Sentosa Cove home sales this year increase by 72%, amounting to $610M

Analysts believe Sentosa’s high transactions are due to relatively lower prices compared to those on the mainland  

According to PropertyGuru Singapore, the island of Sentosa reached a new record in home sales during the first eight months of 2021.  

Data from the Urban Redevelopment Authority (URA) revealed that there have been 103 transactions on Sentosa Cove as of August 16.  

The transactions comprised 85 condominiums and 18 landed homes, an 84 percent increase from the 43 condominiums and 13 landed homes throughout 2020.  

This year’s sales surged 72 percent from last year, amounting to SGD610 million (USD453.7 million).  

Some analysts believe that this new transaction record is a spillover from the growing demand for luxury homes in the Rest of Central Region (RCR), as Sentosa Cove’s prices are relatively lower than those on the mainland.  

URA data also showed that overall private property prices in Singapore were up 4.1 percent in H1 2021 and 7.1 percent in H2 2021.  

Nicholas Mak, head of research and consultancy at ERA Realty, said the mainland’s surge in property prices “makes the resale prices in Sentosa Cove look relatively attractive”. He added that Sentosa homes could experience a price recovery from this year’s high transaction volume.  

Sentosa Cove started as a residential zone in 2006, consisting of 2,160 homes that range from high-rise condominiums to luxury bungalows.  

Condominium prices on the island declined by around 40 percent since its peak in 2010, while landed home prices started dropping in 2016.  

However, Sentosa Cove prices have been increasing since 2020, with Singaporeans accounting for half of the buyers this year.  

More: Singapore real estate rebounds as luxury sales amount to $7.5 billion in 2021

Property agents pointed to the pandemic as a key reason for Singaporeans increased interest in Sentosa Cove homes.  

Nicole Teo, senior associate group director at OrangeTee & Tie, said, “After a few years of languishing in the property market due to the introduction of ABSD (Additional Buyer’s Stamp Duty) for foreigners, it’s Sentosa’s moment in the sun now.”