Several rounds of property cooling measures by the Government since 2013 have caused properties in Sentosa Cove to crash. Analysts said that prices of luxury properties in Sentosa crashed 30 per cent since 2011.
The recovery of private properties in mainland Singapore since early 2017 did little to lift the fortunes of the luxury apartments in Sentosa. This trend is more severe than the slump in prime central London property prices after the Brexit, said Bloomberg.
Sentosa Cove is an outlier amidst the boom of luxury real estate markets across Asia Pacific, said the publication. High net worth individual’s preferences moved to other areas in mainland Singapore after the peak created by hot money from a commodities frenzy about seven years ago. What continues to be a billionaire haven was also hit by the Government’s latest round of property cooling measures. Stamp duties for example, have doubled to 20 per cent since 2011 for foreign buyers compared with just 3 per cent for Singaporeans.
Christine Li, Cushman & Wakefield’s head of research for Singapore, said: “Loss-making deals continue to plague the market. The recent cooling measures, coupled with the looming uncertainties arising from interest-rate hikes and trade tensions, will weigh on investor appetite in the near term.”
List Sotheby’s International Realty (List SIR) however, said that luxury homes in Sentosa Cove are just beginning to gain traction with high net worth individuals in recent months.
In late August, List Sotheby’s International Realty (List SIR) announced that a Singapore Permanent Resident has bought a single-storey bungalow in Sentosa Cove for $33.3 million. The selling price is the highest achieved for properties in Sentosa since 2013. ), the marketing agent for the property in Sentosa Cove, said that the sale worked out to $1,795 per sq ft, due to several unique attributes such as its sizeable area of 18,555 sq ft.
List SIR Singapore relationship manager Rowena Chan, who represented the buyer, noted that although there may be some people who are taking a wait-and-see approach when it comes to purchasing a property, there are still some serious buyers who are on the lookout for homes for own stay and as long-term investments.
“These may include Singaporeans and PRs buying their first property as well as high net worth individuals, including foreigners, who make their decisions on purchasing international properties based on many factors other than price, such as geo-political stability, standard of living etc,” she said.
Earlier this month, it was reported that disgraced church pastor, Kong Hee, has managed to sell his luxury Sentosa Cove penthouse at $7.2 million – incurring a loss of over $2 million. The luxury Sentosa Cove penthouse was relisted for $11.5 million in September last year – about 15 per cent higher than its 2015 listing at $10 million.
The 5,242 sq ft luxury penthouse was bought and co-owned by Kong Hee and Indonesian tycoon Wahju Hanafi in 2007 for $9.33 million, with each paying monthly installments of $17,000.
The luxury Sentosa Cove penthouse was sold to a Kenyan diplomat – one Neal Manilal Chandaria – whose family is in the process of moving in. The diplomat has viewed the property four times and said that “it was a good opportunity” to buy it at that competitive price. Chandaria, who currently lives in a landed property on Sentosa, said he enjoys the lifestyle on the island – “it’s very nice that it’s quiet and away from the city”.
Marketed as the “world’s most desired address”, luxury Sentosa Cove homes are a playground for the rich and famous. The exclusive residential enclave is a result of the Southern Islands development guide plan by Singapore’s Urban Redevelopment Authority (URA). Secluded from the more touristy recreation areas, the integrated residential-cum-marina resort development sits on the east side of Sentosa and houses a yacht club, a marina, a hotel, connected by a waterfront promenade lined with upscale restaurants, bars and shops.
Sentosa Cove is hugely popular with high-net-worth foreigners and locals alike for its resort lifestyle. Being zoned as a prime living area in Singapore, Sentosa Cove is also the only place where foreign ownership of restricted residential properties is allowed.
Some prominent names who own an address in Sentosa Cove includes celebrity hairstylist Addy Lee, Australian banker Stephen Fisher, Australian mining heiress Gina Rinehart, Spanish tycoon Ricardo Portabella Peralta and India telecom mogul Bhupendra Kumar Modi.
Sentosa Cove continues to be a delightful blend of upscale city living and the ever-so-attractive charisma of the tropical seaside. It’s a veritable showcase of the best of what Singapore is known for, including a host of first-rate infrastructures, posh hotels and resorts, and world-class leisure hubs.
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