4 reasons why Sentosa Cove is making a comeback in 2021
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4 reasons why Sentosa Cove is making a comeback in 2021
Homeowners and investors are once again making a beeline for the sunny shores of Sentosa, cheers to the resort-like atmosphere and waterfront lifestyle it offers.
The pandemic has fuelled need for luxury backdrop in Sentosa Cove. (Photograph: PropertyGuru)
When we think "Sentosa Cove", we think of an ultra-wealthy enclave. It's the merely place where well-heeled foreigners who aren't Permanent Residents can buy landed property in Singapore. And if you're local, the prestige of having a Sentosa Cove address as a second "holiday" dwelling (after getting a Good Form Bungalow, of class) is a sign of having "made it".
Later a flow of disinterest and speculation that Sentosa Cove properties are past their prime number, the appetite for these luxury properties seems to accept returned. This time, it's likely that the pandemic is fuelling need.
The growing desire for Sentosa Cove bungalows and properties reached new heights in August. Till Aug 16, 2021, there were 103 transactions for 85 condos and 18 landed homes, up 84 per cent from the whole of last year.
So, the question remains: Why are Sentosa Cove properties making a improvement? Here are four reasons that could explain this trend.
Scan all Sentosa Cove properties for sale on PropertyGuru.
DESIRE FOR Comfy HOMES Abroad FROM THE Urban center Eye
Despite the presence of bazaar bungalows and other freehold backdrop available on the Singapore mainland, "investors are drawn to Sentosa considering of the resort-like and waterfront lifestyle information technology offers, which cannot be replicated elsewhere in Singapore," said List Sotheby's International Realty'south research director Han Huan Mei.
And that's just information technology, isn't information technology? After a yr-and-a-half of dealing with a raging pandemic, nosotros're just looking for an escape.
Information technology'southward a fact that having to work from home has inverse the mode we shop for backdrop. Less importance is placed on living in a prime or primal location considering we don't have to travel into the urban center middle as much as we used to. And with social restrictions in place and leisure travel curbed, we're spending more than time than ever at home.
When life gives you lot lemons, make lemonade. We've all transformed our homes into a space that is as comfortable every bit possible. For those with means, their juicing of the proverbial lemonade is to turn Sentosa's white pristine beaches into their lawn.
With the need for daily commute removed, living on Sentosa island no longer becomes besides much of an inconvenience.
Betwixt the choice of dealing with human congestion, noise pollution, and the rising number of COVID-nineteen infections on the mainland and waking upwardly to seafront views and fresh body of water air in a quiet, tranquil neighbourhood, the latter does seem to be the preferable and safer option.
What'due south curious is how PropertyGuru users seem to agree. The involvement in Sentosa Cove properties increased whenever cases of COVID-xix infections were picking up.
Here's the search book data for Sentosa Cove sales for landed and non-landed individual backdrop from Jan 2022 to Baronial 2021.
In 2019, the Sentosa Cove volume of searches on the PropertyGuru website stayed constant and at a relatively low volume. So, everything changed when COVID-19 reached our shores. On January 23, 2020, the commencement case of COVID-nineteen was recorded in Singapore. The searches for Sentosa Cove properties began picking upwards. Coincidence, perchance? Certain, just read on*.
Shortly afterwards, we went through the Circuit Breaker "lockdown" from Apr seven to Jun ane, 2020. Commensurately, we saw Sentosa Cove searches steadily increase. While measures were gradually eased from June through December, this was likely when we realised the pandemic wasn't going away any time soon.
Singapore was in Stage 3 from Dec 28, 2022 until May 7, 2021. But the number of cases spiked again due to the outbreak of the Delta variant from April through May 2021. Funny thing: Involvement in Sentosa Cove saw the virtually significant spring during this period, almost tripling to 21,172 searches in April and 21,701 searches in May.
After much collective grumbling on social media platforms and online forums, we went back to living with the Phase two Heightened Warning restrictions, which were in effect from May sixteen to Jun 13, 2021.
