Latest data suggests that some action has started to happen in the luxury property market in Singapore, especially at Sentosa Cove. Many reports have come in recent times pointing towards how properties across Singapore are incurring losses, but it seems that the worst is over, at least at the luxury waterfront. Here, sales are improving quite noticeably.
As of now, seven bungalows in posh location caveats have been lodged. The total sum amounts to $102.7 million. Compared to last year’s data, this is a great improvement. By this time last year, caveats had been lodged for only four bungalows, totalling $64.5 million. One thing is becoming clear, super-wealthy buyers are focusing on value buys, which might not be available on the mainland.
Just last month, a 6-room bungalow in Paradise Island, a 29-condo development, at Sentosa Cove was auctioned. The starting price was listed at $13 million. The auction created a lot of interest, but, more importantly, found no takers. According to a manager of Colliers International, who put this property on public auction, selling properties located at Sentosa Cove through public auctions pose a unique challenge. Most potential buyers are individuals who have a high net worth and do not like to disclose their identities. It is possible that because of this reason, the 6-room bungalow auctioned last week found zero takers.
The manager stated that market conditions, more than anything else, will decide if a property will find a buyer anytime soon. However, he also added that more landed properties at Sentosa Cove are likely to be sold this year because the prices have bottomed out.
In Singapore, foreigners cannot buy a property unless they are permanent residents. The only exception might be Sentosa Cove. However, even then out of the seven landed properties sold at Sentosa Cove through public auctions this year, six were purchased by Singaporeans.
The interest in Sentosa Cove properties started after mid-2015. This was the time when the prices started to soften. Both permanent resident and local buyers have shown interest in this posh seafront location.
Experts believe that the gap between the expectations of buyers and sellers has become less, and this has led to renewed interest in properties at Sentosa Cove.
Answering to the question why locals have come forward in greater number to purchase landed properties at Sentosa Cove, Mr Tay, vice-president at CBRE Realty Associates, said that today, Sentosa Cove bungalows appear to offer better value than properties on the mainland. Because of this reason, locals are showing renewed interest in this location.
He further elaborated that since 2015, majority of transactions have been in the range of $10 million to $15 million. Properties within this range on the mainland might not offer the same attractive features which Sentosa Cove bungalows offer.
With that said, some really good projects are coming up on the mainland which will create a lot of interest. One such project is Martin Modern by Guocoland. The project is expected to be completed by early 2021 or 2020. Contact us for viewing of the showflat location or any enquiry now!