Prices and transaction volumes for Sensota properties grew from 2019 to 2020 and this increase continued in the first half of 2021.
The COVID-19 pandemic may have boosted demand for luxury properties on Sentosa following a relatively subdued market prior to the pandemic, reported TODAY.
Data from various property consultancies showed that sales transaction volume for non-landed and landed homes within Sentosa have increased from 2019 to 2020. Property prices have also risen.
The hike in transaction volume and prices continued in the first half of 2021.
Analysts noted that the growing demand for properties on Sentosa is in tandem with the recovery seen in the broader housing market on mainland Singapore, particularly among luxury homes.
Although all indicators point to an improvement, the market remains far from its heyday in 2010, when median prices for non-landed homes at Sentosa Cove stand at $2,200 per sq ft (psf).
These prices hovered at about $1,530 psf in H1 2021, showed data from various property consultancies.
The figure is 5.8% higher from 2020’s $1,446 psf and 1.2% higher from 2019’s $1,429 psf.
Sentosa’s landed homes, on the other hand, saw their prices increase by over 8% to $1,650 psf in H1 2021 from $1,518 psf in 2020.
Over at the resale front, at least 60 condominiums and 12 landed properties on Sentosa were sold during H1 2021, up from 43 condominiums and 13 landed properties shifted throughout 2020.
Compared with the 23 condominiums and seven landed properties sold in 2019, 2020 saw condominium sales surge 87%, while sales for landed properties almost doubled.
Meanwhile, rental contracts for Sentosa properties remained stable even as more foreigners were seen leaving the city-state than entering since the COVID-19 pandemic began due to border restrictions.
The number of rental contracts for condominiums in Sentosa Cove climbed 8.6% to 873 in 2020 from 804 in 2019. Rentals for landed properties showed no significant difference over the same period.
In H1 2021, there were 394 rental contracts for non-landed properties and 32 for landed properties.
Analysts attributed the hike in rental contracts for Sentosa properties to the delay in the completion of new housing projects as well as the need for more space amid the work-from-home arrangements.
Wong Xian Yang, Cushman and Wakefield’s Head of Research in Singapore, said the factors driving up sales in Sentosa are similar to trends seen in Singapore’s overall residential market.
This includes low interest rates and the long-term confidence of buyers’ in the city-state’s residential market.
“Singapore has differentiated itself with high vaccination rates and a strong track record in containing the pandemic. This has inspired confidence among well-heeled foreign buyers looking for a safe haven amid the pandemic,” he said as quoted by TODAY.
Christine Sun, OrangeTee and Tie’s Senior Vice-President of Research and Analytics, believes the strong job creation and recovery of the country’s wider economy in H1 2021 also helped attract buyers.
Reports of fund flows into Singapore may have also provided a boost to the property market.
Huttons Asia CEO Mark Yip said the number of single-family offices doubled to about 400 as of end-2020 from 200 in 2019.
Family offices refer to private wealth management advisory companies serving ultra-high-net-worth investors (UHNWI).
“Some of these UHNWI were already residing in Singapore before the pandemic struck and have decided to buy a property as Singapore emerges as one of the best places to be during this pandemic,” said Yip as quoted by TODAY.
This has driven up demand for luxury properties, some of which spilt over to Sentosa Cove, said Wong.
Sentosa Cove is the only place in Singapore where non-residents are allowed to acquire a landed home after securing the necessary approvals.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
