Property sales in Sentosa Cove reached a new high in the first eight months of 2021. According to statistics from the Urban Redevelopment Authority (URA), there were 103 transactions on the private island as of August 16, consisting of 85 condos and 18 landed houses, up 84 percent over the 43 condominiums and 13 landed homes moved in the whole year of 2020.
This year’s sales were $610 million, increasing 72 percent over the previous year.
Given that prices on the island remain comparatively cheaper than those on the mainland, some experts think the high transaction volumes in Sentosa are a spillover from the increasing demand for luxury properties in the Rest of Central Region (RCR).
According to URA statistics, overall private property prices in Singapore increased 4.1 percent in H1 2021 and 7.1 percent in H2 2021.
The increase in property prices on the mainland, according to Nicholas Mak, Head of Research and Consultancy at ERA Realty, “makes the resale pricing in Sentosa Cove seem comparatively reasonable.”
He believes that this year’s strong transaction volume would result in a price rebound for Sentosa properties.
According to ST, he added, “Based on the general market trend, Sentosa Cove property still has some space to run.”
Sentosa Cove began as a residential zone in 2006, making it Singapore’s sole enclave where foreigners are permitted to own landed property, subject to permission.
There are 2,160 residences on the island, ranging from high-rise condos to luxury cottages with adjoining private boat docks.
High-profile businesspeople and celebrities have lived in Sentosa Cove’s ultra-posh seaside neighborhood.
Mathilda Koh, the creator of local cosmetics company Bioskin, bought a property at Seascape for $3 million, or $1,327 per sq ft, in 2020. She resides in a two-story house overlooking the Serapong golf course (psf). When compared to the $6.26 million paid by the seller in 2010, this is a significant decrease.
The resort island’s condominium prices have fallen by approximately 40% from their peak in 2010, while landed house prices began to tumble in 2016.
Sentosa Cove prices, on the other hand, have been steadily rising since 2020, with Singaporeans accounting for half of all purchasers this year.
In May, the wife of DBS Bank CEO Piyush Gupta purchased a three-bedroom apartment for $3.45 million, or $1,705 per square foot, up from the development’s average per square foot price of $1,500.
Last month, a landed house with 8,384 square feet sold for $20 million, or $2,385 per square foot. This is more than the average psf price for landed houses this year, which was $1,841.
According to ST, condominium prices have risen to about $1,500 psf to $1,600 psf, up from an average of $1,484 psf last year.
District 4 and the Central Region have a median transaction price of about $1,800 per square foot.
According to a Sunday Times examination of URA caveat data, more over half of the 23 apartments sold at The Oceanfront in Sentosa Cove from January to August this year lost money, according to ST.
When units in developments like Seascape and Turquoise were sold after the cooling measures were implemented, there were additional losses.
Nonetheless, since 2020, real estate brokers have been getting increasing sale and rental enquiries.
The COVID-19 epidemic, they said, was a major factor in Singaporeans’ increasing interest in Sentosa Cove houses.
“After languishing in the property market for a few years owing to the introduction of ABSD (Additional Buyers Stamp Duty) for foreigners, Sentosa is now getting its day in the sun,” said Nicole Teo, Senior Associate Group Director at OrangeTee & Tie.
“Inquiries and viewings for Sentosa homes have increased significantly…
The experience of lockdowns and the possibility of future limited movements, along with the rise of the work-from-home trend, are all working in Sentosa Cove’s favor, he added, as cited by ST.
“Suddenly, inconvenience is no longer an issue since individuals no longer have to go to and from work every day. Indeed, living on a private island away from the crowded main island is now a safer and more appealing option.”
Despite the increasing demand, some Sentosa Cove residents choose to retain their houses since they produce excellent rental returns, according to PropNex Associate District Director Alex Low.
“In Sentosa, no new developments are debuting. There is a limited amount of stock available. Unlike in the past, when there were many empty apartments, we now have a new renter even before the contract expires,” he told ST.
