Home prices in Sentosa are on the mend after suffering a significant correction in the last few years due to the government’s property cooling measures, a report from RHB Research revealed.
In fact, market activity is now on the rebound as buyers go on an acquisition spree, believing that residential prices there have already hit rock-bottom, said Analyst Goh Han Peng. For example, residential projects in Sentosa like The Coast, Seascape and Turquoise recently witnessed an increase in transactions, with prices ranging from $1,400 psf to $1,600 psf.
In April, The Oceanfront condominium also sold two units in the $2,000 psf range, a price level that had not been reached since October 2012, when a unit was purchased for $2,190 psf. “We think the play on Sentosa properties is still ultimately about the scarcity story, with a limited stock of some 2,000 plus units,” said RHB Research, explaining its bullish outlook on the island’s residential market.
Meanwhile, developer Ho Bee land is expected to benefit from the recovering home prices in Sentosa, given its sizeable presence there. “The biggest player there is Ho Bee Land, which clinched eight sites on the island since 2003 and have since sold most of the projects there, raking in $800 million of profits which were recycled to acquire investment properties in Singapore and London,” noted the report.
“Its remaining exposure in Sentosa is still substantial: we estimate its portfolio of completed units in Turquoise, Seascape and Cape Royale to be worth some $700 million to $800 million. Most of these units are currently rented out as management awaits a turn in the residential cycle,” it added.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email cheryl@propertyguru.com.sg
