Amid the warnings that have crept into the property market for mainstream condominiums in May, a record price has been set in Sentosa Cove for a top-end bungalow.
The bungalow, which is located at Paradise Island, was sold in the resale market for $36 million or $2,403 psf on land area last month, the priciest deal for a bungalow in the upscale waterfront housing district. Both the unit land price and absolute amount are based on caveat records by the URA Realis system.
According to several property agents, the $2,403-psf-unit land price is nearly the highest price for a bungalow deal in Singapore. The bungalow, which has been brokered by DTZ, has a berth for a yacht and a private pool. Houses on Sentosa Cove are being sold on 99-year leasehold period.
The new owner of the two-and-a-half storey Paradise Island bungalow is a Chinese national who is also a Singapore PR. The Singaporean sellers have reaped a handsome profit out of the development. The bungalow was last transacted in September 2009 for $20.18 million ($1,347 psf), and it was sold by Ho Bee in April 2007 for $18.1 million ($1,208 psf). The house has a built up area of about 17,000 sq ft and a total area of 14,983 sq ft.
Ong Choon Fah, executive director of DTZ, is not expecting prices for bungalows on Sentosa Cove to escalate at the same pace, given the alarming global economic downturn which could dent foreign interest. "However, there is limited supply of just 400 landed homes on Sentosa Cove. And long-term investors may draw the conclusion that putting their money in the Singapore property market is a good investment when you consider the alternatives," she said.
Sentosa Cove is the only place where none Singapore permanent residents who are foreigners are allowed to purchase landed homes, though it still needs approval from the Land Dealings Unit. Foreigners purchasing a landed home on Sentosa Cove need not hold the property for three years before reselling it, compared to when they purchase a property on the mainland.