SC Global sells Singapore luxury homes
SC Global Development Ltd, Singapore's best-performing property stock, sold out the first phase of a luxury downtown project at record prices even before marketing it to the public. Shares surged.
By Agencies |
SINGAPORE: SC Global Development Ltd, Singapore's best-performing property stock, sold out the first phase of a luxury downtown project at record prices even before marketing it to the public. Shares surged.
The 21 apartments at the ``The Marq'' were sold for as much as S$5,100 ($3,327) a square foot, the highest price ever recorded in the city-state. The units, including eight with private lap pools, fetched an average price of S$4,137 a square foot, the company said in an e-mailed statement yesterday.
Singapore home prices are surging, driven by the longest economic expansion in a decade and the world's fastest-growing population of millionaires. Investors paid between S$11 million and S$31 million for homes at The Marq, five minutes walk form the main shopping district of Orchard Road.
``The price increase has been rather short and swift, and if you're looking at S$5,100, there's an element of snob appeal there,'' said Donald Han, Singapore-based managing director of Cushman & Wakefield, a real estate consulting company.
Singapore's private home prices rose 4.8 per cent in the first quarter, the most in seven years, as the economy enjoyed its longest expansion since 1994, government data showed. Home prices are expected to increase as much as 25 per cent this year, Citigroup Global Markets said this month.
Surge in Millionaires
Singapore had the largest growth in the number of millionaires, or individuals with net assets of at least $1 million excluding their main residence and consumer goods, according to an annual survey by Capgemini SA and Merrill Lynch & Co this week. The number of millionaires in the city-state rose 21.2 per cent to 66,660, the survey said.
SC Global shares rose as much as 50 cents, or 7.8 per cent, to S$6.90, trading at S$6.70 at 10:27 a.m. Singapore time. SC Global's stock almost tripled this year, making it the best performer on the Singapore property index.
The Marq will have a total of 66 homes when it's completed, including 21 five-bedroom units that will each have a 15-meter (49-foot) lap pool.
Rising home prices in Singapore have also led to a surge in demand for land. SC Global said June 18 it will pay S$262 million for an existing apartment complex close to the city's main shopping belt, which will be redeveloped into a new luxury residential project. The price of The Ardmore works out to S$2,338 a square foot, a record for an existing development.
`Project-Specific'
CapitaLand Ltd, Singapore's largest developer by assets, said yesterday it will pay S$1.3 billion for another apartment complex near the city-state's downtown, the highest price for an existing development. CapitaLand shares rose as much as 2.6 per cent.
The purchase of Farrer Court will boost its land holdings for residential projects in Singapore, where it will build as much as 5.5 million square feet of space, CapitaLand said yesterday.
Developers are also tearing down older apartments at a record pace to rebuild newer projects that are expected to fetch higher prices. Not all new apartments will be able to repeat the performance of The Marq and other downtown developments.
``It will be project-specific,'' Cushman & Wakefield's Han said. ``To achieve that kind of price level, you must have the branding and only a few developers have that.''
Home prices are expected to pick up for the overall market and could rise 20 percent a year in 2007 and 2008, with so- called mass market properties posting the biggest gains, UBS AG said in a June 28 report.
``We still expect residential prices to catch up with economic growth,'' UBS analysts, including Regina Lim, said in the report. ``Overall residential prices are lagging behind income levels by around 15 per cent to 17 per cent.''
CapitaLand's The Orchard Residences, located on the shopping belt, held the previous record for new homes when it sold apartments at more than S$4,000 a square foot.
The 21 apartments at the ``The Marq'' were sold for as much as S$5,100 ($3,327) a square foot, the highest price ever recorded in the city-state. The units, including eight with private lap pools, fetched an average price of S$4,137 a square foot, the company said in an e-mailed statement yesterday.
Singapore home prices are surging, driven by the longest economic expansion in a decade and the world's fastest-growing population of millionaires. Investors paid between S$11 million and S$31 million for homes at The Marq, five minutes walk form the main shopping district of Orchard Road.
``The price increase has been rather short and swift, and if you're looking at S$5,100, there's an element of snob appeal there,'' said Donald Han, Singapore-based managing director of Cushman & Wakefield, a real estate consulting company.
Singapore's private home prices rose 4.8 per cent in the first quarter, the most in seven years, as the economy enjoyed its longest expansion since 1994, government data showed. Home prices are expected to increase as much as 25 per cent this year, Citigroup Global Markets said this month.
Surge in Millionaires
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Singapore had the largest growth in the number of millionaires, or individuals with net assets of at least $1 million excluding their main residence and consumer goods, according to an annual survey by Capgemini SA and Merrill Lynch & Co this week. The number of millionaires in the city-state rose 21.2 per cent to 66,660, the survey said.
SC Global shares rose as much as 50 cents, or 7.8 per cent, to S$6.90, trading at S$6.70 at 10:27 a.m. Singapore time. SC Global's stock almost tripled this year, making it the best performer on the Singapore property index.
The Marq will have a total of 66 homes when it's completed, including 21 five-bedroom units that will each have a 15-meter (49-foot) lap pool.
Rising home prices in Singapore have also led to a surge in demand for land. SC Global said June 18 it will pay S$262 million for an existing apartment complex close to the city's main shopping belt, which will be redeveloped into a new luxury residential project. The price of The Ardmore works out to S$2,338 a square foot, a record for an existing development.
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`Project-Specific'
CapitaLand Ltd, Singapore's largest developer by assets, said yesterday it will pay S$1.3 billion for another apartment complex near the city-state's downtown, the highest price for an existing development. CapitaLand shares rose as much as 2.6 per cent.
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The purchase of Farrer Court will boost its land holdings for residential projects in Singapore, where it will build as much as 5.5 million square feet of space, CapitaLand said yesterday.
Developers are also tearing down older apartments at a record pace to rebuild newer projects that are expected to fetch higher prices. Not all new apartments will be able to repeat the performance of The Marq and other downtown developments.
``It will be project-specific,'' Cushman & Wakefield's Han said. ``To achieve that kind of price level, you must have the branding and only a few developers have that.''
Home prices are expected to pick up for the overall market and could rise 20 percent a year in 2007 and 2008, with so- called mass market properties posting the biggest gains, UBS AG said in a June 28 report.
``We still expect residential prices to catch up with economic growth,'' UBS analysts, including Regina Lim, said in the report. ``Overall residential prices are lagging behind income levels by around 15 per cent to 17 per cent.''
CapitaLand's The Orchard Residences, located on the shopping belt, held the previous record for new homes when it sold apartments at more than S$4,000 a square foot.
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