Ho Bee-IOI’s Sentosa Cove project sells 50% of units put up for sale on launch day

by Albert02

Ho Bee-IOI’s Sentosa Cove project sells 50% of units put up for sale on launch day

Ho Bee-IOI’s Sentosa Cove project sells 50% of units put up for sale on launch day. CAPE ROYALE, Sentosa Cove’s first large-scale launch in over a decade, is said to have sold roughly half of the 50 units* on its first day of bookings on Wednesday (Jul 6). Three-bedroom units were said to sell for a median of S$4 million, while four-bedroom apartments were said to sell for a median of S$5.5 million. The 302-unit Cape Royale, developed by IOI Properties and Ho Bee Land, has been rented out since it was completed in 2013, when the developers believed prices were low after two rounds of property cooling measures that year.

The developer told The Business Times that approximately 95 percent of Cape Royale’s units are currently rented and will be sold with tenancy when previews for the 99-year leasehold project began on June 28. According to Lee Sze Teck, senior director (research), Huttons Asia, three-bedroom units at Cape Royale ranging from 1,900 to 2,000 square feet were rented for SS$8,200 to S$11,200 in May 2022, while four-bedroom units ranging from 2,500 to 4,200 square feet were rented for S$12,800 to S$22,000 in May 2022. Prices for Cape Royale apartments for sale this week began at S$2,103 psf. More than 90% of buyers are Singaporeans or Permanent Residents, according to BT.

According to Nicholas Mak, ERA Realty’s head of research and consultancy, the most recent Sentosa developments launched before this week – Seascape and Residences at W – sold at median prices of S$2,680 psf and S$2,816 psf during their March 2010 launches. Mak noted that Sentosa condo prices have been recovering following the drop caused by cooling measures in 2018. The median price of condominiums in Sentosa Cove is expected to rise 7.5% year on year in 2021. This is lower than the 10.6 percent annual growth rate of Singapore’s overall residential market, but higher than the Core Central Region’s 3.8 percent increase.

According to him, Sentosa Cove condo prices increased 8.6 percent in the first five months of 2022 to S$1,688 per square foot, the highest psf price in the area since 2012. According to Mak, the median rental rate for Sentosa condos increased by 5.2 percent quarter on quarter and 15.1 percent year on year in Q1 of this year, reaching S$4.43 per square foot. Meanwhile, as the number of vacant units available for rent decreases, the number of condo rental contracts fell 11.2 percent quarter on quarter to 165 in Q1.

Ho Bee Land completed the remaining 16 units of its 91-unit leasehold condominium Turquoise at Sentosa Cove last year. The company offered promotional discounts ranging from S$500,000 to S$750,000 per unit for the project. A 3-bedroom unit was purchased for S$3.2 million (S$1,536 psf) under the offer, down from its initial S$3.71 million price. Meanwhile, a 4-room unit was sold for S$3.35 million (S$1,390 psf), down from its original S$4.1 million asking price. Ho Bee’s revenue for the second half ended December 31, 2021 increased due to turquoise sales. Sales of development properties, primarily from the Turquoise project, increased 75.7 percent year on year to S$80.6 million, up from S$0.7 million in the previous corresponding half-year.

Ho Bee reported a net profit of S$225 million for the half-year period ended December 31, 2021, an increase of 384.3 percent from S$46.5 million in the same period the previous year. The 200-unit The Berth by the Cove was built in 2006, the 249-unit The Coast in 2010, and the 151-unit Seascape at Sentosa Cove in 2011.

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