Why building a new luxury condo to top The Marq on Paterson Hill will be tough

[SINGAPORE] A recent report by Knight Frank Singapore highlighted that interest in prime homes here was steady in the first six months of 2026, with wealth from new citizens and permanent residents (PRs) helping to drive demand for luxury non-landed residential properties.

Topping the transactions of prime non-landed homes in the first half of the year was the sale of a 6,232 square foot (sq ft) unit at The Marq on Paterson Hill for S$37 million, or S$5,937 per square foot (psf). 

The price psf for the above transaction exceeded the price psf of units sold at the much newer 21 Anderson in H1.

Both The Marq and 21 Anderson are luxury freehold condos located in the Orchard Road vicinity. While 21 Anderson was completed in 2025, The Marq is a much older development that was completed in 2011. 

The price psf of recent transactions at The Marq also generally top that of peer Nassim Park Residences, which was completed in 2011 and has a much-coveted Nassim Road address.

The Marq’s attributes

Kudos must go to The Marq’s developer SC Global for creating a product that has clearly stood the test of time. 

Founded by Simon Cheong, SC Global is synonymous with building luxury homes in Singapore. Its portfolio includes Hilltops in the Cairnhill area, Sculptura Ardmore at Ardmore Park and The Ladyhill along Lady Hill Road.

The Marq possesses the attributes that make for a differentiated product that sits at the pinnacle of the non-landed housing market here.

The development occupies a sizeable 124,000 sq ft site in the Orchard Road area and comprises solely large units. Two towers house 66 units – a mix of four-bedders from 3,057 sq ft, five-bedders from 6,039 sq ft and penthouses. 

Thoughtful layouts, premier finishings, high-quality facilities and good property management among others add to The Marq’s appeal. There is a sense of arrival for visitors to The Marq, which sits on elevated grounds.

The signature tower’s private cantilevered lap pools in every unit helps create the wow factor.

Is it time that a new luxury condo project emerges which surpasses The Marq and becomes the new epitome of luxury condo living?

A new luxury project could possibly have much stronger emphasis on environmental-friendly elements and nature versus one conceived earlier this century.

Imagine a new freehold project in the Orchard Road vicinity comprising four-bedders of 3,500 sq ft, five-bedders of 4,500 sq ft, six-bedders of 5,500 sq ft and penthouses. Assuming prices are between S$6,500 psf and S$7,200 psf, the absolute prices of the units, excluding the penthouses, could be between about S$23 million and S$40 million. 

Luxury condo demand

Importantly, demand likely exists for new luxury condos in Singapore. The Republic is home to a rising number of wealthy residents. In a volatile world, stable Singapore may see more rich people clamouring to become its PRs or citizens.

A Singapore citizen buying a first home does not pay additional buyer’s stamp duty (ABSD), while a PR first-home buyer pays 5 per cent ABSD. A non-PR buying any home here pays 60 per cent ABSD.

Generally, only Singapore citizens can buy private landed homes, while foreigners can buy private non-landed homes.

A wealthy PR could be keen to buy a luxury condo unit. A new citizen who spends much time out of town may also find a luxury condo unit a better fit than a landed home.

Meanwhile, some wealthy Singaporeans might like to trade a large prime landed home for a high-end condo unit because they do not need the larger space of the landed home, or want a condo home as it is easier to maintain, or seek to free up some capital.

The Urban Redevelopment Authority has exciting plans for new homes, shops and public spaces to be built in the Paterson area, near The Marq.

However, while many luxury condo buyers may desire freehold units, new private housing state land tender sites generally come with 99-year leases.

En bloc sites

The Marq was built on an en bloc site that was previously occupied by Paterson Tower. 

A developer looking for freehold sites in the Orchard Road area will likely need to look in the en bloc market.

However, buying a freehold Orchard Road area housing site through a collective sale is tough these days. Often, there is insufficient support among strata owners of older freehold Orchard Road area condo developments for an en bloc sale.

As the share of freehold homes in the housing market declines, some owners of freehold units may be reluctant to sell as they might be hoping for the premium between freehold and leasehold homes to rise.

Importantly, while time pressure may drive owners of older condo developments that sit on initial 99-year land leases to exit as the number of years remaining of the lease tenure diminishes, this does not apply to freehold developments.

Many owners of freehold condo units in prime areas such as the Orchard Road vicinity are locals owning multiple homes or non-PR foreigners.

Recycling proceeds from the en bloc sale of one home to buy another home in Singapore is tricky for locals owning multiple homes and non-PR foreigners because of ABSD. A Singapore citizen pays 20 per cent ABSD for buying a second home and 30 per cent ABSD for buying a third and subsequent home.

Furthermore, super-luxury condo projects may take longer to build and sell versus other condo projects. The risks are high if a developer of a luxury project has to build and sell all the homes within five years of buying a site before hefty financial penalties apply. 

In short, while a developer may yearn to develop a top-notch condo project, the said developer might not be able to get such a project off the ground because it can’t snare a suitable site or is not sufficiently confident of selling all the housing units in a timely manner.

Wealthy individuals hunting for a new dream condo home in Singapore might not shy away from paying lofty absolute prices or high psf prices for the right product. However, finding an exceptional best-in-class new condo home could be tough.