Martin Modern – A Worthy Investment?
A project review on Martin Modern at Martin Place by Guocoland
Martin Modern at Martin Place will launch this July 2017. It is one of the third luxury development launch since 2016 till now in prime district 9 (Orchard, River Valley region) after OUE Twin Peaks at Leonie Hill, Cairnhill Nine by Capitaland and Peak II @ Cairnhill by TG. The first 2 are 99 years leasehold properties while the latter is a freehold development.
Let’s take a look at the various analysis to determine if Martin Modern is worth the investor’s penny.
Land Bid Prices
Much hype has evolved since Martin Modern has been splashing the headlines of the media with its land bidding prices against a total of 13 bidders.
This signifies strong bullish sentiments from the top developers in Singapore on the future potential of this land that Martin Modern is sitting on.
Potential buyers and investors can expect a high potential upside on their return-on-investments in the years to come, as proven by her neighbors such as Martin Place, River Place and Pier@Robertson to name a few.
Market Analysis of Comparable Projects
Talk about Robertson area and the following properties will come to one’s mind:
Rivergate, The Quayside, Robertson 100, UP@Robertson Quay, The Pier, Martin 38 and Martin Place Residences just to name a few.
To understand how the property prices here are doing and if its a worthy bet, let’s take reference from the nearest neighboring project, Martin Place Residences.
For illustration (taken from SRX), a 2 bedroom unit of size 1,044 sqf purchased in June 2009 at a launch price of average of $1,436 psf had fetch a selling price of $2,088 psf based on the recently transaction data, translating to a profit of $652 psf or $680,688 sold on Nov 2011.
Data from SRX Agentnet
As can be seen from the chart below, the demand for the residences at Martin Place and Robertson Quay area is strong with buyers, being one of the top investment homes rated by home buyers. There is a good proven record of high appreciation given its prime location amidst a unique lifestyle area.
Drawing a comparison to similar 99 years leasehold properties in District 9, let’s take a look at recent hot-selling projects namely The Orchard Residences, OUE Twin Peaks, UP@Robertson and Cairnhill Nine. The average property prices transacted at an average of $2,600 psf signifying a strong support in this area with home buyers and investors.
With Martin Modern expected launch price to be from $2,200 psf, it is expected that it will be well positioned priced-to-sell project with the 2 bedrooms starting from only $1.8 million. It is expected that Martin Modern will be a sell out project given the current strong buying sentiments in the luxury market.
Looking at the rental yield and comparing the nearby properties in the District 9 area, we take reference from Martin Place Residences given its location being next to Martin Modern. The recent rental transaction signifies there is still a strong rental demand given the average rental of $5.70 psf, clocking one of the highest rental yield in the market.
Given the above analytical data and considering that there is a lack of land supply in the vicinity of Martin Place given the tightening of the GLS (government land sales), there is strong support to say that the prices will likely edge up in the years to come. It is also fair to say that the rental demand will continue to be strong, as can be seen from the heuristic data in district 9, much to the good news of investors.
Find out more about Martin Modern project details.