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Sentosa Cove properties could rise 10-15% a year: consultants
By Matthias Chan, Channel NewsAsia | Posted: 17 July 2006 2021 hrs

	Sentosa

High-end property prices at the Sentosa Cove area could rise 10 to 15 percent annually, according to consultants.

They were responding to the strong take-up at The Oceanfront at Sentosa Cove development by City Developments.

And even though less 40 percent of the properties planned for Sentosa Cove have been launched for sale, analysts say an oversupply situation is unlikely if foreign buying remains strong.

About 85 percent of The Oceanfront at Sentosa Cove was sold at $1,300 per square foot - the highest achieved so far for the area.

And this is after barely a week of its launch.

Though launched at 30 percent higher than the previous project, some consultants say there is more upside to prices in the Sentosa Cove vicinity.

Peter Ow, Executive Director - Residential, Knight Frank, said: "It was actually beyond the expectations of a lot of people. We expect that kind of prices to be achievable but not in terms of the take-up in such a short time. For high-end properties like properties in the Cove, I would expect a higher percentage when we talk about capital appreciation. It could be anything between 10 to 15 percent."

But the expected supply of units in Sentosa Cove in the next two to three years is not worrying consultants for now.

So far only about 900 out of the estimated 2,500 landed and non-landed units on Sentosa Cove have been launched for sale.

But some consultants say that if foreign buying, which made up some 50 to 60 percent of recent purchases, continue its momentum, finding buyers for future launches should not be a problem.

In the Claymore area in the city, the latest en-bloc sale of Habitat One is further proof of the strength in the high-end sector.

With a price tag of S$180 million, breakeven is expected to be about S$1,800 per square foot.

And some consultants say, a new development at the site could possibly fetch the S$2,600 to S$2,800 per square foot achieved at St Regis.

Tan Tiong Cheng, Managing Director, Knight Frank, said: "St Regis has packaged itself as a brand offering services that are not available in a typical condominium. So people are paying a premium for the branding. If you look at the Ardmore Claymore area, it is a quieter precinct, so there will be people who pay for that premium. Yes, there is a strong possibility it can reach that sort of premium."

Developer Wheelock Properties, which owned two adjacent sites, has announced that it was the buyer of the Habitat One plot. - CNA/ch