China parties lead foreign buyers of Sentosa Cove villas
Singapore
BUYERS from China were the biggest group of foreigners who bought villas in Sentosa Cove last year, say market watchers.
And these buyers comprise a mix of profiles, including a group in their late 20s and 30s who hail from Fujian province - some of whom have bought high-end, prime district condo units here in the past few years.
Many of these buyers were not Singapore permanent residents at the time of acquiring the properties. This means they would have paid 20 per cent in additional buyer's stamp duty on top of the standard buyer's stamp duty of up to 4 per cent.
Some of these Fujianese have started to settle with their families in Singapore, and they have also invested in existing businesses here and set up their own enterprises in a range of fields including IT, fintech and food and beverage.
Older, ultra-high net worth individuals from China have also bought Sentosa bungalows.
Last year, the family of Chinese tycoon Zhou Haijiang picked up a two-and-a-half storey bungalow on Cove Drive facing the waterway and Tanjong Golf Course, The Business Times understands.
Mr Zhou is the chairman and chief executive officer of Hodo Group, a diversified organisation with businesses ranging from garments to real estate.
His family paid S$16.5 million or S$2,266 per square foot (psf) on land area of 7,281 square feet (sq ft) for the villa, which was sold by Oxley Holdings boss Ching Chiat Kwong. Steve Tay of List Sotheby's International Realty confirmed acting for the seller but declined to comment further.
Observers say that most Singaporeans with the wherewithal would prefer to buy a bungalow in a Good Class Bungalow (GCB) Area. That said, Sentosa Cove beckons with its unique waterfront lifestyle and more palatable absolute price quantums. Last year, a Singaporean bought a bungalow on Paradise Island for S$9.18 million or S$1,303 psf on land of 7,045 sq ft. It was a mortgagee sale.
The major drawback of residences on Sentosa Cove is that they are on sites with 99-year leasehold tenure, unlike the predominantly freehold/999-year leasehold tenure for GCBs, or even boutique bungalows elsewhere on the mainland.
Given that bungalows in Sentosa Cove were built on land parcels sold between 2003 and 2009, the balance lease tenures are around 82-88 years. That said, buyers from China would not have much issue as land tenures in their home market are even shorter, at 60-70 years.
According to Mr Tay, "some of the bungalow sellers are foreigners or permanent residents who have relocated from Singapore and are thus selling their house".
SRI founder Bruce Lye said that some villas are being put up for sale by the first owners, who built them more than a decade ago on land parcels that they bought from the precinct's master developer.
"Given the significant pick-up in buying interest from the lows in 2014-2016, it may be a good time for these owners to realise a gain and move onto something else."
READ MORE: Wave of regional buyers expected to land on Sentosa Cove
