Sentosa Cove houses at same level as mass market condos

This article is more than 12 months old

Resale prices psf for high-end homes in exclusive location down nearly 20% from a year ago

Recent sale prices for bungalows in Sentosa Cove - one of the poshest addresses here - have fallen to levels similar to those of mass market condos on a per sq foot (psf) basis.

The decline, of nearly 20 per cent from a year earlier, reflects the slide in the broader luxury segment.

Eight Sentosa Cove bungalows were sold in the first six months of this year for an average $1,541 psf, said a report released by property consultancy CBRE on Monday (Aug 14). That was an 18.1 per cent fall from the average selling price of $1,881 psf in the second half of last year.

By comparison, popular mass market project Commonwealth Towers sold 47 units in June at a median selling price of $1,899 psf while Seaside Residences in Siglap moved 10 units at a median selling price of $1,731 psf.

CBRE said lower asking prices likely prompted a rise in sales in Sentosa Cove as only four were sold in the second half of last year and none in the first half.

Colliers International's head of research Tricia Song said Sentosa Cove properties have fallen 40 per cent from peak prices and are attractive to buyers.

Another segment which drew buyers was apartments in the core central region, including districts such as Orchard and Bukit Timah.

A total of 170 caveats were lodged for units sold in the region in the first half of this year, nearly 40 per cent more than the 123 caveats lodged in the second half of last year.

The average selling price of luxury apartments above $5 million was $2,446 psf, about 2 per cent higher than the $2,396 psf for the second half of last year.

However, it was 2.9 per cent lower than the average price of $2,519 recorded in the same period last year.

Mr Desmond Sim, CBRE's head of research for Singapore and South-east Asia, said the 2.9 per cent decline was due to skewing caused by some projects with strong sales.

In the first half of this year, the best-selling luxury project was Leedon Residence, which sold 44 units above the price of $5 million, translating to an average price of $1,993 psf.

However, in the first half of last year, the top-selling luxury project was Ardmore Three, which had 35 caveats lodged at an average price of $3,217 psf.

Dr Lee Nai Jia, head of research at Edmund Tie & Company, said the number of luxury homes sold this year will likely surpass that of last year, but prices will remain stable.

"Luxurious apartments are likely to benefit most from the luxury market upturn, as seen from the good take-up rates of new projects like Martin Modern..."

Sales of good class bungalows (GCBs), the most prestigious properties here, were stable for the first half of this year.

A total of 22 properties were sold for $463.91 million, compared with 23 sold in the second half of last year for $490.17 million.

Average GCB prices fell 6.9 per cent from the second half of last year to $1,242 psf, based on land area in the first half of this year.