, the one-bedders at Marina One Residences are slightly bigger than the recent one-bedroom units launched in the CCR which are on average sized around 500 square feet.
“In today’s norm, the one-bedroom units at Marina One Residences are on par with some 2-bedroom units in new developments in the central region. The generous floor space is increasingly less common amongst new homes and is something homebuyers will continue to value,’’ he added.
The development also has 2-, 3- and 4-bedroom layouts as well as penthouse units. Many of the 2- and 3- bedders come with a study and is perfect for WFH arrangements.
Marina One Residences offer 2-, 3-, 4- bedroom and penthouse units with spacious layouts. Photo: M+S
Buyers will also be glad to know that units in the development are competitively price and start from 2,200 psf.
Almost Immediate Rental Returns
Another pull factor that Marina One Residences offer is that units are ready for immediate occupation. This means that investors can look forward to almost instant rental returns.
In addition, Marina One Residences will have a ready pool of potential tenants from the Marina One Office towers while also being situated in the heart of the financial and business district. This provides a robust leasing base for investors to tap on.
Marina One’s twin 30-storey office towers are occupied by some of the biggest multinationals and Fortune 500 companies including professional services network PwC, Swiss private bank Julius Baer, and oil giant BP.
Marina One Residences, developed by M+S, was completed in 2018, offering buyers immediate occupancy or the option to immediately rent out the units. Photo: M+S
Yip opines that Marina One Residences’ integrated concept and rare unit sizes makes the project stand out, offering a different value proposition in District 1.
“Marina One Residences is a reputable integrated development developed by two sovereign wealth funds. It has residential, retail and office components and is linked to 3 MRT stations connecting to 4 lines. Furthermore, the presence of an immediate tenant pool from the office tower makes it easier to rent out the units,” Yip shared.
“Investors who value this will find Marina One Residences compelling and not to be missed,” he added.
PropertyGuru data shows that rental prices for 1 bedrooms in the development is between S$4.68 sq/ft – S$6.04 sq/ft and has held steady despite the pandemic.
Gearing Up For Transformation
According to the Urban Redevelopment Authority’s (URA) 2019 Draft Master Plan, the Central Business District (CBD) is set to be transformed into a more liveable and vibrant place with more homes and mixed-use developments over the next 10 to 20 years to attract a larger pool of residents.
The government is also committed to improving mobility in the CBD.
Another transformation underway is the development of the Greater Southern Waterfront which stretches from Gardens by the Bay East all the way to Pasir Panjang. That’s six times the current size of Marina Bay and will be integrated with the CBD and Downtown Core.
The 30 kilometers waterfront will also provide people with a cycling and pedestrian walkway connecting to The Southern Ridges and Gardens by the Bay.
Both initiatives are set to benefit property owners in the area.
Buyers of Marina One Residences can look forward to the transformation of the CBD and future developments in the area. Photo: M+S
Securing Future Gains
That’s not all, owners can also look forward to future growth as white sites – earmarked for residential, commercial and hotel projects as well as sports & recreational use – around Marina One Residences come into development.
This could set the scene for higher priced launches in the future.
Take for example the recent sale of the Marina View white site to a wholly-owned subsidiary of Malaysian property developer IOI Properties Group at S$1,379 per square foot per plot ratio (psf ppr).
According to Huttons Asia, rising costs in labour and materials could see launch prices at Marina View easily hit $2800 psf and upwards.
Meanwhile, PropNex Realty estimated the breakeven price for the Marina View site to be around $2,300 psf with future launch prices to range between $2,700 psf to $2,800 psf.
“Comparing this with Marina One Residences average resale price of $2,500 psf, it is about 8% to 10% cheaper than the expected launch prices of the future Marina View site,” concluded Gafoor
Check out listings for Marina One Residences, here.
