Martin Modern Condo by Guocoland Great World City MRT

Martin Modern – Martin Place Condo by Guocoland Great World City MRT. Tender Site by First Bedok Land near Orchard City Centre

Martin Modern 99 Years Leasehold Development

Guocoland is a developer under the Malaysia Hong Leong Group that is headed by Quek Leng Chan. In 2016, Guocoland placed a winning bid of S$595.1 million on a 1.6 hectare land on Martin Place. The price of a square foot is hence S$1,239 making it the highest for a pure residential site since 2009. But they will only get a 99-year leasehold of the land and they intend to build condos on it. Is this a worthwhile investment?

99 Year Leasehold Development Martin Modern

The location of this site is a desirable one. It is at the corner of River Valley Close and Martin Place so the area will have an address in the district 9. The site is just a short walk from the Great World MRT Station that will be developed in the future. For schooling needs, the property is near the River Valley Primary School making it an ideal choice for families with school-going children. Martin Modern Guocoland is a 99 years leasehold development located right in the heart of the city

Martin Modern Singapore 99 Years Guocoland

The number of units that Guocoland can build on this site is 450. There are restrictions with one side allowing up to 20 storeys and the others allowing 30 storeys at maximum. According to property consultants, the breakeven cost for developing the land is estimated to be S$1800-S$1910 psf. With the current price of S$2000-S$2200 psf in the area, the profit margin is quite low if the property was to be launched. This estimation are based on properties near the area including the freehold Rivergate and Martin Place Residences and the 99-year leasehold Cairnhill Nine. All these projects sold fast but the Guocoland development units will be smaller (average size of 1067 square feet) than those at Rivergate and Martin Place which could impact on the sales.

The development will have high end products like those seen in Leedon Residences and Goodwood Residence. Martin Modern is a 99 years leasehold development. The design process is still ongoing and the launch date is yet to be determined. The earliest a launch can be seen is late 2017 but launching then will mean a lower return on investment compared to if they wait a little longer. Launching in 2018 or even 2019 will mean that the selling price will be higher. The price of high end homes in Core Central Region (CCR) of Singapore is rising with time.

Martin Modern Guocoland Singapore

Guocoland has until June 30t 2021 to complete the project and sell most of the units if they would like to avoid paying the 15% additional buyer’s stamp duty on the land. Currently however, the prices of high end condos are going down. This is due to the locations being hard to buy and government land sales (like this one) being rare. Property agents however say that the demand may rise soon and the prices could peak in a few years’ time. That should be the best time for GuocoLand to start selling so they get high profits. If the project is to launch now, the profit margins will be very low. In the long term however, the prices could go down since the market determinants are quite dynamic. Only time will tell if this was a worthwhile investment for Guocoland or not.

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