Another Marina Bay condo sees million-dollar loss
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SINGAPORE: A four-bedroom condominium unit at Marina One Residences changed hands this month for S$4.26 million, which meant a capital loss of S$1.154 million for the seller, according to property portal 99.co.
The transaction is the largest recorded loss and the first million-dollar one for resale units at Marina One Residences, whose lease started in 2011. The former owner paid S$5.415 million for the unit in 2018, which translates to S$2,406 per square foot (psf).
“At that point, their entry price was already 5% below the project’s average of S$2,539 psf. However, 2018 also happened to be the year Marina One hit its price peak since the initial launch in 2014,” 99.co noted.
This recent loss came on the heels of another unit at Marina Bay Residences that sold last month at an eye-watering loss of nearly S$3.23 million.
This sale at Marina One Residences involved a 2,250-sqft fifth-floor unit, which came to S$1,894 per square foot (psf). This is around 10% under the average price of S$2,104 psf, noted 99.co. The property portal also pointed out that the price per square foot is around 3% lower when compared to the broader resale market in the area.
Moreover, this year, four-bedroom units at Marina One have fetched an average price of S$2,197, which means the buyer of the fifth-floor unit got it at 14% less than that.
The buyer of the unit certainly got a good bargain, given that it has big balconies, separate wet and dry kitchens, dual ensuite bedrooms, and private lift access. All that adds to its favour, given that layouts have been getting smaller at the most recent Core Central Region (CCR) property projects.
Interestingly, only 21 resale transactions at Marina One have been profitable. The highest profit a seller made was S$567,450. More than twice that figure have been unprofitable, however, with 43 transactions seeing losses.
99.co noted that this year alone, the most recent resale is the 15th unprofitable transaction at the project.
“This underscores how vulnerable short-term owners can be in volatile markets like Marina Bay. Unlike suburban projects that often see more stable demand from local owner-occupiers, CCR developments tend to be more sensitive to macroeconomic shifts, foreign buyer sentiment, and government cooling measures. Entering at the wrong point in the cycle can quickly translate into losses if the holding horizon is too short,” the report added.
It also said that the good news is that property prices in Singapore’s Core Central Region appear to have become more affordable, and those interested in the area but previously discouraged by high prices may now give it a look. /TISG
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