Most of the PRs looking to purchase for their own use are currently living in condominiums in the city, adds Tay. “They are attracted to the resort lifestyle of Sentosa Cove, as well as the prospect of owning a bungalow with more living space for the whole family, especially as more are choosing to work from home amid the pandemic.”
The nationalities of the PRs are also more varied, notes Tay. “I have encountered Indonesians, Indians, Chinese, an Italian family, as well as other Europeans and Americans.”
Most foreigners who are viewing properties in Sentosa Cove have already been in Singapore since early 2020, before the pandemic, he adds. Since the second half of 2020, Tay has noticed an increase in the number of American high-net-worth individuals viewing villas in Sentosa Cove. “Some have flown in for business reasons, and have cleared the quarantine period,” he elaborates. “They are looking at houses to base their families while attending to their business matters in Singapore.”
That is because prices in Sentosa Cove – Singapore’s premier waterfront residential enclave and located within the Core Central Region – look attractive compared to the mainland today. Even at S$1,500 (around US$1,120) per square foot, the average price of a private villa at Sentosa Cove is lower than some of the average prices achieved at new condominium launches in the suburbs (Outside Central Region) such as Parc Clematis (average S$1,630 per square foot) and Clavon (average S$1,640 per square foot), says Han Huan Mei, List Sotheby’s research director. In the city fringe or Rest of Central Region, recent launches such as Avenue South Residence and The Landmark have average prices of S$1,937 per square foot and S$2,137 per square foot respectively, according to Han.
Seafront living
“Moreover, Sentosa Cove is the only address in Singapore that offers seafront living on a resort island, with the enjoyment of space, serenity and security within a gated community,” Han comments. Based on URA caveat data, more than half the homebuyers in Sentosa Cove are foreigners and PRs. Sentosa Cove is also the only address in Singapore where foreigners are able to obtain approval from the Land Dealings Approval Unit to purchase a bungalow for owner-occupation.
“Foreign investors have found assurance in the way the government responded to the Covid-19 pandemic in terms of its support and fiscal policies to businesses, job security and residents’ health and safety,” says Lewis Cha, List Sotheby’s executive director. “We can expect to see more well-heeled foreigners come to Singapore to set up businesses and to bring their families here once travel restrictions are relaxed.”
Based on the bungalow transactions in Sentosa Cove last year, the average price achieved based on land area was S$1,724 per square foot, which is only marginally higher than the average price of S$1,717 per square foot for the four bungalow deals in 2019, observes Han. However, bungalow prices depend on other factors besides location: there is also the orientation of the house, land size, built-up area, architectural details, quality of finish and the age of the house, notes Han. Most of the bungalows are individually designed, especially those along Ocean Drive and Lakeshore View in the North Cove, as well as Cove Way, Cove Drive and Cove Grove in the South Cove.
“Some have orientation towards the sea, others towards the waterway or the golf course, and these factors will definitely affect prices,” adds Han.
Per square foot price equivalent to Serangoon Gardens
After all, there are only around 350 bungalows at Sentosa Cove, Tay points out. Some may argue that Sentosa Cove houses have 99-year leasehold leases. However, the bungalows on the mainland, especially the Good Class Bungalows in the prime districts, which are freehold, are restricted to Singapore citizens only, he adds. “They would have to become Singapore citizens to purchase houses on the mainland.”
Tay feels that prices in Sentosa Cove have slumped since 2011 when cooling measures included a hike in the additional buyer’s stamp duty (ABSD) for foreigners, which was at 10 per cent in December 2011, increased to 15 per cent in January 2013, and was hiked again to 20 per cent in July 2018.
In the heady days of 2010, there were 54 bungalow transactions in Sentosa Cove. The number of sales decreased to just three or four sales annually in 2015 and 2016, says Tay. There was a pickup in 2017 with 10 bungalows changing hands. Following the latest hike in ABSD in July 2018, the following year saw just four bungalow deals. Average bungalow prices plunged from S$2,998 per square foot a decade ago to as low as S$1,100 to S$1,200 per square foot for some transactions last year – the level of recent house transactions in the Serangoon Gardens estate, he notes.
Prices are now starting to recover as buyers recognise the value of these houses relative to those achieved at new flats and condominiums in other parts of Singapore, says Tay.
Based on caveats lodged, so far there have been two bungalow transactions since the start of 2021. A house on Paradise Island sitting on a land area of 9,798 sq ft, changed hands for S$12.7 million (S$1,296 per square foot) in early February. The buyer is believed to be a Myanmar national. Another house on Ocean Drive, sitting on a land area of 9,042 sq ft, was sold for S$13.3 million (S$1,471 per square foot). The buyers are believed to be two Singaporean doctors.
Condominiums – poised for recovery
Interest has also returned to condominiums on Sentosa Cove, where prices have started to recover.
The higher average per square foot price achieved this year is due to two transactions at Seascape – the most premium of the 10 condominium projects in Sentosa Cove, in terms of design quality, finishes and fittings, and above all, in terms of its unblocked sea views, notes Han.
The two units at Seascape that were sold are 2,852 sq ft, four-bedroom flats sitting on the sixth and seventh floors respectively. They were sold at S$6 million each, or S$2,103 per square foot. “It’s the highest per square foot price achieved since 2019,” says Han.
“Putting side age and design, current prices of the condos at Sentosa Cove are deemed to be a bargain,” says List Sotheby’s Cha. One could find a flat size of 1,200 to 1,300 sq ft, priced at around S$2 million at Sentosa Cove. The equivalent at the latest launch, The Reef at King’s Dock at Keppel Bay on the mainland – just across the sea from Sentosa Cove – is priced over S$3 million, he notes.
“The exclusive, tranquil and resort-like lifestyle at Sentosa Cove could not be replicated anywhere else in Singapore,” adds Cha. “It is attractive to retirees and families with grown-up children who do not need to be near schools.”
Want more stories like this? Sign up here. Follow STYLE on Facebook, Instagram, YouTube and Twitter.
This article originally appeared on EdgeProp.
ncG1vNJzZmivp6x7tK%2FMqWWcp51kuqKzwLOgp52jZMC1xcueZqWdmajCs7GOmqmtoZOhsnB%2FkGttam9pZMSpxYyaqZ5lkqrGpr7SZp2lp5Ogtq%2BzjKygp5%2BRpbyzsdJmo66wlWK2tLjAp5tmqpWovLPA