30 Units Sold At Martin No. 38

Source : The Straits Times, Sep 9, 2008

SC Global sells loft-style apartments at higher prices than expected

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.