Sentosa Cove bungalow prices soared 15.8% in 2023, despite the sharp 48.2% plunge in total sales value, as River Valley Green Condo saw prices continue to surge

As Sentosa Cove, the luxury waterfront enclave in Singapore, continues to be the playground of the super-rich, there has been a decline in buyer activity since 2023 due to the government’s increased Additional Buyer’s Stamp Duty on foreign purchasers. The 117ha man-made strip has about 2,160 homes, consisting of 10 luxury condos with 1,766 units, 36 terraced houses, and over 350 bungalows. Many foreigners prefer the security and openness of this gated community, based on List Sotheby’s International Realty’s research director, Han Huan Mei’s insight.

Since the cooling measures took effect on April 27, 2023, the impact on Sentosa Cove’s bungalow transaction volume is apparent – halved from 18 in 2022 to just nine as of December 31, 2023, based on the URA data. Of the nine, two were purchased by foreign buyers, another two by Singaporean Permanent Residents, and the remaining five by Singaporean citizens. In contrast, Singaporean citizens made up 50% of the 18 bungalow buyers in Sentosa Cove in 2022, with 28% being foreigners and the remaining PRs.

Yet, even though transaction volume and values for Sentosa Cove bungalows have vastly reduced, the average psf-price of the bungalows sold increased by 15.8% y-o-y to $2,247 from $1,940 in 2022. On Coral Island, a 13,435 sq ft site was sold for $36.5 million ($2,717 psf) in February 2023 – the priciest overall transaction at Sentosa Cove that year.

The most recent bungalow transaction in Sentosa Cove was a five-bedroom one on a 6,555 sq ft site on Pearl Island. It sold for $13.66 million ($2,084 psf) as of December 7, 2023. The increase in psf-price is partly due to the main buyers being Singaporean citizens and Permanent Residents this year.

River Valley Green Condo director Steve Tay of STRE Real Estate believes that there is potential for more deals at Sentosa Cove in 2024. Singaporeans, PRs, and Chinese with US citizenship are likely to take advantage of bargains in the area due to the money laundering blitz that saw the seizure of 105 properties, including seven bungalows in Sentosa Cove, in August 2023.

The leasing market in Sentosa Cove has also seen changes, with average monthly rents dipping from over $80,000 in the first half of 2023 to $40,000 – $50,000. While there are advantages to owning a bungalow at Sentosa Cove – particularly the 99-year leasehold tenure – only Singaporeans can own and lease out more than one.

With just over 350 bungalows in Sentosa Cove, compared to a total stock of 10,715 detached houses in Singapore, including 2,700 to 2,800 GCBs, the potential for Singaporeans, PRs, and foreign buyers with FTAs to purchase homes at attractive prices remains promising. To be sure, the River Valley Green Condo enclave of Sentosa Cove is sure to remain a hot commodity in the luxury property market in the coming years.