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1 April 2010 - In Hong Kong, London, New York, Tokyo etc, all these major cities have a similar "phenomenon", that condos/properties "in the city" are at much higher prices than those in the suburbs, there exists a "2-tier market".
Why? Becos all Major Cities attract the very, very Rich and Wealthy. For them, they go for "prestige" and "in", they would gladly pay high prices for properties in the city.....actually, Singapore is starting to have this trend.
In the past, only District 9 (Orchard area) would command prices of S$3,000 psf, now it include District 1 and 2, (Marina, CBD), District 4 (Sentosa, Harbourfront)......I heard that Marina Bay Residences are going to be relaunched at S$2,500 to S$3,500 psf....
All 202 units of 76 Shenton sold out within 1 day at prices ranging from S$1,600 to S$2,600 psf on 25 March 2010 (Thursday). (I know and I saw with my own eyes, as I was there at the launch of 76 Shenton).
Altez, the latest Far East project is selling its "Loft" units on 30th floor for S$2,350 psf....please note that Loft has 35% extra space compared to Studio units, which means the price is closer to S$3,000 psf instead.....Altez has 62 floors, I really can't imagine at what prices they would sell those above 50th floor....
Far East has 2 remaining 2-bed room units on 45th Floor, and selling at S$2,500 psf....(I saw the units myself).
The suburbs mass market condos are mostly owned by Singaporeans for Home Purchase, and the "peak" prices is very near, as the "celing" will be determined by the income of Singaporeans......but for condos in District 1, 2, 9 and 10......they are mainly owned by foreigners...who might be very, very rich, eg. The Owner of India's Spice Group who bought the Penthouse unit at The Sail for S$15.5 million, or S$2,650 psf during the Global Financial Crisis in Sep 2008....
For such properties, in Hong Kong, price ranges from S$5,000 to S$10,000 psf.....so S$3,000 psf in Singapore is considered "cheap" (Value for Money)....
Singapore has not even seen the "arrival" of Big Spenders of China that have pushed Hong Kong's property prices to record high...
I'm not sure so far any Property Experts have really put forth what I'm sharing here....this is not research done by professors, but I would term it "Streetsmart Analysis". Truly, for such condos in eg. Orchard, I don't think the Singapore government really want to control or put a "Cap" on the price....since the "Target Market" is not the typical Singaporean, but the Rich and Wealthy from all over the world.
Dennis Ng, http://www.MasterYourFinance.com - When You Master Your Finances, You Master Your Destiny!
Below is extract of news of Purchase of condo by Spice Group Founder.
Dr Bhupendra Kumar Modi, global chairman and founder of Indian conglomerate Spice Corp, bought a whole-floor penthouse unit at The Sail @ Marina Bay for a cool $15.463 million last month.
The US$1.5 billion (S$2.2 billion) Spice Corp group makes cellphones and operates a chain of cellphone retail outlets and entertainment plazas in India.
Last month’s deal makes the 5,834 sq ft penthouse – atop the 63-storey second tower of The Sail – the most expensive in the 1,111-unit condo, though not in Singapore.
The price for the 99-year leasehold apartment works out to $2,650 per sq ft (psf). Next door, a bigger penthouse in the 99-year leasehold Marina Bay Residences was sold for $26.9 million, or $2,446 psf in late 2006.
In Singapore, the record price is $5,600 psf for a 53rd-storey private apartment in The Orchard Residences. This works out to $28.27 million for the 5,048 sq ft, 99-year leasehold unit.
On an absolute basis, a freehold apartment on the 19th storey of The Marq on Paterson Hill was sold for a whopping $31 million, but at a lower psf price of $5,100. Both deals were done during last year’s boom.