Sentosa Cove condos snapped up after 40% price slash

SINGAPORE: With prices slashed by over 40% from its initial sales launch in 2010, a total of 65 units at The Residences at W Singapore Sentosa Cove were sold Monday and Tuesday.

Around 3,200 visitors turned up for the viewings from April 10 to 14, said a spokesman for Cityview Place Holdings, which owns 203 units at the development.

Cityview, an associate of the condominium developer City Developments (CDL), released 58 units for sale on the first day, which saw 45 units sold, including four penthouses.

On April 16, Cityview released additional units for sale and another 20 units were sold, its spokesman told The Straits Times.

The 65 units were sold at an average selling price of S$1,780 per sq ft (psf ).

In comparison, the median price of Sentosa Cove condominiums sold from January to March 2024 was S$1,999 psf.

The Cityview spokesman said that 94% of the buyers are Singaporeans and permanent residents, with the rest from China, France and the United States.

CDL initially launched the units for sale in 2010 at between S$2,500 psf and S$3,000 psf. Only 20 units were sold that year.

Between 2012, when the development was completed, and 2023, five resale transactions were recorded.

Several rounds of measures rolled out to cool the property market from 2010 had an impact on The Residences at W, which was pulled from sale.

Speaking about the sales this week, industry experts unanimously pointed to the pricing strategy as the main reason for the nearly 80% take-up of units on the first day.

Eugene Lim, key executive officer of ERA Singapore, said: “The competitive pricing has been a key factor in attracting these astute buyers. On a per square foot basis, the price is very attractive for a prime property in Sentosa.”

He added: “Furthermore, the prevalence of hybrid work arrangements and the convenience of last-mile delivery services have mitigated the perceived inconvenience previously associated with Sentosa Cove.”

He noted that the majority of the buyers are older than mid-40s and are probably “seeking a lifestyle home away from the hustle and bustle of the city, and the units are ready for immediate occupancy”.

Nicholas Mak, chief research officer of property portal Mogul.sg, noted a preference for larger living spaces among buyers, with some seeing the prices as a bargain compared with projects outside the central region.

On the first day, more three-bedroom units were sold than two-bedders.

However, Mak cautioned that investing in Sentosa Cove involves considerable risk, as 63% of resale transactions over the past decade resulted in losses.

Those buying the units with a genuine desire for a waterfront residence are likely to find fulfilment in their investment, he said.

Nonetheless, buyers should be aware of the comparatively lower potential for capital gains compared with suburban condos, he added.

He also pointed out that the current price of The Residences at W essentially aligns with the prevailing rates for resale condos in Sentosa Cove.

In 2022 and 2023, the median price for Sentosa Cove condos went above S$2,000 psf, supported by the sales of units in Cape Royale, which were sold at between S$2,000 psf and S$2,300 psf.

The upscale development completed in 2013 hit the market only in 2022, nine years after the project was completed.