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Sentosa Cove bungalow prices up 15.8% even as total sales value plunges 48.2% in 2023

Sentosa Cove bungalow prices up 15.8% even as total sales value plunges 48.2% in 2023

SINGAPORE – Sentosa Cove’s opulent beachfront residences near Affinity at Serangoon, ostentatious automobiles parked in driveways, and private yachts moored at the marina have long been recognized as emblems of floor plans and as Singapore’s counterpart to Dubai and Monaco, the playgrounds of the ultra-wealthy.

About 2,160 dwellings make up the 117-hectare artificial strip on Sentosa Island’s eastern edge near Affinity at Serangoon Showflat. These include over 350 bungalows, 36 terraced houses, and 10 opulent complexes with 1,766 apartments.

Research director at List Sotheby’s International Realty Han Huan Mei states, “The sea views and resort lifestyle offered by Sentosa Cove are unique to this luxury enclave, which cannot be replicated anywhere else in Singapore.”

After all, the only location in Singapore where foreigners can purchase houses is Sentosa Cove. As a result, this is also the area most affected by the government’s property cooling initiatives. In the most recent round, which went into effect on April 27, 2023, foreigners were subject to an extra buyer’s stamp duty (ABSD) of 60%, which was double the prior amount.

According to Steve Tay, the founder and director of Steve Tay Real Estate (STRE), which specializes in marketing opulent homes in Sentosa Cove and Good Class Bungalows (GCBs) on Singapore’s main island, “I have billionaire foreign clients who refuse to pay the 60% ABSD even though they can afford it.” “It is difficult to justify the transaction cost in addition to the property’s value.”

Nine (or fifty percent) of the eighteen bungalow buyers in Sentosa Cove in 2022 were Singaporeans. Based on URA data, of the remaining nine, five were foreigners (28%) and four were PRs. “The principal distinction lies in the quantity of overseas purchasers who demonstrated greater willingness to commit to a transaction at the 30% ABSD, prior to the increase to 60% in April 2023,” according to Han of List Sotheby’s.

As of December 31, 2023, the overall sales value of bungalows had dropped to just $175.05 million, a 48.2% year-over-year decrease. However, the average price per square foot (PSF) of all sold bungalows had increased by 15.8% from $1,940 in 2022 to $2,247 in 2023.

In terms of both absolute and psf pricing, the most costly bungalow that was sold in Sentosa Cove in 2023 was located on Coral Island.

As noted by List Sotheby’s Han, a few more transactions might have gone through without complaints. It is undeniable, nonetheless, that Sentosa Cove’s sales activity has significantly decreased in comparison to 2022.

Since early 2023, Han notes, “there has generally been a decline in the number of inquiries and viewings, both for the sale and rental of bungalows at Sentosa Cove.” “It was thought that Sentosa Cove’s prices and rentals had been exorbitant, and closing the difference in both proved difficult.”

The market was further depressed in August when 105 properties, including seven bungalows in Sentosa Cove, were confiscated as part of a money laundering sweep. Han continues, “We feel that Sentosa Cove bungalow prices need to be adjusted.” It might result in additional transactions.

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