Sentosa Cove property market stirs
(This news article was published in 2017 and is a good recollection of developing news of how Sentosa has progressed since then.)
Sentosa Cove property market stirs. AFTER a three-year slump, the Sentosa Cove property market is showing signs of life. Three condominium units in the waterfront enclave have been listed for sale in property auctions this month. Only one is a mortgagee (or bank) sale, and the other two are owner sales.
This month’s sole mortgagee sale is a 1,227 square foot, two-bedroom unit at The Residences at W Singapore Sentosa Cove. The apartment is on the fifth floor of the six-story, 228-unit luxury condo, which was completed in 2012. The Residences at W are part of City Developments Ltd’s Quayside Collection, which also includes the Quayside Isle F&B and retail podium and the W Singapore Hotel.
In December 2014, CDL joined forces with US investment firm Blackstone Group and Malaysia’s CIMB Bank to securitize the assets in the Quayside Collection for S$1.5 billion (RM4.6 billion). CDL and its partners assumed in their cash flow projections that the residential units at The Residences at W would be sold at no less than S$2,400 psf at the end of the PPS’s five-year term.
Colliers International auctioned off the 1,227-square-foot fifth-floor unit at The Residences at W on May 25. One°15 Marina is said to be visible from the unit. It was listed for S$2.53 million (S$2,062 psf), which represents a S$1 million discount from the original purchase price seven years ago. The previous owner paid S$3.55 million (S$2,891 psf) for the unit in 2010.
According to caveats filed with URA Realis, the unit was one of 25 sold by the developer between April 2010 and October 2014 at an average price of S$2,736 psf.
Oceanfront tops transactions at Sentosa Cove
CDL is also the developer of The Oceanfront, one of only two landmark high-rise condo developments in Sentosa Cove. The 264-unit project, which opened in 2010, has views of the sea and the marina.
On May 24, Edmund Tie & Co’s property auction featured a 1,894 square foot, three-bedroom unit on the eighth floor of one of The Oceanfront’s 15-story towers. The starting price was S$2.65 million (S$1,399 per square foot). The property was withdrawn because there were no bids. According to a caveat filed in January 2010, the opening price is less than the owner’s purchase price of S$3.3 million (S$1,742 psf).
The three-bedroom unit is currently leased for S$5,600 per month on a two-year contract that expires in June 2018. The gross rental yield equals 2.53 percent. According to Joy Tan, head of auction at Edmund Tie & Co, who is marketing the property, the unit attracted a lot of interest given its indicative price of S$1,399 psf.
The most recent transaction at The Oceanfront was for a three-bedroom unit, but it was slightly smaller at 1,711 sq ft and in a different tower. The unit sold for S$2.85 million (S$1,665 per square foot). In May 2007, the previous owner paid S$2.77 million (S$1,618 psf) for the unit. When the project first opened in July 2006, the first owner paid S$2.1 million (S$1,228 psf) for the unit.
So far this year, The OceanFront has seen at least a half-dozen transactions. Many of those who sold were second or third time buyers. In April, for example, a 1,711 sq ft three-bedroom unit in the adjacent tower sold for S$2.6 million (S$1,519 psf). In a sub-sale in December 2006, the previous owner paid close to S$2.4 million (S$1,400 psf) for the unit. He was the second buyer; the first had purchased the unit in August 2006 for S$2.26 million (S$1,321 psf) before flipping it four months earlier.
The same scenario played out in another block of The Oceanfront at a 2,067 sq ft, four-bedroom unit. In April of this year, the unit sold for S$3.6 million (S$1,742 psf). It was purchased a decade ago for S$3.93 million (S$1,900 psf). Prior to that, the unit was purchased from the developer in August 2006 for S$3.13 million (S$1,516 psf).
The Berth by the Cove turns 10
The Berth by the Cove by Ho Bee Land, a first mover in the waterfront enclave, was the first condo development to open in Sentosa Cove. The 200-unit project began in late 2004 and was completed in 2007. As a result, it is now ten years old.
On May 31, ERA will hold an auction for a unit at The Berth by the Cove. The three-bedroom, 2,131-square-foot unit faces the sea. The unit is currently occupied, and the owner has set the asking price at S$2.55 million (S$1,197 psf). The owner bought the unit 12 years ago when it was first listed for S$1.6 million (S$758 psf). The Berth by the Cove’s average transacted price at the time was S$830 psf.
The most recent transaction at The Berth by the Cove was for a 1,658 square foot, three-bedroom unit on another block’s fourth floor. According to a caveat filed with URA Realis, it was sold for S$2.2 million (S$1,327 psf) in March 2017. In December 2004, the unit was purchased for S$1.44 million (S$871 psf).
Transaction volume almost doubles
Transactions in Sentosa Cove are increasing. There were 21 sales in the first five months of 2017, with six of them being bungalow deals. The most recent was the S$14.5 million sale of the Cove Grove home of Ezra Holdings founder and chairman Lee Kian Soo. The remaining 15 transactions involved condominium units.
This represents a 75% year-on-year increase in transactions over the first five months of 2016, when there were only 12 deals. Only two of the 12 transactions recorded by URA Realis were for landed properties — both were terraced houses on The Berthside and Ocean Drive. In the first five months of last year, no bungalows were sold.
Click the image to read the full details of report.
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