Singapore's tallest condominium project will only be ready in 2009 at the earliest but that has not stopped Asian buyers from joining the rush for one of the most prestigious addresses in town.
At least 30 percent of the buyers at the soft launch of Tower 2 of the Sail at Marina Bay were from the region, especially China, Hong Kong, Indonesia, Taiwan and India, according to developer City Developments Limited (CDL).
Fewer than 30 apartments remain unsold in the 430-unit Tower 2 where the price of a one-bedroom unit measuring 57-72 square meters (613-775 square feet) can set a buyer back by at least 620,000 Singapore dollars (366,864 US).
But even that is seen as a bargain by some regional investors.
Property analysts said the recovery in property prices here has lagged that of neighbouring economies by 40-60 percent since the region was hit by the Severe Acute Respiratory Syndrome (SARS) health epidemic in 2003.
SARS shook up the travel industry and slowed down the economies of much of East Asia, including Singapore, six years after a regional financial crisis also hit the property sector.
According to Chua's calculations, property prices in Hong Kong have shot up by 60 percent since the SARS outbreak, while in Kuala Lumpur, the increase is about 40 percent.
Prices in Shanghai, increasingly on the radar screens of investors, are up also by 40 percent, Chua said. By comparison, prices in Singapore rose by less than 10 percent over the same period, he said.
Apart from the attractive valuations, foreign buyers are also attracted to Singapore's status as a stable country and for those planning to send their kids to schools here, the education system, rated as one of the best in Asia, is a plus factor, analysts said.
A recent Jones Lang LaSalle study said more than half the buyers of new residential projects in the September quarter were foreigners who went mostly for the high-end units.
According to the study, prices of top-tier apartments at the end of June were still about 32 percent below their peak just before the 1997 Asian financial crisis.
"Singapore's luxury residential prices have remained stable in the past few years, lagging behind other major Asian cities like Shanghai, Beijing, Hong Kong and Bangkok," the study said.
Things have begun to stir this year and share prices of property companies in Singapore have enjoyed a mini-boom after the government announced in July new measures to boost the market, including a relaxation of certain rules to allow foreign ownership.
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