Wave of regional buyers expected to land on Sentosa Cove
Singapore
THE sales momentum for bungalows in the waterfront housing district of Sentosa Cove is expected to strengthen further this year as travel restrictions are eased and potential buyers from the region allowed entry into Singapore to view the villas.
Agents are upbeat on the outlook for this segment, on the back of a strong pick-up in the volume of transactions in the second half of 2020 - after the "circuit breaker" partial lockdown ended and property viewings resumed from June 19. Some buyers - including China citizens already in Singapore and eyeing landed homes - took the opportunity to buy in Sentosa Cove.
While the foreign buyers of Sentosa Cove villas last year were mainly from China, List Sotheby's International Realty (List SIR) senior associate vice-president Steve Tay expects "a surge in demand from buyers from Southeast Asia and India once borders are able to open progressively and safely.".
SRI co-founder Bruce Lye too told BT that the firm's agents have a few groups of potential buyers - not just from China, but also Malaysia and Indonesia -who are waiting to come to Singapore when travel curbs are relaxed. "Some are seeking permission to enter Singapore for medical treatment; while here, the plan is for them to schedule some viewings in Sentosa as well," he added.
"These people know how Singapore has been handling the pandemic; this will be a pull factor for many of them to pick up a property here," said Mr Lye.
List SIR's analysis of URA Realis caveats database showed that 13 Sentosa bungalows transacted for a total S$195.66 million in 2020, up from just four deals adding up to S$83.39 million in 2019.
On top of the caveats data, there were at least seven transactions last year for which buyers did not lodge caveats, based on industry estimates compiled by BT.
So far this year, no Sentosa bungalow transactions have been captured in URA Realis. However, at least half a dozen transactions alone could materialise this year through the exercise of options to purchase granted earlier, BT understands.
Some of these transactions are subject to approval from the Land Dealings (Approval) Unit or LDAU of the Singapore Land Authority.
Sentosa Cove is the only place in Singapore where a foreigner who is not a Singapore permanent resident (PR) may seek approval to buy a landed home for their own use.
The six transactions are in locales such as Ocean Drive, Cove Drive and Pearl Island; two of these deals each comprises a pair of adjacent bungalows with sea views.
One pair, along Ocean Drive, is being sold by Shincee Leonardi, the wife of Stephen Riady, the executive chairman of Singapore-listed OUE. The price is understood to be in the mid-S$40 million range. The family used to live in the Ocean Drive residence before relocating to the Nassim Road Good Class Bungalow (GCB) Area, BT understands.
The second pair of side-by-side bungalows - along Cove Drive, near the Seven Palms condo - is being sold for S$39 million, according to the grapevine. The owner is understood to be the family of high-end furniture retailer Da Vinci Collection chairman Tony Phua; the family used to live in the property before moving to their GCB near the Botanic Gardens.
Agents note the attraction of owning a pair of adjacent bungalows, resulting in a larger land area, in Sentosa Cove, especially to a foreign buyer.
Mr Tay has seen an increase in enquiries from overseas clients for "mega plots" above 15,000 sq ft fronting the sea. "This is not surprising as the land plots above 15,000 sq ft are equivalent to a GCB size - and foreigners and PRs are allowed to purchase them on Cove."
One generally has to be a Singapore citizen to be allowed to acquire a landed property in any of the 39 gazetted GCB Areas on mainland Singapore. Such bungalows are the most prestigious form of landed housing in the city state, with strict planning conditions stipulated to preserve their exclusivity and low-rise character.
Foreigners eyeing big landed residences in Sentosa Cove should note that the LDAU generally does not allow them to buy a landed property in the precinct with a site area exceeding 1,800 square metres (or 19,375 sq ft).
Whether one is a Singaporean or foreigner, the unique, tranquil ambience of living in a waterfront housing precinct is a key draw to wanting to live in Sentosa Cove.
Another factor that should appeal to buyers these days, says Mr Tay, is that bungalow prices in Sentosa Cove are generally about 30-40 per cent lower than in their heyday from 2010 to 2012.
Foreign investors have traditionally favoured Singapore given its safe haven status with all-round stability, open economy, well developed infrastructure and established education system.
More recently, says List SIR research director Han Huan Mei, foreign investors have also found assurance in the way the government responded to the Covid-19 pandemic in terms of its support and fiscal policies to businesses, job security and residents' health and safety.
She also points to a potential new source of demand for homes in Sentosa Cove when tech group Dyson opens its global headquarters at St James Power Station, likely to be after 2021, next to Sentosa Gateway and VivoCity mall. "For the expat professionals at the Dyson HQ, Sentosa Cove would be an ideal place to rent, or even buy, a home."
"Looking to 2021, we expect the current healthy sales momentum to continue, especially when travel restrictions are relaxed. A steady sales volume could in turn lead to a modest upside in prices through the year," Ms Han said.
READ MORE: China parties lead foreign buyers of Sentosa Cove villas
