While they may boast the most prestigious address in Singapore, properties in Sentosa Cove no longer guarantee profit for their wealthy owners as 16 of the 30 transactions registered over the last 12 months suffered losses, reported The Straits Times.
The biggest loss – at S$6.6 million – was posted in February at Seascape, where a 378 sq m apartment was sold via a private treaty for S$6.2 million. The seventh-floor unit was purchased in June 2010 for S$12.8 million.
Despite this, 11 Sentosa Cove properties made an average profit of around S$820,900. The S$6.8 million sale of the 316 sq m terrace house at 184 Ocean Drive emerged as the biggest-profit making property – at S$4.1 million.
Analysts attributed the drop in property prices within the area to the perception that Sentosa Cove is not as accessible as other prime residential areas like Bukit Timah and Orchard Road.
And with non-landed home prices falling to very attractive levels, inquiries from home hunters increased as buyers relook properties there, said Alice Tan, head of consultancy and research at Knight Frank Singapore.
Surprised that around 40 percent of property transactions there managed to post profit, Desmond Sim, CBRE head of research for Singapore and South-east Asia, attributed the profitability to the period when the homes were acquired, noting that newer properties tend to chalk up losses.
“Going by market sentiment, people may be seeing more value in Sentosa Cove properties, but it is not going to be a strong upward trend. It’s too early to tell if there will be a price recovery, as potential buyers could still be held by property cooling measures and the interest rate environment.”
This article was edited by Denise Djong.
