Sales of non-landed homes in Sentosa have declined significantly in the last three years, as government measures such as the Additional Buyer’s Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR) framework continue to bite, said media reports.
Based on URA data, only 10 non-landed homes were transacted there in the first seven months of 2014. In comparison, there were 34 and 71 deals done for the whole of 2013 and 2012 respectively.
Although most owners of luxury homes can afford to wait before they sell their property, some may have been compelled to sell due to financial problems, while some may have eked out a profit.
For instance, a 3,046 sq ft penthouse unit at The Berth By The Cove was sold for $3.5 million or $1,150 psf in July, which is cheap by Sentosa Cove standards.
Moreover, three recent transactions in the secondary market were below market value, according to Century 21 Singapore. Two units at Turquoise were priced at $1,500 psf, while another at The Oceanfront went for more than $1,600 psf.
But before the ABSD was imposed, Sentosa condos commanded an average psf price of close to $1,900 to $2,000 in 2011 and 2012, said PropNex CEO Mohamed Ismail.
“Some of the good facing units were above $2,000 psf. Right now, it has dropped on average (by) about 20 percent. Today, the average price of most of the Sentosa units is about $1,500 to $ 1,600 psf,” he added.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
