
Singapore Luxury Condos' Early Struggle Shows Boom's Limits
The W Residences Marina View condominium began pre-sales last Saturday, and buyers booked only two of its 683 units over the weekend, according to people familiar with the matter who asked not to be identified sharing private information. The complex is located in the heart of the country's central business district, a short walk from skyscrapers that house global financial institutions and multinational companies.
The units' preview prices started from about S$3,200 ($2,491) per square foot, which means the cheapest one-bedroom units were advertised for S$1.8 million. Five-bedroom units were priced at S$11.6 million and up, according to marketing materials seen by Bloomberg News.
The project's weak debut shows how property developers face an uphill challenge trying to attract wealthy home-buyers to luxury towers in Singapore's iconic business district, which lines its downtown waterfront. The government in 2023 doubled already hefty taxes on foreigners' property purchases, while locals have gravitated to suburban private homes that are closer to schools and other amenities.
Last weekend, LyndenWoods, a mass-market condominium project about 9 kilometers (5.6 miles) from the downtown luxury residence, sold over 94% of its 343 units in a single day, despite new curbs that were added in early July. Average pricing was about S$2,450 per square foot.
Overall private home prices in Singapore have climbed roughly 40% over the past five years. However, apartment prices within the so-called core central region — which covers the CBD and other high-end neighborhoods — have lagged behind, with a smaller increase of about 19%.
The W Residences Marina View is being built by IOI Properties Group Bhd, a Malaysian developer that paid S$1.5 billion in 2021 for the site. The project will be managed by Marriott International. A spokesperson for the developer said there was 'strong interest' from individuals who were invited to its private previews, and 'it's natural that buyers are taking a measured approach amid a wave of new launches' in the area.
The 99-year leasehold development has yet to be built, and buyers could pull out in the early stages of a sale if they pay a fee.
'Developers are likely to be more cautious and recalibrate their land acquisition plans following the poor demand' for properties in the prime city center, said Nicholas Mak, chief research officer at property portal Mogul.sg. 'They will avoid a price war at all costs.'
A nearby high-end residential project called Skywaters Residences, which is part of a broader development backed by Alibaba Group Holding Ltd. and local developer Perennial Holdings Pte, has sold just two of its 190 units since it launched more than a year ago.
One 7,761-square-foot apartment sold for S$47.3 million, while the other smaller unit went for S$30.9 million. Such prices are comparable with mansions in land-scarce Singapore.
Local property giant City Developments Ltd., which is building another 'ultra-luxury development' in the business district, hasn't set a launch date for its Newport Residences project, which will feature serviced apartments and 246 residential units.
Developers have largely refrained from offering major discounts, betting that they can still attract wealthy locals and foreigners who have residency in Singapore, granting them lower property levies.
--With assistance from Gabrielle Ng.
(Updates with analyst comment in ninth paragraph.)
More stories like this are available on bloomberg.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)

Business Standard
21 minutes ago
- Business Standard
Rupee closes near one-month low; ends 5 paise lower at 86.42/$
Indian Rupee closed near a one-month level on Wednesday, even as trade deals signed by the US gained pace ahead of the deadline. The domestic currency closed 5 paise lower at 86.42 against the dollar on Wednesday, according to Bloomberg. The rupee has witnessed nearly 0.94 per cent depreciation in the current calendar year. In the previous session, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.41 against the greenback. Rupee traded flat in a narrow range, with marginal movement against the dollar, Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, noted. The dollar index also remained steady around 97.40 as markets awaited further cues, he said. "Domestic capital markets gained, while Federal Reserve Chair Jerome Powell's recent speech kept the dollar range-bound. Attention now shifts to next week's U.S. interest rate decision, which will be a key directional trigger. Rupee is expected to trade within a range of 85.80–86.70," Trivedi said. On the tariffs front, the US President Donald Trump announced a trade deal, imposing a 15 per cent tariff on Japanese exports to the US. The Trump administration had also reached an agreement with the Philippines setting a 19 per cent tariff on their exports. Equity and currency markets in the Asia region rose after the deal announcement. Meanwhile, the dollar index, a measure of the greenback against a basket of six major currencies, was up 0.1 per cent higher at 97.39. Exporters are advised to hold off on booking, with a stop-loss at 86.25, as foreign portfolio investors (FPIs) continue to sell, analysts said. FPIs sold equities for the second straight day, worth ₹3,548.92 crore, taking the total outflows in July to ₹5826 crore. Importers, meanwhile, may consider buying on dips for near-term cash requirements, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "The currency is expected to trade within a narrow range today as markets await the Reserve Bank of India's sell/buy swap data for May, which will offer insight into short positions, along with the Real Effective Exchange Rate (REER) data for June 2025," Bhansali said.
&w=3840&q=100)

