The Sail is not for sale

nicely written article on the hype about The Sail

When the media is quoting various real estate analysts saying that real estate markets are up by 10% or so from the beginning of this year, buyers and agents, who are involved in The Sail resale market don’t even have time to stop and read such nonsense. They are too busy trying to get more units on the market as demand by far outstrips supply. As one agent told me, there are many buyers but never enough serious sellers. It also means that selling a unit there is just a matter of price and the deal can be done very fast – it’s almost like commodity dealing, and that makes the ownership in The Sail more exciting as there is lots of liquidity, compared to other real estate projects.

Just about three months ago some Marina Bay front view units were offered as low as 1,450-1,500psf. Some even sold at just above 1,000psf around the beginning of the year. Now some high floor choice units were sold at 2,550psf around early June, and the price is pushing higher by day. Don’t even try to calculate the percentage increase. it will leave you breathless.

While the mass media was reporting around late March – early April that real estate is in the doldrums, I was asked by my friend, a serious investor from Taiwan, to take him to look at what The Sail is about. After seeing just one unit with the full Marina View, he paused for a minute, then asked me why I didn’t push him much earlier to buy into such a postcard view. He and his fellow business partner from Cambodia, apparently one of the richest men there, both in the luxury and branded perfumes and cosmetics business, are avid real-estate investors, especially looking for choice units with spectacular views, be it a Hong Kong Harbour view or a Shanghai Pudong view.

In Singapore only the Marina Bay view can match such world class vistas and for now its only the Tower 1 in The Sail that got such units. My friend and his business partner, giving instructions over the phone, tried to buy some 6 units on the spot but most of their cheques were rejected at around just under 1,900psf.

In the lobby I met my acquaintance agent. She, like a few others, is specialising in nothing but The Sail. She told me that she is accompanying a small group of Indonesian buyers, who have a combined budget to buy 10-15 units and are hunting for mostly Marina Bay view units. She added that there is another group of Indonesian investors as well, searching for units with the total budget of $15mil, and looking for units only with full Bay view. That was only one weekend that I went there and saw it with my own eyes over just an hour or so on the site. There were barely a few choice units on the market and these were all snatched up in no time at around 1,850-1,950psf and now some of these are back on the market at 25-40% higher in a matter of months.

The Sail, with its 1,111 units is the biggest condo in Singapore and probably in the region. The project comprises 2 towers with some 30 different units configurations. The 70 story Tower 1 is facing the Marina Bay. The front facing units are only stacks 1 to 6. The stack 1’s (most northern side) view is not bad, but partially obstructed by the NTUC building so the choice units will be above the 40th floor. Stack 6 together with stack 1 are the bigger units. Both have got some back facing rooms and pillars. The best stack out of these 30 is a two-bedroom stack 4, right in the middle of the building, as it got a total net space without any pillars. Note that only some 10-15% of the total number of units in The Sail are actually facing the Marina Bay. The shorter Tower 2 is facing the ’pool view’, the upcoming MBFC and the One Raffles office building. Its not a bad investment at all and its stack 18 is the only one that has got a decent Marina Bay view, but the prime choice units will be in Tower 1, hence the stratospheric prices achieved.

The relatively few choice units with penthouses are owned by tycoons such as Dr. Modi, the Chairman of Spice Corp, Sam Goi the local popiah king and Thai Beverage tycoon billionaire Charoen Sirivadhanabhakdi.

The major selling point of The Sail is its, rare for Singapore, unobstructed views of Marina Bay and the surroundings. In most of the flatland Singapore there are basically no spectacular views. Therefore most of the people here are not aware of the major attraction and investment power that a spectacular view can deliver. Every taxi driver in HK knows that the higher you go on The Victoria Peak, the price is climbing higher and the units facing the harbor can command as much as 30-50% premium. But this concept is still relatively new for Singapore.

Mark my words, in 2-3 years the epicenter of life, fun and shopping will shift significantly to the Marina Bay and the surrounding area and the location will become a regional icon.
Source: http://www.property-report.com/singapore-property-magazine.php?con_id=885&date=072009