SINGAPORE – Since January 2022, the rise in prices of resale condominium units in Sentosa Cove has surpassed price increases of resale condominiums in mainland Singapore.
The median per sq ft (psf) price of non-landed properties in Sentosa Cove surged 29.77 per cent from $1,555 in 2021, to $2,018 in 2022. Condo prices on the resort island have been rising since 2020, after tumbling by about 40 per cent in the previous 10 years from their peak in 2010.
In comparison, the median psf price for leasehold resale condominiums in the core central region (CCR) grew by a more modest 6.8 per cent year on year, while prices increased by 9.97 per cent for units in the city fringe, and by 12.2 per cent in the suburbs.
From January to April 2023, the median psf price for Sentosa Cove condos rose further to $2,147, data from the Urban Redevelopment Authority (URA) showed.
For the same period, median psf price was $1,973 for condos in the city centre, $1,713 for those in the city fringe, and $1,297 for those in the suburbs.
Mr Nicholas Mak, chief research officer of property portal Mogul.sg, attributed the rise in Sentosa Cove condo prices to the high prices of transacted units in Cape Royale, which was launched for sale in 2022 by developers IOI Properties and Ho Bee Land.
He noted that the transacted units in the 302-unit Cape Royale – which are considered resale units by URA – made up a significant proportion of the total condo transactions in Sentosa Cove.
Cape Royale’s developers put units up for sale only in 2022, nine years after its completion. They previously rented out the units after sale prices fell following two rounds of property cooling measures in 2013.
URA Realis data showed 154 condos in Sentosa Cove changed hands between January 2022 and April 2023, of which 69 – or 45 per cent – were units in Cape Royale.
“It means that the prices of the other condos, excluding Cape Royale, are still fairly subdued,” said Mr Mak.
The median psf price of Cape Royale units was $2,174 in 2022, and $2,223 for the first five months of 2023, whereas prices of other condos were way below $2,000 psf for the same period, he noted.
Properties on Sentosa are all on 99-year leasehold tenures. The waterfront enclave has 2,160 homes ranging from high-rise condominiums to luxury bungalows with adjoining private berths for boats, all aimed at the ultra-rich.
A Straits Times analysis of URA caveat information of condo resale transactions at Sentosa Cove from January 2022 to April 2023 found that more than 50 per cent of units were sold at a loss.
A caveat is lodged with the Singapore Land Authority, and it secures a property for the buyer. However, not all buyers lodge caveats.
Industry experts said the losses were mainly suffered by owners who had bought their homes during the property boom between 2010 and 2013.
Those who bought units at Turquoise and Seascape in 2007 and 2010, when prices were around $2,600 psf, experienced greater losses.
There were no profitable resale transactions at Seascape, and only one resale unit that racked up gains at Turquoise, based on URA caveats.
PropNex associate district director Alex Low, who specialises in Sentosa Cove properties, said such properties are still “relatively affordable”, even with prices rising. He cited how a penthouse unit at The Berth is selling for about $1,500 psf.
He added that anecdotally, he has seen more Singaporeans buying properties on Sentosa, and that this could be a spillover of rising demand for luxury homes located in the city fringe.
Provost’s Chair Professor Sing Tien Foo of the Department of Real Estate at the National University of Singapore said that despite the strong growth, the psf prices of Sentosa Cove projects are still lagging behind those of new comparable projects in the CCR and RCR (rest of central region) area.
“The high prices of condominiums on the main island may have pushed some potential buyers who don’t mind the exclusive nature of Sentosa Island to buy condominiums there,” said Prof Sing.
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