{"id":56810,"date":"2022-07-22T18:06:58","date_gmt":"2022-07-22T10:06:58","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=56810"},"modified":"2022-07-26T15:57:27","modified_gmt":"2022-07-26T07:57:27","slug":"cape-royales-launch-sentosa-cove","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/cape-royales-launch-sentosa-cove\/","title":{"rendered":"Cape Royale’s launch after 9 years: Is Sentosa’s property market making a comeback?"},"content":{"rendered":"
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Earlier this year, <\/span>Cape Royale<\/span><\/a>, a Sentosa Cove condominium, made headlines for launching for sale nine years after it was completed.<\/span><\/p>\n

When the 302-unit luxury condo launched on 6 July, developers Ho Bee Land and IOI Properties sold about half of the 50 units they put up for sale (according to reports by <\/span>Forbes <\/span><\/a>and <\/span>The Business Times<\/span><\/a>).\u00a0<\/span><\/p>\n

3-bedroom units had a median price of S$4 million, while 4-bedroom units had a median price of S$5.5 million. The psf price started at S$2,103.\u00a0<\/span><\/p>\n

Interestingly, this comes months after a spike in sale transactions of properties in Sentosa was reported in 2021. That\u2019s after years of declining prices and sales.\u00a0<\/span><\/p>\n

With Cape Royale\u2019s latest launch, could it be that the property market in Sentosa is making a comeback? We look at Sentosa\u2019s property landscape over the years and how it\u2019s faring today.<\/span><\/p>\n

Impact of 2013 cooling measures<\/h1>\n

Cape Royale<\/a> TOP-ed in 2013 but its developers didn\u2019t put it up for sale due to several cooling measures that year. Instead, the property was rented out.\u00a0<\/span><\/p>\n

The cooling measures included an increase in <\/span>Additional Buyer\u2019s Stamp Duty (ABSD)<\/span><\/a> for Singaporeans, PRs and foreigners. The<\/span> Total Debt Servicing Ratio<\/span><\/a> was also introduced and this capped monthly loan repayments for buyers at 60% of their monthly income.\u00a0<\/span><\/p>\n

At that time, the average price psf for condos in Sentosa<\/a> was S$2,153, down from S$2,233 in 2012. The number of sales also dropped from 70 to 37 in the same period. Prices went down even more in 2014 to S$1,718 psf with only 22 transactions.\u00a0<\/span><\/p>\n

Subsequently, the number of transactions dwindled, and prices came to an all-time low in 2020 at S$1,418 psf.\u00a0<\/span><\/p>\n

\"sentosa<\/a>
Sale transaction trend of condos in Sentosa, D9, D10 and D11 from 2010 to 2020<\/figcaption><\/figure>\n

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If you compare this to sale transactions in similar wealthy districts like 9, 10 and 11, properties in Sentosa were way more affected. Based on the chart above, the other districts saw some recovery after 2015 (even with cooling measures in 2017 and 2018) but Sentosa went on a downward trend.\u00a0<\/span><\/p>\n

Spike in sale transactions in Sentosa in 2021<\/h1>\n

However, things started to change in 2021, a year into the Covid-19 pandemic. There was a surge in sale transactions in Sentosa.\u00a0<\/span><\/p>\n

\"spike<\/a>
Sale transaction trends for condos and landed houses in Sentosa from 2007 to 2022<\/figcaption><\/figure>\n

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There were 141 condo sale transactions in 2021, which was the highest number since its peak in 2010 (143). Average prices also seemed to be on the road to recovery, at S$1,643 psf. Although this was still far off from the highest average price psf in 2011, S$2,314, it seems like an upward trend as compared to the previous years. This trend is also continuing in 2022 when average prices have increased to S$1,776 psf. There have been 45 transactions so far.\u00a0<\/span><\/p>\n

The allure of Sentosa properties now<\/h1>\n

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1. Average prices in Sentosa are lower than in prime districts in mainland Singapore<\/h2>\n

Gone are the days when living in Sentosa<\/a> are only reserved for the <\/span>ultra-high-net-worth individuals<\/span><\/a>. We\u2019re not saying that you won\u2019t need to have deep pockets (you still do) to own a home in Sentosa but the prices seem more accessible now as compared to a decade ago.\u00a0<\/span><\/p>\n

\"sentosa<\/a>
Average prices of condos in D9, D10 and D11 have overtaken Sentosa in the past 10 years<\/figcaption><\/figure>\n

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Over the past 10 years, the average prices in Districts 9, 10 and 11 have overtaken the average prices in Sentosa. Here\u2019s how they compare now:<\/span><\/p>\n