Despair sale at ultra-luxury Seven Palms

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August 11, 2018 1:40 PM SGT
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Seven Palms, the most luxurious condominium in Sentosa Cove, has been known for setting benchmark prices in Singapore’s foremost waterfront enclave. When the project was launched in 4Q2009, seven units were sold at prices ranging from $3,091 to $3,353 psf. In terms of absolute prices, these units, which ranged from three-bedroom apartments of 2,702 sq ft to four-bedroom units of 4,273 sq ft, went for $8.35 million to $13.9 million, according to caveats lodged.
Seven Palms in Sentosa Cove is an ultra-luxury development by SC Global Developments (Pictures: Samuel Isaac Chua/ The Edge Singapore)
The 41-unit luxury condo by SC Global Developments was the first condominium development in Sentosa Cove to see sales of its units cross the $3,000 psf price threshold. It also boasts several tycoons among its homebuyers.
In 2012, it was reported that Australian mining magnate Gina Rinehart spent $57 million for two units — a three-bedroom unit on the third floor and another three-bedroom unit directly above it on the fourth floor — with a total strata area of 13,500 sq ft. The transaction set a new record of $4,200 psf, breaking yet another price threshold for the 99-year leasehold development.
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The private beach lounge at Seven Palms has direct access to Sentosa’s Tanjong Beach
Ricardo Portabella Peralta, the Spanish president, CEO and managing director of Luxembourg- based investment firm Ventos SA, was also said to have purchased two adjacent units with a total strata area of 6,900 sq ft for $28.55 million ($4,131 psf), according to a caveat lodged in November 2014.
The most recent transaction was for a 4,241 sq ft, four-bedroom unit that was sold to a local buyer for $15.78 million ($3,721 psf) in March 2016, according to caveats lodged.
The 45m infinity pool beside the beach at Seven Palms
However, it looks like Seven Palms could now set a record of a different sort. In one of its first sales in the secondary market, an owner is prepared to sell his unit at a price below his purchase price. The ground-floor, four-bedroom unit has a sea view and comes with a private lap pool.
The owner is a foreigner who purchased the unit in 2010. When it was completed in 2013, he lived in it for two years before returning to his home country. Since 2015, the unit has been leased to a tenant at $30,000 a month. The lease is said to expire in September 2019.
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The ground-floor unit has a private lap pool with unobstructed views of the sea and beach
According to Jeffrey Chow, an ERA Realty branch division director who is marketing the unit on behalf of the owner, the latter has retired to his home country and wishes to sell the property.
The asking price for the unit is $12 million ($2,489 psf). This is about $4 million below the owner’s purchase price of $16 million eight years ago. Based on the price tag and the current rent, the gross rental yield for the unit is 3% per annum, which is quite attractive, says Chow.
The beach lounge at Seven Palms
Since the unit was launched for sale in July, it has attracted interest from both Singaporeans and permanent residents, some of whom are interested in occupying the unit themselves, he adds.
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The unit is attractive, as it is the closest to the beach and the swimming pool. Also, as it is a corner unit, it is secluded and yet has one of the best views in Seven Palms, says Chow.