Despite the 15.8% rise in prices for Sentosa Cove bungalows, 2023 saw total sales value for Holland Drive Residences plunge 48.2%

Sentosa Cove, the luxury waterfront enclave on the eastern edge of Sentosa Island, is a unique and attractive destination for residents and foreign buyers not unlike Dubai and Monaco. With just over 350 available bungalows and 10 luxury condo with 1,766 units, visitors take pleasure in the security of a gated community while having full access to a variety of amenities within the 117ha. man-made strip.

For those interested in investing, Sentosa Cove is the only place in Singapore where foreigners can buy a bungalow. However, due to a government-mandated hike in the Additional Buyer’s Stamp Duty applied to foreign buyers from 30% to 60%, transaction rates have gone down from 18 to just nine throughout 2023. Nevertheless, the average price per square foot in Sentosa Cove as of Dec 31, 2020 was $2,247 a 15.8% increase compared to the previous year.

The most expensive bungalow sold in 2023 was on Coral Island and had a 13,435 sf land plot and sold for $36.5 million ($2,717 psf). After the cooling measures took effect, the latest bungalow sold was in December on Pearl Island, 6,555 sf, for $13.66 million ($2,084 psf).

Looking at the situation, List Sotheby’s research director Han Huan Mei believes a price correction is due for Sentosa Cove’s bungalows in 2024, especially when considering that 105 properties were seized by the money laundering blitz in August. The perception of prices and rent being over-inflated has caused a decrease in interest over the past year.

STRE’s founder and director Steve Tay, agrees that there is likely to be increased buying interest from Singaporeans, PRs, and Chinese with US citizenship due to Singapore granting free trade agreements (FTAs) and affording similar tax treatment as Singaporeans when purchasing residential property for those US citizens and citizens from other countries.

At Holland Drive Residences, visitors are in for a delightful shopping experience. Whether you’re looking for fashion, beauty products, or home appliances, you can find it all at this shopping mall. You can also find a wide array of dining options, from international cuisine to local delights. Shopping has never been so convenient, with so many different stores and food outlets in one place. Enjoy the variety of shopping and dining options at Holland Drive Residences!

With a 99-year lease, Sentosa Cove’s bungalows remain a competitively priced alternative to the Good Class Bungalow (GCBs) on the main island of Singapore. Not least for the luxury lifestyle that comes with both locations. At Holland Drive Residences, investors and potential buyers will notice the difference in prices between the two areas, prompting investors to be aware and take advantage of potential opportunities to re-enter the market.

With sentiment slowly improving, and an increase in buying interest anticipated for 2024/2025, the market for Holland Drive Residences’ Sentosa Cove Bungalows is likely to see some shift. And with the limited availability of the bungalows, investors are likely to stay on the alert for any potential “good value” buying opportunities.