IN the same week that a bungalow on Sentosa Cove was sold at a near-record price, another sale has been concluded in the waterfront housing district at what some may consider a bargain basement price for an ultra-prime locale.
BT has learnt that a seafronting bungalow along Cove Drive with views of the Southern Islands has been sold for just S$1,108 per square foot on land area.
This comes barely a week after news of a bungalow along Ocean Drive being transacted at a near-record price of S$2,923 psf.
The price for the Cove Drive property has baffled property market watchers, given its posh location in the southern precinct.
The bungalow is being sold by an Indian citizen to a Singaporean of Indian descent in her early 20s whose father was previously a senior UBS executive.
Market observers note that the house appears to have been vacant since it was built about five years ago. The absolute price is S$9 million and the property is on 8,126 square feet of land with 99-year leasehold tenure starting Jan 30, 2007.
It spans two storeys and a basement. There is a pool on the ground level facing the Southern Islands. "The house appears to be properly finished but it's just that the lighting and other fittings, furnishings are missing," said a source. "Assuming one were to spend a further S$2 million fitting it out, the total cost of S$11 million would work out to S$1,354 psf - which still seems low."
Agreeing, Singapore Christie's International Real Estate managing director Samuel Eyo said: "The market rate for a fully furnished house in liveable condition in a prime location like this would be at least S$2,500 psf on land."
This could be a one-off transaction, just as the Ocean Drive deal could also be seen as a one-off and not reflective of a broad-based recovery of bungalow prices on Sentosa Cove to peak levels, he added.
The Ocean Drive bungalow, which changed hands for S$28 million, is on 9,580 sq ft of land with 99-year-leasehold tenure starting June 2005. The seller is said to have invested a few million dollars fitting out the interior.
That property fronts the sea but also has views of the container terminals and Singapore's Central Business District. It is located in the northern precinct of Sentosa Cove, which was the first phase of the development of the waterfront residential district.
The Cove Drive bungalow is located in the southern precinct, where residential land parcels were sold later.
The bungalow location, with its Southern Islands facing, is considered superior to the one along Ocean Drive and is in a quieter area. Market watchers note that the Sentosa Cove bungalow market is currently illiquid, so it may be difficult to draw conclusions from each transaction. "Each deal may have very specific factors at play, not just in terms of property attributes but the buyer's and seller's intentions," said Mr Eyo.
This article was first published on October 8, 2016.
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