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Straits Times Sep 9, 2008
30 units sold at Martin
No. 38
SC Global sells
loft-style apartments at higher prices than expected
By Joyce Teo
DEVELOPERS will take heart from news that
all 30 private preview units at SC Global's New York-style
loft apartments in Martin Road have been sold at
better-than-expected prices in the past fortnight.
The company had
said it was expecting around $2,000 per square foot for the
project but sales came in at $1,881 psf to $2,494 psf, or an
average of $2,130 psf.
That would make the flats around $2 million to $3.8
million, depending on the size and location in the 15-storey
freehold development called Martin No. 38.
The firm announced yesterday that it defied expectations by
selling about a third of the 91 units, with about 60 per cent
of the buyers coming from overseas.
An investment bank had recently forecast a take-up rate of
slightly over half of the preview units.
SC Global chairman and chief executive Simon Cheong told
The Straits Times that the prices he achieved were clearly the
highest in the area on a psf basis at this time. The prices
also buck the trend, with sentiment in the property market
still weak, particularly in the high-end sector.
'These are 30
fellows buying in the midst of a storm. They must have seen a
lot of value,' said Mr Cheong. 'To sell 30 units without an
official launch, that has to do a lot with our branding.'
A market watcher who declined to be named said there has
been little change in prices of some other developments in the
area, with a few even falling.
Deals in the
Robertson Quay area have been done at $1,130 to $1,840 psf
this year although some Rivergate units sold for over $2,000
psf last year.
'It's like a salmon swimming against the tide,' said Knight
Frank director of research and consultancy Nicholas Mak, of
the rarity of projects selling at 30 to 40 per cent above
market like Martin No. 38, given today's gloomy sentiment.
A market watcher noted that high pricing works in a bullish
market but in the weak market prevailing now, sales are likely
to slow after the first 20 or 30 per cent is sold.
The developer says there is no need for an official launch
as it has sold out its preview units. It has yet to decide on
the launch of the second phase
'In good and bad
times, if your product is strong, you can still sell,' said Mr
Cheong. 'We could have launched next year but as far as a
public company is concerned, we try to phase our launches.
'In good times, a lot of people can claim a lot of
wonderful things... This is a time when you 'differentiate
yourself'.'
Martin No. 38 will
feature high ceilings and seamless interior spaces, like the
warehouse lofts in Lower Manhattan.
It has mostly small units of 969 sq ft to 1,130 sq ft with
a limited number of larger ones of 1,335 to 1,485 sq ft. There
will also be four penthouses with pools.
SC Global bought the site in 1999. It has said that it
deferred development partly to wait for the surrounding
environment to be ready.
'Although we are a developer, we don't rush,' said Mr
Cheong. 'The planning process took two to three years.'
It also has a site in the Ardmore Park area and another
leasehold site in Sentosa Cove. Both are in the design stage,
said Mr Cheong.
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