A golf-course fronting bungalow overlooking the sea in Sentosa Cove has sold for S$23.8 million or S$2,775 psf.
The bungalow with a remaining lease term of 89 years at Lakeshore View sits on a 8,576 sq ft land plot.
This is the highest psf price achieved over the last 2 years and is only outperformed by 2 other villas transactions along the same stretch done in 2013 at S$2,922 psf and S$2,952 psf, before the total debt servicing ratio (TDSR).
The 3.5 storey bungalow inclusive of a roof terrace with a jacuzz has four bedrooms, a theatre room and a swimming pool with a built-up area of approximately 10,000 sq ft.
The buyer is a Chinese businesswoman. The sellers are three siblings from a Hong Kong family, two of whom are British citizens and the third, a Singapore citizen.
For the past 2 years, villas on Sentosa Cove were sold at a price range between S$1,386 psf and S$2,612 psf, based on URA records.
The relatively high pricing of S$2,775 psf achieved for the property confirms that premium property can command a good price, albeit slightly lower than the peak prices due to softening demand.
Most foreign buyers eyeing Sentosa Cove villas, an enclave with only 360-plus bungalows, are Asians. Further release of more land for villas in Sentosa Cove is not in the cards.
6 bungalows have changed hands for this year to date, doubling the three deals for 2014. The transaction figures for 2013 was 18 transactions and for 2012 is 23.
Back in 2009, there were 36 deals, followed by a record 54 transactions in 2010 before activity began slowing to just 24 deals in 2011 - due to the onset of property cooling measures.
On the rental scene in Sentosa Cove, the leasing market is more active. Tenants are typically western foreigners, taking a two to three-year lease. Rentals range from about S$20,000 to S$30,000 a month depending on the bungalow location, size and facing.
Tenants are mostly top-ranking executives.
Foreigners or Singapore permanent residents (PR) granted permission by the authorities to own a landed home on Sentosa Cove are not allowed to lease it out.
Source: Business Times