SINGAPORE (EDGEPROP) - Some of the lustre that comes with owning a prime Sentosa Cove bungalow continues to attract a niche group of new homeowners, while the relative scarcity of these sea-facing bungalows continues to support their premium prices on the resale market.
As such, the mortgagee sale of a bungalow at Treasure Island has stirred the interest of several groups of buyers. It is the first time a bungalow on Treasure Island is being offered in a mortgagee sale and the property is marketed by the auction team at PropNex Realty.
Viewings for the house started on March 18. In its first five days on the market, the property attracted at least five groups of potential buyers, with the number of scheduled viewings set to increase over the coming days, says Clarence Goh, head of corporate sales & auction at PropNex Realty.
The 99-year leasehold property has a guide price of $12.9 million. It sits on an 8,379 sq ft plot and the guide price translates to about $1,539 psf on the land area.
“The current guide price for this bungalow on Treasure Island is attractive, given the asking prices for some neighbouring bungalows that are also on the market,” says Leonard Lee, associate group director at PropNex Realty. At least three bungalows on Treasure Island are listed for sale on EdgeProp.sg property portal and their prices range from $16 million ($1,851 psf) to $26 million ($2,087 psf).
According to Goh, prices of landed properties in Sentosa Cove have stabilised over the past few years and most are selling at below peak prices. He adds: “Foreigners remain attracted to the houses in Sentosa Cove as these are the only landed properties in Singapore that foreign buyers are eligible to own.”
The two-storey bungalow has a built-up area of 9,362 sq ft. There are four en suite bedrooms as well as an attic and a basement. The living and dining room on the ground floor boasts floor-to-ceiling windows that let in natural light, and most rooms in the house are brightly lit during the day. The property also has a flexible layout, with an uninterrupted living and dining area on the ground floor.
“In terms of the overall condition of this bungalow, the new owner would have to undertake renovation works to refresh the layout, as well as design a home that fits his preferred lifestyle,” says Lee.
He adds that most bungalows in Sentosa Cove that are on the market are usually well-kept and can command average asking prices of about $20 million.
“If this bungalow on Treasure Island is sold at its guide price and the new owner renovates it for about $2 million, he could own a new luxurious house on a par with others in the neighbourhood,” says Lee. Alternatively, he reckons, a full rebuild of the house could amount to about $5 million.
Most buyers who pick a home in Sentosa Cove typically find the resort-like lifestyle more appealing compared to living in a landed housing estate on the mainland, and this has attracted a niche group of foreign and local buyers, says Goh.
According to Lee, foreign buyers make up about half of the interested, potential buyers for the Treasure Island bungalow, and most are from China and India. Local buying interest in the Sentosa Cove bungalow market is at an unprecedented level too, notes Lee.
“Most bungalows in Sentosa Cove come with their own unique selling points, such as facing either the sea or one of the waterways. Other factors include the plot size and shape of the site, as well as the overall build quality of the house,” says Goh.
Due to the slim and narrow shape of Treasure Island, bungalows there have a wider frontage compared to homes on other islands which tend to have deeper layouts, says Lee. The bungalow for sale at Treasure Island has a 27m frontage and the site is about 31m deep.
Despite its short time on the market, Goh is not surprised that the bungalow at Treasure Island has garnered keen buyer interest. “Bungalows on Treasure Island are rarely put up for sale. The scarcity of available properties on this island, coupled with its attractive guide price, has helped to boost overall interest for this property,” says Goh.
Bungalows on Treasure Island are also the closest to the amenities that serve the residential enclave, including Quayside Isle, the only dining and retail development within Sentosa Cove. It is also one of the closest to One15 Marina Club. All 19 houses on the island come with private berth.
Close to a year ago, the economic contraction caused by the effects of the pandemic fuelled concerns that there would be a spike in mortgagee property listings in 2021. It was believed this would coincide with the end of most of the government’s extensive support programmes and interest repayment deferrals.
However, Goh does not expect to see a spike in mortgagee listings this year. “With property measures still in force, I believe the market is more resilient now,” he says.
Instead, he expects more buyers to prefer closing deals via private treaty rather than at auctions due to the 10% upfront deposit that has to be paid on the spot at the end of the auction, he says. “Unless of course, there is more than one interested party bidding for the property during the auction,” he adds.
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