First Post
2 hours ago
- First Post
Trump on Asia deal spree, Taiwan aims to seal trade pact in new round of talks as deadline nears
Negotiators from the island-nation reached the US on Wednesday for tariff talks, as the delegation hopes to clinch a deal with US counterparts. The fourth round of talks is being attended by Vice Premier Cheng Li-chiun and trade negotiator Yang Jen-ni read more As US President Donald Trump secured trade deals with two Asian countries back-to-back, Taiwan is hurrying to get in line and seal its own agreement with Washington as the August 1 deadline nears. Negotiators from the island-nation reached the US on Wednesday for tariff talks, as the delegation hopes to clinch a deal with US counterparts, a source has told Bloomberg. The fourth round of talks is being attended by Vice Premier Cheng Li-chiun and trade negotiator Yang Jen-ni. STORY CONTINUES BELOW THIS AD The source said that discussions between the two sides have been 'constructive' so far, adding that the final tariff rate will ultimately be decided by Trump. The Taiwanese delegation's visit comes as the country's neighbours successfully reached trade deals with the US as announced by the president. Japan and Philippines seal the deal Trump announced Tuesday a 'massive' trade deal with Japan. He said that under the deal, 'Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90 per cent of the Profits'. Japanese Prime Minister Shigeru Ishiba said that the autos levy had been cut to 15 per cent, sending Japanese car stocks soaring, with Toyota and Mitsubishi up around 14 percent each. The Nikkei rose 3.5 percent. Trump agreed Tuesday to reduce threatened tariffs on the Philippines, but only by one percentage point, after what he termed a successful meeting with his counterpart Ferdinand Marcos. The Japan agreement, along with another pact with the Philippines also announced on Tuesday, means Trump has now secured five agreements since his administration promised in April '90 deals in 90 days.' US-Taiwan trade Taiwan's increasing dependence on the US market has heightened its urgency to reduce tariffs. Last year, Taiwan recorded a trade surplus of around $65 billion with the US, driven by strong demand for tech products essential to the AI boom. In April, Trump imposed a 32 per cent tariff on Taiwanese goods before pausing it. This gave Taipei the time to hammer out a deal with the US. STORY CONTINUES BELOW THIS AD Taipei had also committed to increasing investment in the US and tightening export control loopholes on high-tech products, an area of concern for Washington as it seeks to limit China's technological advances amid fears that Beijing could gain a military advantage. With inputs from agencies


Mint
2 hours ago
- Mint
HK Builder Lai Sun Seeks More Bank Support for Loan Refinancing
(Bloomberg) -- Hong Kong developer Lai Sun Development Co. has been working to win banks' backing for a HK$3.5 billion ($446 million) loan refinancing deal, but after about six months of talks, nearly half the lenders still aren't on board, according to people familiar with the matter. The property firm — controlled by local tycoon Peter Lam — has secured commitments from nine out of the original 19 lenders for the five-year refinancing, said the people, who declined to be identified discussing private matters. The existing loan matures on Oct. 5, according to Bloomberg-compiled data, adding urgency to Lai Sun's efforts. Even if Lai Sun doesn't manage to secure the target amount from all banks, it could still opt to partially repay the loan and refinance the rest, the people said. Lai Sun's financing challenges underscore the depth of Hong Kong's years-long property downturn, which has made banks cautious about lending to developers in the city. The company has already spent longer on its deal than property giant New World Development Co. took to complete its recent record loan refinancing, a process that only materialized after months of negotiations and meetings between banks and regulators. Lai Sun's original loan was backed by its Cheung Sha Wan Plaza office tower and shopping center in Hong Kong's Kowloon district, and the refinancing would be too. The company has proposed an all-in pricing of about 160 basis points over the Hong Kong InterBank Offered Rate for the refinancing, the people said. The cash flow generated from Cheung Sha Wan Plaza would be sufficient to cover interest expenses on the existing borrowing, according to the people. Lai Sun said in its interim results that the tower had an occupancy rate of 92.1%, generating HK$131 million in rental income for the six months to Jan. 31, down from HK$143 million a year earlier. Lai Sun Development is the property arm of Hong Kong conglomerate Lai Sun Group, which is also known for its media and entertainment businesses. The parent's financial position has been under the spotlight since last year, when it shut some of its restaurants in Hong Kong, including Michelin-starred ZEST by Konishi. The real estate unit reported a net loss of about HK$117.8 million for the six months ended January, narrowing from the year-earlier period. Property sales fell 33.2% to HK$617.2 million. Separately, Lai Sun is also in talks to refinance another bank loan backed by some of the company's onshore assets, including Hong Kong Plaza in Shanghai, other people said. The HK$3.97 billion loan is due to mature in early 2026, they added. Lai Sun didn't immediately respond to a request for comment. Lai Sun had HK$34 billion of total liabilities as of Jan. 31, according to its latest interim report. Its 5% dollar note with $493 million outstanding is trading at about 52 cents, according to data compiled by Bloomberg, a distressed level reflecting investor concerns. More stories like this are available on