Marina One Residences is expected to launch in the middle of September at price level considered by market watchers to be very challenging due to the current market conditions. This project is one of the Marina South integrated projects under the development of the venture between Temasek Holdings and Malaysia’s Khazana Nasional- M+S Pte Ltd. The project would be offered at S$2,600 psf.
Firms including CBRE, DTZ, ERA and Knight and Frank are tasked to market the residential flats of the project while CBRE and Cushman & Wakefield will look over the marketing of the commercial units.
According to the developer, only one of the 34-storey residential blocks will be launched in mid-September. While the exact launch date is not yet determined the sales gallery opens in September 13 to October 12.
Due to the missing qualifying certificate of the developer, the project would not be finished in the coming 5 years. Although market watchers look beyond the timeline of the project, they commented that the developer should offer better pricing strategy most especially since they still have unsold units in Districts 9-11.
In an explanation provided by the company’s spokesman stated that pricing “takes into account Marina One’s integrated offering of prime residential, office and retail space in the prime Marina Bay district and its connectivity to four MRT lines”.
Units of another Marina Bay Project – Shenton V- have been sold during the year with an average price of S$2,118.5 psf. Currently, this project by United Industrial Corporation still has 158 units to be sold since its launching date in August 2012.
On the other hand, the resale units of Marina Bay Suites gained some margin at the median price of S$ S$2,753.5 at the current year. Based on the figure at the end of June, 19 units remain unsold since the launching of the project in 2009.
The decrease in the number of prospective buyers makes the market condition tougher. This is a result of the new TDSR or Total Debt Servicing Ration framework as well as the numbers of the unsold units of different projects in the area. This is even made more challenging by the vacant land plots between the sea and Marina One which, according to some buzz, would be offered under GLS or government land sales as residential and office developments. Consultants no expect higher interest for smaller units due to the borrowing limit in TDSR.
Based on the porject’s plan, 44% of Marina One units will be between 657 -775 sqf in size while 28% will be at the range of 969- 1,130 sqf.
One of the price justifications of the project is its prestigious location at the upper area of CBD which could target expats. However, investors are quite hesitant due to the reduced allowances of expats for their housing as well as the number of senior expats. In 2017, the first class offices from Marina One and Du are expected to be launched.
UEM Sunrise partners with Mapletree Investments to look over Marina One and its 140,000 sq ft net lettable area (NLA) allotted for its retail space and 1.88 million sqf in NLA for office units.