Sentosa Cove penthouse sold at $2.4m loss
Transaction is first auction sale of a Sentosa Cove property this year
A two-level penthouse at The Berth by the Cove was sold for $3.25million, or $1,105 per square feet (psf) - almost half its original value - at an auction on Wednesday.
Edmund Tie & Company received five bids for the sixth-storey property. The last owner had bought the unit for $5.64 million, or $1,919 psf, in 2011. This means a loss of about $2.4 million, or 42 per cent.
This transaction is the first auction sale of a Sentosa Cove property this year. It is a mortgagee sale, which means it is a sale put up by the lender, usually because the borrower has difficulty servicing the mortgage.
According to the real-estate consulting firm, this is the fourth Sentosa Cove property since last year to be sold for almost half of its initial purchase price.
In January this year, a unit in Sentosa Cove's Turquoise was sold for $3.59 million, 43 per cent lower than its last purchase price of $6.29million.
In March last year, an apartment in Marina Collection was sold for $3 million, or at a 42 per cent discount, while a Seascape unit was sold at $6.2 million in February last year - representing a loss of 51 per cent from its original value of $12.8million.
The firm's head of auction and sales, Ms Joy Tan, said: "Mortgagee sale units along this stretch of Sentosa Cove are hard to come by, given its healthy rental and resale transactions. The auctioned price of $1,105 psf is very reasonable."
The four-bedroom unit at The Berth by the Cove has a floor area of about 2,939 sq ft, and features unblocked views of the marina, as well as the landed enclaves of Paradise Island and Coral Island.
It comes with a double-volume ceiling in the living area, private lift access and a private spa pool which is en suite to the master bedroom. Located along Sentosa's coastline, this condominium is also one of the few developments on the island which offer residents 25 berths for their private yachts.
Ms Tan added: "Sentosa Cove properties are on the upward swing this past year, and we still see ready buyers looking to invest in good buys on the island. We expect another five units to be placed for auction for the rest of the year."
The next auction by Edmund Tie & Company will be on March 21. - THE STRAITS TIMES