Sentosa Cove Bungalow Sold For S$33.3 Million

Singapore, 23 August 2018 – The sale marks the highest deal for a Sentosa Cove bungalow since 2013.

A single-storey bungalow in Sentosa Cove has been sold for S$33.3 million. The price quantum is the highest deal for a Sentosa Cove bungalow since 2013, and the price per square foot (psf) is S$1,795. Representing the buyer was List Sotheby’s International Realty, Singapore.

This Sentosa Cove bungalow was able to fetch S$33.3 million due to several special and unique attributes. Firstly, it has a sizable land area of 18,555 sq ft which is a rare find among the bungalows in Sentosa Cove. Most of the bungalow plots are between 6,500 sq ft and 10,000 sq ft in size. Secondly, it is located along Cove Grove in the South Cove which has a superb view of the southern seas. Another plus point of this property is that it also has a view of the waterway where Pearl Island is located. Thirdly, the building onsite is a single-storey bungalow, which can be rebuilt into a two-and-a half-storey bungalow.

The buyer is a Singapore Permanent Resident (PR) who is a first-time home buyer. As such, the buyer will pay Additional Buyers’ Stamp Duty (ABSD) of 5 per cent, but will not need to pay the higher ABSD that was announced in July, as that affects Singaporeans and PRs who buy a second or any subsequent properties, as well as foreigners.

The sale of this Cove Grove bungalow shows that the buying decisions of high-net-worth individuals (HNWI) are guided less by if and what they can afford, but more by whether the product fits their needs, objectives and fancy. For an amount of S$33.3 million, a buyer could purchase a freehold Good Class Bungalow (GCB) on the main island. However, depending on locations, the amount would only fetch either a GCB on a smaller land plot or an older GCB which will need to be renovated or rebuilt. In either case, there will not be any sea view because all the GCB areas are located inland. Buyers who desire a waterfront lifestyle would be motivated to choose a bungalow at Sentosa Cove rather than a GCB.

Mr Leong Boon Hoe, Chief Operating Officer of List Sotheby’s International Realty (List SIR), Singapore, said: “Sentosa Cove remains an attractive location for high-end buyers who not only want the privacy and exclusivity that any good class bungalow can offer, but who also wish to live right next to the ocean for the spectacular sea view. It is also an ideal option for foreigners as they are not eligible to buy landed properties in Singapore except in Sentosa Cove.”

Ms Rowena Chan, the relationship manager from List SIR Singapore who represented the buyer, said: “While there could be some people who are indeed taking a wait-and-see approach when it comes to buying property, there is still a segment of serious buyers who are looking for homes for own stay and as long-term investments. These may include Singaporeans and PRs buying their first property as well as high net worth individuals, including foreigners, who make their decisions on purchasing international properties based on many factors other than price, such as geo-political stability, standard of living etc.”

Known for its strong international presence, List SIR’s key strength lies in the combination of established expertise in domestic real estate with a global network around the world.

To date, List SIR has 15 offices in the Asia Pacific region. This includes 10 offices in Japan’s major cities such as Tokyo and Yokohama, two offices in Hawaii and one office each in the Philippines (opened in 2016), Singapore (2017) and in Hong Kong (2017). A new office in Bangkok, Thailand will be opening in September 2018.

To affirm its position in the real estate market as the Asian gateway to major cities in Asia-Pacific and become one of the largest regional real estate brokerages, List SIR will also begin operations in Indonesia and Vietnam in 2019.

The Singapore office is the Southeast Asia regional headquarters for List SIR. It is currently looking at expanding and boosting the team by recruiting more real estate professionals, especially those who are familiar with the luxury market.

Annex – The Draw of Sentosa Cove

When the cooling measures were announced on 5 July 2018, industry players generally agreed that the luxury sector would be the most affected because of the rise of 5% in the additional buyer’s stamp duty (ABSD). Locals who are buying their second or third and subsequent property will now have to pay an ABSD of 12% and 15% respectively, Permanent Residents who are buying their second and subsequent property will have to pay an ABSD of 15%. Foreigners will have to pay 20% for all property purchases. Basically, it means a foreigner will have to fork out S$1 million in tax for every S$5 million of the property value.

Caveat data shows that only one GCB was sold at S$15.70 million after 26 July 2018, the cut-off date stipulated by IRAS for options signed on or before 5 July 2018 to be able to enjoy the “old” ABSD rates. For luxury apartments located within Core Central Region with price tags of S$5 million above, only seven caveats were lodged after the cut-off date.

Though there is some slowing down of the luxury property market, the sale of this Sentosa Cove bungalow demonstrates that luxury property buyers are still prepared to buy properties of their liking regardless of pricing considerations.

Between January and May, there were six bungalow transactions in Sentosa Cove, ranging from S$11.20 million to S$17.50 million, with land areas between 6,800 sq ft and 9,200 sq ft. There had been no bungalow transactions since May 2018 till this sale.

The last time that a Sentosa Cove bungalow fetched S$33.00 million was in September 2013 for No. 97 Cove Drive, which has a similar land size of 18,794 sq ft but faces the inner waterway and does not have a sea view.

For those looking for a respite away from the crowd, the notion of a sea fronting property with private yachts berthed alongside and going for long walks in an idyllic resort setting, or simply chilling while enjoying the picturesque view, are just some of the reasons to call Sentosa Cove home.

Source: OneMap, List SIR SG