The luxury property market in Singapore is definitely looking bright, especially at the elite Sentosa Cove. Amid reports of million-dollar property losses building up and the apparent vacant units, it seems that sales at this exclusive site is picking up.
Up until now this year alone, seven prestigious bungalows at the coveted address has been booked for a total of $102.7 million, according to data taken from the CBRE. This shows quite a big increase when compared to last year’s amount, where only four bungalows estimated at a price of $64.5 million were sold. This was put forward for the period of twelve months.
According to analysts even though the people looking to buy these properties are rich, they still look for good deals that can’t be found along the mainland. Just last week, a bungalow with six bedrooms and a 29 unit percentage at the prestigious Sentosa Cove, famously known as Paradise Island – was put on auction through Colliers International. It is built on a 7,350 square foot plot of land and is claimed as being the only one of its kind being sold. Even though the auction at Sentosa Cove drew in a lot of people, there were no hands flying up when the $13 million starting bid was announced.
The Head of Transaction (Services) at the famous Colliers International – Mr. Lim Kien Kim stated that the main challenge for selling the properties located at Sentosa Cove during public auctions, attract buyers with a high (net-worth). And it can also be noted that most of the hopeful buyers like keeping their true identities under wraps.
He further went on to say that the prevalent market conditions would predict if the properties would be sold in the near future. However he assumes that sales would certainly rise as the prices have now found good leverage.
It is also evident that properties at Sentosa Cove are by far the only permanent landed premises that foreigners can invest in. But so far for this year alone six out of the seven land owners were all Singaporean.
Vice President at Realty Associates (Resale) – Mr. Steve Tay conveyed that as of mid-2015, around the time prices at Sentosa Cove began decreasing, permanent residents both local and foreign seemed to show a huge interest with the location. According to him, the main reason this change occurred was because the gap narrowed between both the buyer’s and seller’s targets.
Apparently a lot more than half the deals achieved this year were bought by locals, who plan on living in these homes, while having plans of holding (mid-to long-term) investment ideas too. This could be due to Singaporean’s having a greater interest in Sentosa Cove in comparison to properties along the mainland.
A bungalow at Lakeshore View located at Sentosa Cove sold recently was the most expensive one. It was built on a site of 11,270 square feet that was purchased by the Japanese founder Takao Yasuda of Don Quijote.
Despite the research done by Knight Frank, 16 of the 30 sales during the span of 12 months had shown a loss. At Sentosa Cove however sales have only increased for their condominiums.
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