Three bungalows were sold in Sentosa Cove during the second half of 2014 after zero sales were recorded in the previous six months while 2013 saw a total of 18 such deals, according to CBRE Research.
The sharp drop was attributed to the 15 percent Additional Buyer’s Stamp Duty (ABSD) imposed on foreign buyers.
The properties sold last year went at an average price of $1,676 psf, representing a 20 percent decrease from the previous year. The significant drop is partly because all three units face the waterway instead of the open sea.
Meanwhile, more than 20 bungalows on the island were leased out during 2H2014. Their monthly rents ranged between $17,000 and $25,000, depending on size, location, orientation, built-up area and quality of finishes.
According to CBRE, local homeowners are permitted to lease out their bungalows while waiting for the market to recover.
Looking ahead, property sales in the posh enclave are expected to remain tepid this year given the uncertain global economy, the consultancy added.
Nevertheless, it has been a better start to the year after a two-storey bungalow was sold for $22 million in February 2015, translating to a profit of $7 million. The 99-year leasehold property had been owned by fruit and veggie tycoon Lim Chin Huat and his wife Yap Seok Bee, while the buyer is someone with an HDB address.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
