Revival in sales of Sentosa Cove bungalows
By Cecilia Chow
/ The Edge Property |
A bungalow at Sentosa Cove changed hands for $16.5 million ($1,871 psf), according to a caveat lodged on July 26. It marked the first transaction of a luxury bungalow at Sentosa Cove this year.
The house, located on Cove Way, has views of the waterway and is adjacent to the bridge leading to Sandy Island. According to property agents, the property, which was completed in 2011, features Las Vegas-style interiors and was developed by a Singaporean couple who have been using it as their weekend home. The house sits on an 8,816 sq ft site. The buyer is reported to be Pang Shengdong, vice-chairman of Shanghai 2345 Network Holding Group, a Shenzhen-listed IT company.
The last bungalow that changed hands on Cove Way was in October 2013. The house, two doors away from the one that was sold recently, fetched $17.5 million ($1,716 psf). The property, also completed in 2011, sits on a slightly bigger site of 10,194 sq ft.
The bungalow on Cove Way that was recently sold for $16.5 million ($1,871 psf)
“The latest transaction should give a much-needed boost to sentiment among bungalow owners at Sentosa Cove,” says Bruce Lye, managing partner of SRI.
Further south, on Cove Drive, a few more bungalows have been put on the market. “What’s interesting is that this time around, the sellers are Singaporeans,” says Joy Tan, head of auction at Edmund Tie & Co (ET&Co). “The buyers today are also Singaporeans, as they feel prices are now at an attractive level.”
On July 27, ET&Co had put up for auction two adjacent bungalows on Cove Drive for sale on behalf of a Singaporean owner. The two houses are identical 2½-storey detached houses with a basement and home lift. One of the houses sits on a 6,706 sq ft site and the other, on a 6,926 sq ft plot. The opening prices for the houses were $19.5 million and $20 million respectively, before they were withdrawn.
This was the second time that the two houses on Cove Drive were put up for sale by auction. The first time was in June, also by ET&Co. The two houses are now available for sale by private treaty.
The two adjoining bungalows on Cove Drive that are now available for
sale by private treaty
It seems like things are looking up for Sentosa Cove. The co-founders of privately held property group Evia Real Estate — Vincent Ong and Leslie Lim — have scooped up the 10 remaining bungalows on Pearl Island developed by Ximeng Land. The average price of the 10 units reportedly ranges from $1,500 to $1,600 psf, and reflects a bulk discount. The bulk purchase is said to be subject to approval from Sentosa Development Corp, the parent company of Sentosa Cove Pte Ltd, the masterplan developer of the 117ha, 99-year leasehold waterfront enclave.
The bungalows on Pearl Island, where Evia Real Estate is said to have scooped up the 10 remaining unsold units
Ximeng Land, a subsidiary of Chinese real estate development group Ximeng Asset Holdings Co, purchased the Pearl Island site in December 2007 for $215.65 million, or $1,687.50 psf per plot ratio. In terms of price psf ppr, it was considered the highest amount paid by a developer for a 99-year leasehold bungalow plot at Sentosa Cove. That was at the peak of the last property boom.
Based on caveats lodged, the last two transactions on Pearl Island were at $17.1 million ($1,904 psf) and $19.5 million ($1,906 psf) for two bungalows sold in October 2013.
There are 19 bungalows on Pearl Island and they were completed in 2012. All the bungalows have different layouts, but they all contain at least five en suite bedrooms, a reflective pool and a lap pool. All the bungalows also have water views. The first two bungalows sold on Pearl Island fetched $2,080 and $2,200 psf in September and October 2010 respectively, according to caveats lodged then.
According to Vincent Ong, managing director of Evia Real Estate, prices at Sentosa Cove have bottomed. “While you may be able to pick up one or two bungalows at a cheaper price, the opportunity for a bulk purchase of bungalows at Sentosa Cove is rare,” he says.
Ong sees the bulk purchase as an opportunity for a Singapore group to step in and offer luxury waterfront bungalows for lease. “Foreigners are not allowed to lease out their bungalows,” he says. “With prices having bottomed, we expect sentiment at Sentosa Cove to improve and transactions to pick up, just as we have seen it happen elsewhere in the prime districts of Singapore.”
This article appeared in The Edge Property pullout, Issue 741 (Aug 15, 2016) of The Edge Singapore.
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