The median price of condos at Sentosa Cove fell 15% this year to $1,792 psf, from $2,100 psf in 2023. Property prices on the resort island shifted following the relaunch of 58 of the 203 remaining units at The Residences At W Singapore Sentosa Cove, priced from $1,648 psf.
Before the relaunch in April, 25 units were sold at an average price of $2,736 psf, a 39.8% markdown. Since its relaunch, the 228-unit luxury condo has moved 81 units at an average price of $1,798 psf.
“The sale of The Residences At W was inevitably a pivotal point for the condo market in Sentosa Cove,” says Han Huan Mei, director of Research at List Sotheby’s International Realty. “This could have resulted in some sellers accepting lower offers for their units at other condos.”
Before this year’s dip, the median price of condos in Sentosa was trending upwards following the 2019 trough of $1,429 psf. The median price crossed $2,000 psf in 2022 and $2,100 psf in 2023, underpinned by the launch of the 302-unit Cape Royale and the sale of the remaining units at the 151-unit Seascape, which averaged around $2,100 psf.
Since its relaunch, The Residences at W has moved 81 units at an average price of $1,798 psf (Photo: Samuel Isaac Chua / EdgeProp Singapore)
Spike in luxury condo transactions
This year’s price revision also triggered a spike in condo transactions on the resort island. Within three months of the condo’s early April relaunch, Sentosa Cove saw 89 deals compared to just seven from January to March.
Since the start of the year, 126 condos have changed hands as of Dec 19. This is a 45% y-o-y increase from the 85 condo deals recorded in 2023.
While The Residences At W sold the most units this year (81), Cape Royale was the second-hottest selling development at Sentosa Cove, with 15 units sold at an average price of $2,283 psf.
The highest priced condo was also at Cape Royale when a 3,111 sq ft, three-bedroom apartment on the 17th floor was sold for $9.55 million ($3,069 psf) on Oct 9. The unit took this year’s top spot in absolute and psf price terms, setting a new overall psf price high for the luxury condo.
The sale of a 6,900 sq ft penthouse unit at Turquoise in October became the second most expensive condo transaction in Sentosa Cove. It was sold for $9 million ($1,304 psf).
Top 10 highest-priced condo transactions in Sentosa for 2024 (Credit: URA Realis data downloaded as at Dec 19; EdgeProp Singapore)
Sentosa landed market still sluggish
According to URA caveats, Sentosa Cove saw just two landed properties sold in 2024, compared to nine transactions recorded in the previous year.
This year, the first landed property to be sold in Sentosa Cove was a detached house on an 8,675 sq ft land plot along Ocean Drive. Based on caveats lodged, it fetched $16 million in February, reflecting a land rate of $1,844 psf.
The second biggest bungalow sale in Sentosa Cove was for a property on Cove Drive, with a 7,968 sq ft plot. It changed hands for $14.2 million ($1,777 psf) in September.
Cape Royale also witnessed the priciest condo to change hands in Sentosa (Photo: Samuel Isaac Chua / EdgeProp Singapore)
The decline in transaction volume could be partly due to a lack of foreign buyer interest. Last year, two landed properties were sold to foreign buyers. This year, there were none. The more significant price quantum, coupled with the hefty 60% additional buyer’s stamp duty (ABSD), which took effect from April 2023, was a significant deterrent for foreign buyers.
“Furthermore, it was revealed that some of the offenders caught in last year’s highly publicised money laundering case had owned bungalows in Sentosa,” says Han. “The shadow cast over the market could have caused some buyers to put their intention to buy on hold.”
Besides the two bungalows listed with URA, a third bungalow occupying a 19,551 sq ft plot at 69 Ocean Drive was reportedly sold for $22 million ($1,125 psf), says Han. A bank sale, the site is said to have been owned by one of the aforementioned money launderers. The property was previously purchased for $39.33 million ($2,012 psf) in March 2021.
Han expects the sluggish sales in Sentosa Cove’s bungalow market to continue next year unless sellers are prepared to accept lower offers for their homes. As for the condo segment, Han expects a similar performance to this year — assuming the new price floor remains as low.
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People Bouma (Translation) is a column editor based in Tokyo, China,
Released for Repository: April 17, 2015
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