Ho Bee poised for growth as Sentosa’s recovery unfolds
(This news article was published in 2016 and is a good recollection of how Sentosa has grown till today.)
Ho Bee poised for growth as Sentosa’s recovery unfolds. It could profit up to $800 million from unsold units. According to RHB Research, Ho Bee land is poised for growth as Sentosa home prices recover.
Analyst Goh Han Peng observed that, while prices of residential units in Sentosa Cove had fallen sharply in recent years, transactions are now picking up as buyers increased their purchases amid a sense that prices had bottomed out.
The Oceanfront, for example, sold two condominium units in the $2000 psf range in April, a price not seen since October 2012, when a unit sold for $2,190 psf.
Other projects in the enclave, ranging from Seascape to The Coast and Turquoise, had also seen an increase in transactions, with completed deals ranging from $1400 to $1600 psf.
“We believe the play on Sentosa properties is still ultimately about scarcity, with a limited stock of around 2000 units.” “The biggest player there is Ho Bee Land, which has secured eight sites on the island since 2003 and has since sold the majority of the projects there, raking in $800 million in profits that have been recycled to acquire investment properties in Singapore and London,” according to the report.
“Its remaining Sentosa exposure is substantial: we estimate its portfolio of completed units in Turquoise, Seascape, and Cape Royale to be worth $700-800 million.”
“The majority of these units are currently rented out as management awaits a turn in the residential cycle,” according to the report.
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