Ho Bee-IOI’s Sentosa Cove project sells 50% of units put up for sale on launch day

CAPE Royale, the first large-scale launch at Sentosa Cove in over a decade, is said to have moved about 50 per cent of the 50 units* put up for sale on its first day of bookings on Wednesday (Jul 6). Its 3-bedroom units were understood to be sold at a median price of S$4 million, while 4-room apartments went for a median S$5.5 million.

Jointly developed by IOI Properties and Ho Bee Land, the 302-unit Cape Royale have been rented out since the project was completed in 2013, when the developers felt prices were weak following 2 rounds of property cooling measures that year. 

When previews for the 99-year leasehold project started on Jun 28, told The Business Times that about 95 per cent of Cape Royale’s units are currently rented out and will be sold with tenancy.

In May 2022, 3-bedroom units at Cape Royale of 1,900-2,000 sq ft in size were leased out at rentals ranging from SS$8,200 to S$11,200, while 4-bedroom units ranging from 2,500 sq ft to up to 4,200 sq ft in size were rented for S$12,800 to S$22,000, according to Lee Sze Teck, senior director (research), Huttons Asia.

Prices for the Cape Royale apartments on offer this week started at S$2,103 psf. BT understands that more than 90 per cent of the buyers are Singaporeans or Permanent Residents.

According to Nicholas Mak, ERA Realty’s head of research and consultancy, the latest Sentosa developments launched before this week - Seascape and Residences at W - were sold at median prices of S$2,680 psf and S$2,816 psf respectively during their launch in March 2010.

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Mak noted that Sentosa condo prices have been recovering after the dip that came with cooling measures in 2018. In 2021, the median price of condominiums at Sentosa Cove gained 7.5 per cent year on year. This is lower than the 10.6 per cent annual growth of Singapore’s overall residential market, but higher than the 3.8 per cent rise seen in the Core Central Region.

In the first 5 months of 2022, Sentosa Cove condo prices have increased 8.6 per cent to S$1,688 psf, the highest psf price in the area since 2012, he said.

Mak noted that in Q1 this year, median rental rates for Sentosa condos grew 5.2 per cent quarter on quarter and 15.1 year on year to S$4.43 psf. Meanwhile, the number of the condo rental contracts slipped 11.2 per cent quarter on quarter to 165 contracts in Q1, as the volume of vacant units available for rent is falling.

Last year, Ho Bee Land launched the remaining 16 units of its 91-unit leasehold condominium Turquoise at Sentosa Cove, which was completed in 2010. The company offered promotional discounts for the project ranging from S$500,000 to S$750,000 per unit. Under the offer, units sold include a 3-bedroom unit snapped up at S$3.2 million (S$1,536 psf), down from its initial S$3.71 million price. Meanwhile, a 4-room unit was sold at a discounted price of S$3.35 million (S$1,390 psf), from its earlier S$4.1 million price. 

Turquoise’s sales were a boost to Ho Bee’s revenue for its second half ended Dec 31, 2021. Revenue grew 75.7 per cent on year to S$190.4 million as sale of development properties - mainly from the Turquoise project - surged to S$80.6 million from S$0.7 million in the previous corresponding half-year.

Ho Bee posted a net profit of S$225 million for the half year period ended Dec 31, 2021, up 384.3 per cent from S$46.5 million in H2 2020. The mainboard-listed company also developed the 200-unit The Berth by the Cove completed in 2006; the 249-unit The Coast completed in 2010; and 151-unit Seascape at Sentosa Cove completed in 2011.

*Amendment note: An earlier version of this article stated that 50 per cent of the condominium’s 302 units had been sold, when in fact it was 50 per cent of the 50 units put up for sale.