Sentosa Cove condominiums will not improve unless a game-changer is introduced
Game changer
In the CCR area, however, non-landed housing in Bukit timah Road continues to thrive as it appeals to Singapore residents buying homes for own occupation.
Singapore citizens, PRs and foreigners pay ABSD at a rate of 0% or 5% when they buy their first house.
In November 2023, the Watten House private preview was held in Bukit Tiam Road. Sales were very strong for both developers UOL Group (U14 0%) and Singapore Land Group (U06 0%), with an average price per square foot of S$3,230.
The key to increasing sales of non landed homes in Sentosa Cove could be to make them more appealing to locals looking to buy for their own occupation.
Sentosa makes some delivery workers resentful. Sentosa’s transport links are not the best in Singapore.
It has a lot of connectivity to the mainland. It is connected by road, monorail and pedestrian boardwalk, as well as cable car to Singapore’s mainland.
Sentosa Cove could use an MRT Station to attract more residents, considering the preference of locals for homes near MRT Stations.
Sentosa, if feasibility studies are conducted, could house a leading primary school. Sentosa has a number of tranquil areas that could be ideal for a school. This is different to the mainland. Sentosa Cove properties could benefit from the location of a school that is popular.
Bukit Timah Road has a number of well-respected primary schools, and other educational institutions. This is why the area is popular with local homebuyers.
Yes, there are many locals who are single or have never had children. Some locals prefer to buy in areas popular with local families, especially those who have kids. They want a house that will be easy to sell and rent in the future.
Sentosa as a tourism destination will benefit from continued investment such as RWS’ expansion
Sentosa Cove’s performance could be affected by the island resort’s ability to attract tourists who are willing to spend a lot of money.
Both buyers and renters are increasingly spoilt of choice with the increasing number of private housing launches. Could Sentosa Cove condos continue to underperform other locations?
In fact, buyers may even be hesitant to purchase landed houses in Sentosa Cove. Despite high-profile transactions recently being made for bungalows within District 10, 69 Ocean Drive, the home of one of 10 foreigners arrested as part of the S$3billion money laundering investigation, was not sold at auction last Thursday. Only one bid of S$20,000,000, far below the S$27.1,000,000 price guide was received.
Sentosa Cove condos will need a major shift in their marketing strategy if they want to attract more Singaporean owners. Currently, many Singaporeans do not find the idea of living on an oceanfront in a marina community appealing.
Should Sentosa have a Primary School?
Sentosa island, which is located just off Singapore’s south coast, has become a popular tourist attraction. Resorts World Sentosa has a variety of attractions, including the Universal Studios Singapore Theme Park, Adventure Cove Waterpark and Sea Aquarium.
Sentosa offers a variety of hotels, restaurants and shops, as well as convention facilities and beaches.
Families looking to splurge can stay at Shangri-La Rasa Sentosa. Capella Singapore in Sentosa, which is a favorite with celebrities and was the venue for the 2018 summit meeting between Donald Trump then US President and Kim Jong Un then North Korean leader.
Would you like to live in a resort? Home prices in Sentosa Cove in Core Central Region and on Sentosa’s Eastern Coast may not appeal to many locals.
A unit of City Developments Ltd C09 0% has recently sold 65 homes within The Residences At W Singapore Sentosa Cove, with an average selling price of S$1,780/square foot (psf). The low-rise development located along Ocean Way is a 2011 completion and has 99 years of leasehold. There are still 81 more years to go.
Performance
Pricing of S$1,780 is below many suburban private homes. However, new condos for sale in Lentor can sell for S$2,100.
The Hill @ One North located at Slim Barracks Rise sold units at an average of S$2,595/sqft on its first booking day.
The average price per sq ft achieved in recent transactions at The Residences at W, is 36 percent lower than the S$2,793.00 psf that was achieved by 20 transactions around the launch of this project.
The initial launch can result in a significant mark-tomarket loss for buyers.
The Residences at W is not the most recent design. The development may also be in need of some repairs.
As the number of remaining years on a land lease declines, so does the value of a property that is leased.
On the basis of the table that compares leasehold values to freehold values and is used by the Singapore Land Authority in computing differential price, a land plot with 81 year of lease remaining is worth around 4.8% less than a land plot with 99 year of lease left.
However, if you compare the home price performance since Q2 2010, the first buyers of The Residences at W did not do as well as many others who purchased private residences at about the same period.
The Urban Redevelopment Authority has indexed the price of private non landed homes between Q2 2011 and Q1 2020.
The CCR area underperformed due to the fact that foreigners who were not permanent residents or investors and those with a higher ABD (Additional Buyer’s Stamp Duty) had a particularly difficult time in this region.
A foreigner not in the PR who purchases a house today will pay 60% ABSD. Singapore citizens are charged ABSD of up to 30% when they buy a home after their second.
