SINGAPORE – Units at the upmarket Cape Royale on Sentosa island will soon be up for sale – nine years after the luxury development was built.
Hopeful buyers for the 302 units in the leasehold condominium project were put on hold when it was completed in 2013 because developers IOI Properties and Ho Bee Land decided to rent out the apartments as sale prices had started falling following two rounds of property cooling measures that year.
But it seems that some of the homes are finally going to be made available.
A Ho Bee Land spokesman told The Straits Times on Wednesday (June 8) that it aims to sell the apartments “in the near future” but did not release further details.
The ST understands that the developer has called for marketing proposals from real estate agents. Several sale listings for Cape Royale on property portals have listed a guide price starting from $2,200 per square foot (psf).
A property agent who claimed to have been appointed by the developers told ST that as 90 per cent of the units are tenanted, the sale will be rolled out in batches with the launch tipped for the end of the month.
He added that salespeople have been given floor plans of the three- and four-bedroom units, and details of their sales commission.
The Cape Royale sales launch will come amid rising demand for luxury apartments while unsold inventory hit a multi-year low of 14,087 units as at March 31.
Urban Redevelopment Authority data showed that condominium sales in Sentosa more than tripled last year compared with 2020.
Ms Nicole Teo, senior associate group director at OrangeTee & Tie, noted: “I think it’s an opportune time for Ho Bee Land to launch Cape Royale now. There is strong demand for large-sized units on the market now but the stock for that on the mainland is very low.
“Cape Royale’s spacious unit sizes put it in good stead even as its age and location may draw the usual buyers away. But we have been seeing increased interest in Sentosa properties, not just from foreign buyers but also Singaporeans.
“Anecdotally, I’m seeing more and more local buyers viewing Sentosa properties, possibly because of the size premium they offer compared to the mainland, coupled with the unblocked sea views.
“Considering the fact that Seascape, which is next to Cape Royale, is slightly older but has been transacting at $2,000 to $2,100 psf, I think Cape Royale’s price is considered attractive.”
PropNex Realty chief executive Ismail Gafoor felt that an entry price of $2,200 psf is attractive for the high-end, ultra-posh waterfront enclave of Sentosa Cove given that the average price of recent launches like Piccadilly Grand and [email protected] on the mainland both crossed the $2,000 psf mark, and over 70 per cent of the units were sold on launch day for both projects.
Market watchers expect sales of property in Sentosa to keep climbing despite cooling measures.
Mr Nicholas Mak, ERA Realty’s head of research and consultancy, said: “The condo resale market at Sentosa Cove has cooled off slightly after the property curbs in December 2021, compared to the resale volume in 2021. However, it is gradually recovering from the shock of the property curbs.”
Condo prices in Sentosa tumbled almost 40 per cent to about $1,394 psf during the pandemic in 2020 compared with the peak around 2010.
But PropNex associate district director Alex Low, who specialises in Sentosa Cove homes, said he has came across many resale units that were sold above $2,000 psf in recent months.
“Those are usually sea-facing units with a good layout. Most buyers today don’t mind paying a premium for a good sea view. Many of them are buying for own stay or for their retirement,” added Mr Low.
Mr Mak of ERA Realty noted that the last condo project launched for sale in Sentosa was in 2010, when Seascape and Residences at W Singapore Sentosa Cove were released.
“The median price of resale condo units in Sentosa Cove in the first five months of this year is $1,688 psf,” he noted.
“Cape Royale is very likely to be launched at above this price level. Hence, the launch of Cape Royale could pull up the overall median prices of condos in Sentosa Cove.”
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