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Posts Tagged ‘The Marq on Paterson Hill’

Apartment at The Marq fetches $5,842 psf, sets a new price record

A new record has been set for the price of a private residential property in Singapore. Sources say that a four-bedroom apartment at SC Global Developments’ The Marq on Paterson Hill recently fetched $5,842 per square foot, surpassing the previous high of $5,600 psf set in October 2007 at The Orchard Residences.

The latest transaction at The Marq also sets a new benchmark for the project, surpassing the $5,262 psf that was achieved in 2007 for a 16th floor unit which was sold for $15.8 million, according to caveats data. Both units are of the same size, 3,003 sq ft.

The latest record breaker at The Marq, which involves a lump sum price of $17.5 million, is understood to be on the mid-to upper levels of the 24-storey project but is not a penthouse unit. The freehold development received Temporary Occupation Permit (TOP) earlier this year and with the latest transaction, slightly over 40 per cent or 28 of the development’s 66 units have been sold.

The penthouse unit at The Orchard Residences that held the previous record price of $5,600 psf is on the 53rd level and involved a lump sum price of $28.269 million. However, a caveat for that 5,048 sq ft unit does not appear to have been lodged, probably because the high net worth party who bought the apartment did not take any financing for the purchase and wants to preserve anonymity.

The Orchard Residences, which received Temporary Occupation Permit late last year, is on a site with a 99-year leasehold tenure starting around March 2006.

Pointing to a dearth of condo/apartment transactions above $5,000 psf since the previous property boom in 2007, Jones Lang LaSalle’s head of residential and national director Jacqueline Wong attributes this to a lack of new project launches in the ultra-luxury segment, as well as the fact that demand from foreign investors in this segment has yet to recover to the level seen in 2007 because of the current state of the global economy.

Date: 18 May 2011 | For the full report, please visit http://www.businesstimes.com.sg

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SC Global posts Q1 profit of $72.8m

SC Global Developments’ net profit rose to $72.8 million for the first quarter of this year, 15 times the restated $4.78 million net profit for the 2010 corresponding quarter.

The earnings growth was due to higher revenue, higher gross margins and the effects of accounting changes.

The group saw higher revenue recognition for its Singapore development projects as construction progressed.

SC Global has adopted the Financial Reporting Standard INT FRS 115. Accordingly, the Q1 2010 results were restated to be comparable to those of Q1 2011. The net profit for Q1 2010 was restated at $4.8 million, instead of the $13.4 million reported last year.

Group revenue for the three months ended March 31, 2011, rose 29 per cent to $221.2 million, from a restated $171.9 million in the same three months of 2010.

Turnover for Q1 2011 included contributions from progressive revenue recognition of SC Global’s development projects in Singapore, including The Marq on Paterson Hill, Hilltops, Martin No 38, and Seven Palms at Sentosa Cove.

The three months saw gross profit margins of 48 per cent against 21 per cent a year earlier.

Earnings per share rose to 17.59 cents in Q1 2011 from 1.2 cents a year ago. The group had cash and cash equivalents of $232.1 million at the end of Q1 2011 as compared to $199 million at the end of 2010.

Looking ahead, SC Global said that while speculative and sub-sale activity may remain subdued in light of the property measures announced by the government in January 2011, there seems to be continued demand from genuine home buyers and long term investors.

Date: 13 May 2011 | For the full report, please visit http://www.businesstimes.com.sg

Staying in the moment with his landbank

SC Global has a considerable inventory of about one million square feet gross of saleable floor area in various luxury residential projects in Singapore, but chairman and CEO Simon Cheong is in no hurry to sell it off, mindful of the difficulty of finding replacement landbank in Singapore’s top-end segment, which is his company’s niche.

In fact, replenishing the landbank will be the biggest challenge facing Singapore’s luxury residential market this year, he argues.

The one million sq ft gross floor area of space available for sale comprises units which have yet to be sold in existing projects such as The Marq on Paterson Hill, Hilltops, Martin No 38 and Seven Palms, Sentosa Cove, as well as a project that the group has yet to develop on the site of The Ardmore.

‘For SC Global, we decided that we shouldn’t sell ourselves short by selling out too early, prematurely, when to replace our kind of high-end landbank literally a few minutes away from the Orchard Road area is going to be tough.

