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The upscale waterfront residential enclave of Sentosa Cove in Singapore can probably lay claim to having the highest concentration of Singapore’s rich, famous and flamboyant. There’s clearly a buzz as construction continues at many of these homes, which are in various stages of completion. While many are villas with contemporary tropical designs, there are some that stand out — one looks like a ship, another resembles a home from the Flintstones cartoon, and there are even mini versions of Resorts World at Sentosa and Raffles Hotel.
Transactions for the first five months of the year, however, have shrunk to a fraction of what they were over the same period last year. Only half a dozen bungalows changed hands for a total of S$127.288 million, based on caveats lodged with URA as at June 8. By contrast, the first five months of 2010 saw 31 bungalows sold for close to S$520 million.
“It’s seriously quiet right now,” admits Kris Ho, managing director of Newsman Connections, which specialises in bungalow sales at Sentosa Cove. “A lot of the regional buyers from Hong Kong and mainland China are now looking at the UK and the US for investment opportunities because of the slew of government measures in their home markets as well as in Singapore. The government measures in January have also completely sidelined the local speculative investors.”
Last year’s home sales were helped by new launches such as YTL Singapore’s 13-villa project Kasara The Lake and continued sales at the 18-waterfront-villa project, Sandy Island. “New launches tend to create excitement,” says Ho. “Last year, there was also a lot of interest among Singaporeans and foreigners in anticipation of the opening of the at Sentosa integrated resort.”
Many who entered the market last year were also speculative investors, concede property agents. Some of them snapped up multiple properties and have put them on the market this year. With the government measures that introduced a hefty seller’s stamp duty for those who sell within the first two years of purchase, these speculators have withdrawn from the market, leaving only end users and long-term investors. As such, transaction volume has seen a dramatic drop.
The most recent transaction is likely to be the sale of a bungalow at Cove Way that was put up for auction sale by Colliers International on May 18. The 2½-storey house has a swimming pool and Jacuzzi overlooking the waterway, a central floating staircase, six bedrooms with en-suite bathrooms, as well as a roof garden at the attic level. The house, which is close to completion, has an estimated built-up area of 10,400 sq ft, and sits on a 99-year leasehold site of 8,943 sq ft.
There was a bid of S$15 million for the bungalow during the auction, but it fell short of the seller’s reserve price, and the property was withdrawn. The bidder later upped the offer to “S$16 million to S$17 million” and the deal was concluded, says a source. The average price worked out to S$1,789 to S$1,900 psf based on the land area of 8,943 sq ft. The seller is said to be a mainland Chinese businessman, while the buyer is a Singaporean.
The deal is described as “value-for-money”, and many Singaporean buyers are still viewing homes in the area with hopes of netting just such a buy. “There is selective interest in Sentosa Cove,” says Grace Ng, deputy managing director and auctioneer at Colliers International. “The properties here appeal to those who enjoy the waterfront lifestyle and also those who want to rub shoulders with the who’s who from Singapore and around the world.”
Average prices at a record high
While transaction volume may have shrunk, asking prices have continued to escalate. Based on caveats lodged with URA, the average transaction price of bungalows at Sentosa Cove so far this year is S$2,365 psf, compared with S$1,858 psf in the first five months of 2010, and S$1,921 psf for the full year. Hence, prices are up 27% y-o-y. Last year, the average price of bungalows at the cove was also 27% higher than in 2009 (S$1,515 psf).
There haven’t been any new launches of bungalow developments at Sentosa Cove this year. In the secondary market, there are 30 bungalows up for sale around the cove, says Jeffrey Sim, DTZ’s senior vice-president of the resale division.
However, only about 13 of these bungalow owners can be called “motivated sellers”, adds Newsman’s Ho. She is currently marketing seven bungalows at the cove. “Many of the sellers today are prepared to pull their property off the market if they don’t get the price they want,” adds Ho. “Some have even rented out their bungalows at rates of S$25,000 to S$28,000 a month, or are using them as weekend homes.”
Along Cove Drive, a bungalow with a land area of 8,245 sq ft was sold in March for S$19 million, or S$2,300 psf. The double-storey house has what looks like a putting green on the roof, with views of the sea. The buyer is said to be a Singaporean and the deal is said to have been brokered by Ho.
“At Sentosa Cove, one can still purchase a new bungalow with views of either the golf course or the waterways at a budget of S$15 million to S$20 million,” says DTZ’s Sim.
Along Cove Drive is another bungalow with full sea views. The plot is large, at 16,000 sq ft, and has a wide frontage. The double-storey house has six large bedrooms with en-suite bathrooms including the master bedroom suite, and a study. The house also features a large swimming pool and gazebo. Last year, it was put on the market with a price tag of S$45 million. This year, the house is back on the market and the asking price has been revised upward to S$53 million, or S$3,300 psf. Ho is the appointed marketing agent for the property. “There are only 47 bungalows in Sentosa Cove that can boast of full seafront views,” she says. “And this is also one of the few large plots that are equivalent to the size of a Good Class Bungalow, hence it commands a pricing premium.”