Searches in June 2022 (18,721) and July 2022 (fifteen,538) dropped slightly as the COVID-19 state of affairs improved. Restriction measures eased during the Phase 3 Heightened Alert from Jun fourteen to Jul 21.
Only earlier anyone could say, "Social gatherings in groups of eight," new COVID-nineteen clusters formed at the Jurong Fishery Port and several KTV lounges in the second half of July. And we went back into Phase 2 Heightened Alert from Jul 22, 2022 to Aug 10, 2021.
Guess what happened to the volume of searches in August 2021? It went up!
* From April to September 2020, nigh new cases were at foreign worker dormitories and construction sites, while imported cases formed the bulk of new cases from early Oct 2020. When at that place are few locally transmitted infections, it seems there isn't whatever impact on the interest in Sentosa Cove properties.
MID-SIZED SENTOSA COVE PROPERTIES ARE ATTRACTIVELY PRICED COMPARED TO THOSE IN THE SAME DISTRICT AND RCR
Office of owning a comfortable home is having plenty space. When you live in a concrete jungle like Singapore, infinite is luxury.
With the new normal of WFH, more HDB buyers and non-landed individual property buyers have gone for bigger properties to accommodate a home part. In our Singapore Property Market place Index Q3 2021 study, we noticed this to be truthful too.
Typically, transactions for private non-landed backdrop in Singapore costing Due south$two million or more than make upwardly 20 per cent or lower of total transactions. Only in Q2 2021, information technology was 27.5 per cent, with 20.3 per cent of all transactions occurring in the S$two million to S$4 one thousand thousand range. At this price bespeak, it's likely buyers are going for three- or 4-bedroom condo units over shoebox units.
In Sentosa Cove, this inclination for larger homes was similarly reflected.
From 2022 to 2021, the number of transactions for two,000 to two,500 sq ft units increased by vii.5 times.
In 2019, units that were 1,500 to 2,000 sq ft were the virtually popular. But by 2020, the trend was shifting towards larger units between 2,000 to ii,500 sq ft units. The natural train of thought would be, "If more people want 2,000 to 2,500 sq ft properties, the psf prices for these units will go up too." But no, that's where we were proven wrong.
From 2022 and 2021, the median psf for these units barely increased, from S$1,520 to S$one,549 psf. What's more, the median psf prices over 3 years remained stable (so stable that if we plotted a graph, you would enquire u.s. why we bothered showing yous a direct line).
Hither'south a visual representation of the transacted volume and median psf prices of the viii condos found in Sentosa Cove from 2022 to 2022 (so far).
That's all fine and peachy, but aren't Sentosa Cove homes more expensive than those on the mainland? Plot twist: Not quite.
COMPARING NON-LANDED Private Backdrop ON SENTOSA COVE AND THE MAINLAND
Let'south await at the top 3 condos with the most considerable increase in the number of transactions from 2022 to 2021. They are:
| Sentosa Cove Condos | No. of transactions in 2020 | No. of transactions in 2021 |
|---|---|---|
| The Oceanfront @ Sentosa | 8 | 23 |
| Turquoise | 3 | 17 |
| Seascape @ Sentosa Cove | 2 | ten |
The Oceanfront @ Sentosa was transacting units at Due south$1,539 psf and Turquoise at S$1,489 psf. These two backdrop are considered to exist priced at the lower-end of Sentosa Cove condos. Just who are nosotros kidding? It'southward Sentosa Cove – lower-stop condos are still nice.
We call back they were popular choices because they hit the sweet spot for affordably priced premium living.
Sentosa Cove is part of Commune 4. The median transacted toll for the district and the Cadre Central Region is nearly S$1,800 psf. Already, you know you're not paying a pregnant sum more for properties plant in the same surface area.
To double-check this statistic, we looked up listings on the PropertyGuru site and browsed properties with a flooring area between 1,500 to two,500 sq ft. We also filtered for backdrop priced between Due south$1,480 to S$ane,550 psf.
