Two units at The Sail changed hands with different outcomes - one at a loss of 34.1% over four and a half years; the other, for a gain of 25.8% over nine years. For more properties around The Sail @ Marina Bay, please click HERE

At The Sail @ Marina Bay, two recent transactions reflected a divergence in prices because of different floors and views of the units. The mixed fortunes were also due to the timing of their purchases, say property agents. A recent sale was that of an 883 sq ft,two-bedroom unit on the 48th floor of the 70-storey tower facing Marina Bay that changed hands for $2 million ($2,266 psf), according to a caveat lodged on Feb 18. The seller purchased it in December 2006 for $1.59 million ($1,801 psf) in a sub-sale, according to a caveat lodged then. The seller therefore made a 25.8% capital gain.

An 861 sq ft, two-bedroom unit on the 28th floor of the adjacent 63-storey tower facing the CBD was sold for $1.45 million ($1,684 psf), according to a caveat lodged on Feb 17. The seller paid $2.2 million ($2,555 psf) for the unit in a resale in June 2011, thus seeing a loss of 34.1% in 4½ years.

With the economic uncertainty, there are more motivated sellers on the market. “With liquidity drying up, there could be more owners forced to accept low-ball offers,” says Alan Cheong, head of research at Savills Singapore.

Two 1,647 sq ft, four-bedroom units that recently changed hands also reflected the same divergence in outcomes. One was on the 23rd floor of the 63-storey tower; it was sold for $3.2 million ($1,943 psf), based on a caveat lodged on Feb 2. The unit was purchased for $3.95 million ($2,400 psf) in a sub-sale in July 2007, reflecting a drop in capital value of about 19%.

The other four-bedroom unit located two levels above, on the 25th floor of the same tower, fetched $3.38 million ($2,052 psf), according to a caveat lodged in December. It was purchased at launch in October 2005 for $2.46 million ($1,494 psf), thus the seller recognised a gain of 37.3% in a decade.

The 1,111-unit The Sail was completed in 2008 and was the first residential project to be launched in Marina Bay. The 70-storey Tower 1 was launched in September 2004 at an average price of $950 psf, whereas the 63-storey Tower 2 was launched in October 2005 at an average price of $1,850 psf. There were queues ahead of the launch in 2005, and all units were sold within a very short time.

According to David Lim, senior marketing director of ERA Realty, most of the buyers at The Sail today are investors, as they feel that current prices are at attractive levels.

This article appeared in the City & Country of Issue 718 (March 7, 2016) of The Edge Singapore.