Given the size of its price tag, it is one of those bungalows that gets agents drooling.“If the deal gets done, it would be the highest bungalow transaction at the cove,” says a marketing agent.
Some 45% of the owners of landed homes at Sentosa Cove are foreigners, according to URA Realis data. While Sentosa Cove is the only place in Singapore where foreigners can own landed homes, they are still restricted to buying only one property for their own residence, and their purchase is subject to approval by the Singapore Land Authority’s Land Dealings (Approval) Unit. Singaporeans, on the other hand, can purchase more than one. Of the 2,140 homes at Sentosa Cove, which are all of 99-year leasehold tenure, the majority are condominiums, with another 30 units of terraced houses and 20 cluster homes. Hence, only 350 of the homes there are bungalows.
As such, quite a few Singaporeans who are collectors of Good Class Bungalows in the prime districts have also zoomed in on bungalows at the cove. “Sentosa Cove bungalows are viewed as trophy homes and they don’t mind banking on something that can see capital gains in the future due to scarcity,” says Newsman’s Ho. “Many of these buyers are very optimistic about Sentosa Cove, especially since the opening of Resorts World at Sentosa.”
On the market
On Treasure Island are 19 luxury villas designed by renowned Singaporean architect Timothy Seow while he was at CPG Consultants. At least three bungalows there are on the market, and they are said to be owned by a Singaporean described as one of the biggest property punters in town. DTZ’s Sim is marketing all three properties.
One is the bungalow at No 4 Treasure Island with a land area of 9,268 sq ft and built-up of around 9,000 sq ft. It is double-storey house with a living room, dining room, two powder rooms and a wet and dry kitchen on the first level. On the second level is the master bedroom and five common bedrooms with en-suite bathrooms. The asking price is S$22 million (S$2,374 psf).
Next door is No 6, also a newly completed bungalow, with a built-up area of 9,000 sq ft and land area of 8,650 sq ft. The asking price is also S$22 million (S$2,543 psf). The house has a basement level with an audio-visual (AV) room and entertainment area, as well as a storeroom and a maid’s room. The first level has a living room with a double-volume ceiling, a lap pool and an outdoor deck overlooking the waterway. There’s also a guest bedroom with en-suite bathroom and a powder room. The second level contains a family room, the master bedroom suite, and three other bedrooms with en-suite bathrooms, one of which comes with a connecting study. On the third level is the roof terrace and a Jacuzzi.
The largest of the three is No 14, with a land area of 11,285 sq ft and built-up of about 11,000 sq ft. On the first level is a spacious living room and dining room, with an open kitchen and outdoor terrace. There’s also a lap pool overlooking the waterway. The basement level contains a family room and an AV room, while the second level has another family room, the master bedroom suite, two bedrooms with en suite bathrooms and another room that can be used as a home office. The asking price of the house is S$28 million (S$2,481 psf).
Meanwhile, there are 21 waterfront villas developed by Ho Bee Group on Coral Island. The bungalow at No 23 is on the market with a price tag of S$24 million (S$2,526 psf). The Singaporean owner had bought it a year ago, and spent S$750,000 renovating it, as well as adding water features and landscaped gardens. This house is unique as it comes with an outhouse in the front that can be used either as a guest house or the chauffeur’s living quarters. There’s enough space to park six cars in the compound of the villa, which has a land area of 9,500 sq ft. The built-up area of the house is about 10,800 sq ft.
On the first level of the house is the living room and dining room with a renovated kitchen. There’s also a swimming pool and water features overlooking the waterway. The living and dining rooms enjoy direct views of the waterway. The junior master bedroom on the attic level opens out to a spacious roof garden. The master bedroom, which also comes with an outdoor deck and landscaped terrace, and a number of other bedrooms are on the second level. “With the way the water is flowing towards the house, the fengshui is very good,” notes DTZ’s Sim, who is marketing the property. “The house also has good cross ventilation,” he adds.
A bungalow that overlooks the golf course and a lake at 82 Cove Grove is also on the market at an asking price of S$19.8 million, or S$2,444 psf. The property has a land area of 8,100 sq ft and a built-up of 9,000 sq ft. The house features a floating staircase and has six bedrooms, including the master bedroom, all of which come with en suite bathrooms. The architect who designed the house is Robert Greg Shand, who designed 21 bungalows for private owners on the island. Ho is marketing the property.
Cecilia Chow is the editor of City & Country, The Edge Singapore