We discovered that a potential heir-apparent mainly had older freehold or newer 99-leasehold properties for that budget and size. These options were located in the RCR and OCR districts (primarily District 5 and 15). Newer launches include Normanton Park, Kent Ridge Hill Residences, and Parc Clematis in Commune 5, and Affinity At Serangoon in District 9.
So if you do the math, you lot're not paying significantly more for a holding that can afford you lot the same, or nosotros daresay, a better standard of living. In some cases, you're paying less.
Seascape @ Sentosa Cove may be the most expensive condo in Sentosa Cove, transacting at a medium psf of South$2,049. Only when you compare prices to the mainland, information technology does seem you lot are getting blindside for your buck.
According to the PropertyGuru Singapore Belongings Market place Alphabetize Q2 2021, the median psf asking prices for District 1 (Boat Quay, Raffles Place and Marina) and District x (Tanglin, Holland, Bukit Timah) are S$2,424.26 and S$ii,456.xvi respectively.
At this point, if yous're interested, y'all can scan all Marina Collection, Seascape @ Sentosa Cove, Seven Palms Sentosa Cove, The Azure, The Berth by the Cove, The Coast at Sentosa Cove, The Oceanfront @ Sentosa Cove, and Turquoise properties for sale on PropertyGuru.
SPILLOVER EFFECT FROM THE LUXURY Property Market place
And so far, we've gathered that Sentosa homes are priced more than affordably than the same type of backdrop within the same district and other similarly "luxurious" properties. You can put ii and two together to see how attractive the relatively lower Sentosa Cove prices are to potential buyers.
You tin can say that the GCB marketplace is sizzling. It's articulate that the luxury market in mainland Singapore is booming and there is ascent demand for luxury homes in the RCR. Now, let's talk virtually landed property.
Tech CEOs have recently made news for snapping up Good Course Bungalows (GCBs) faster than aunties "chionging" for seats on the MRT.
Withal, Steve Tay, senior associate vice-president of List Sotheby's International Realty, mentions Sentosa Cove bungalows are "undervalued". The "same absolute price breakthrough fetches a freehold bungalow with a smaller country size of v,000 – 7,000 sq ft in the Bukit Timah vicinity".
He goes on to say that locals in their 40s to 60s recognise this. This group of Singapore citizens now contain more than half of the potential buyers who accept taken to viewing villas in Sentosa.
Both non-landed and landed Sentosa Cove properties are the lucky beneficiaries of this spillover effect from the luxury property market. Seems like regardless of how much nosotros have in the banking company, nosotros all honey a good deal, eh?
THE SINGAPORE Government HAS HANDLED COVID-19 WELL, FOREIGNERS ARE LOOKING TO SET UP SHOP HERE
Say what you want, only Singapore is the world's best identify to be during the pandemic. The successful way the Government has handled the crisis has been used as a model for other countries. Add together low tax rates and Singapore's market position as the most stable in Asia into the mix, and our city-state becomes an extremely attractive identify to set upwardly store.
That'southward why despite the twenty per cent Boosted Buyer'south Stamp Duty (ABSD) tax foreigners have to pay, bays homes in areas like Sentosa Cove remain highly coveted, and the interest in luxury homes has boomed.
If you're a pleb like most of us, y'all might not know that you typically have to be a Singapore citizen to buy a Good Grade Bungalow or landed property on our sunny shores. Unless you lot're a Singapore permanent resident who has "fabricated exceptional economic contributions to the Republic" (read: You're Crazy Rich Asians rich), you lot'll probably exist denied approval.
Sentosa Cove remains the only place where foreigners who are not PRs can buy a bungalow for owner-occupation. With only 350 available landed properties on Sentosa, it's no surprise competition is fierce!
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Source: https://cnalifestyle.channelnewsasia.com/exceptional-homes/sentosa-cove-property-285266
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