‘So normally we don’t price our projects to sell ourselves short. The way we price is (based on) my replacement cost. I have to make a qualification because I have to be very careful here not to go into other people’s turf because we’re just high-end players. We play in the 9, 10 and 11 districts.’

The situation is unlike the case for the mass-market where government is always there to supply land, he adds.

Mr Cheong suggests that in five to 10 years’ time, finding land in Singapore’s choicest districts near Orchard Road could become as difficult as finding development land today in New York’s Central Park and London’s Hyde Park locations.

He also stresses that SC Global’s concept of launching a project is not of the run-of-the-mill variety. ‘We do put limited units for sale but we don’t have launches with big fanfare, balloons outside, like a carnival. It is very different, because this is high end. And the ticket item we are talking about is huge. So we have to adapt the whole marketing.

Date: 12 April 2011 | For the full report, please visit http://www.businesstimes.com.sg

Prices of top-end condos may cruise along this year

THE luxury condominium market rode a strong wave of recovery in 2010. New projects that were launched saw a reasonable take-up rate and a few existing projects that were put in cold storage during the financial crisis found buyers for multiple units.

As such, land-hungry developers started hunting for development sites in the prime districts again. By end-2010, it was clear that interest in luxury homes had returned and looked set to continue in 2011.

As response to new launches in the mass and mid-tier segments picked up in the second half of 2009, developers began to test the market with new luxury projects.

Knowing that there was ample liquidity in the market, they stepped up supply in 2010 even though the take-up rate was modest.

Transactions last year showed that luxury prices recovered some 20 per cent from end-2009 levels but were still about 10 per cent below the 2007 peak.

Institutional investors seized the opportunity to acquire multiple units in existing developments and projects that were nearing completion.

The interest in luxury homes pushed developers to acquire prime development sites via collective sales.

Rents in the prime residential districts (Core Central Region) have recovered by 18.6 per cent from end-2009 levels and will likely remain firm for the rest of the year.

Buyers who are looking for rental return will have to be content with a 2-3 per cent yield on luxury homes based on current price levels and rental rates.

Another 8,400 new homes are expected to be completed this year, with 440 units coming from luxury projects such as The Marq On Paterson Hill and Cliveden At Grange. Competition for top grade rents will be keen. As such, those who are buying luxury properties this year should be prepared to hold on to their units for three to five years before considering selling for capital gains.

Will luxury condos be the outperformers in 2011?

Date: 03 March 2011 | For the full report, please visit http://www.businesstimes.com.sg

SC Global’s Q4 profit jumps 72% to $57m

February 25, 2011 Leave a comment

SC Global Developments has posted a net profit of $57.1 million for the fourth quarter, up 72 per cent mainly on account of higher margins and lower operating expenses.

For the full year, net profit was up 21/2 times to $144.2 million from $56.9 million.

Earnings per share were 150 per cent higher at 35.97 cents from 14.39 cents and net asset value per share was $1.56, up 29 per cent.

The luxury property developer has proposed more than tripling the total dividend payout to five cents from 1.5 cents previously.

The 2010 dividend will comprise a first and final dividend of two cents and a special dividend of three cents per share.

SC Global said based on yesterday’s closing share price of $1.34, the payout gives a dividend yield of 3.8 per cent.

Group revenue for the fourth quarter of 2010 fell 17 per cent to $228.3 million due mainly to the decline in revenue from its Australian unit AVJennings (AVJ) as a result of the sale of its contract building operations in August 2010.

Contributions from progressive revenue recognition came from The Marq on Paterson Hill, Hilltops and Martin No. 38, the group’s development projects in Shenyang, China, as well as AVJ.

Construction of its project Seven Palms, Sentosa Cove also progressed to the stage where its maiden revenue recognition was included in the quarter. In addition, revenue was also recognised from the sale of a super penthouse unit at The Boulevard Residence during the quarter.

On the outlook following last month’s property measures to address affordability concerns and to also weed out speculators in the market, it said ‘genuine home buyers and long-term investors have been less directly affected by these measures.

‘The group’s business in Singapore has catered more towards these types of genuine home buyers and long-term investors who seek suitable high-end luxury residences befitting their particular lifestyle.’

Date: 24 February 2011 | For the full report, please visit http://www.businesstimes.com.sg