Sale prices for luxury bungalows in Sentosa Cove may have fallen this year but reports of the decline may not be taking into consideration some key factors, said one international real estate honcho recently.
Eight Sentosa Cove bungalows were sold in the first six months of 2017 for an average of S$1,541 ($1,153) per sq foot (psf) according to a report released by property consultancy CBRE in August.
It was 18.1% lower than the average selling price of S$1,881 psf in the second half of 2016.
However, the number of transactions is too low to give an accurate sampling reflective of the market segment, said executive director of Christie’s International Real Estate for Asia Pacific and Western North America Mr Zackary Wright, in a recent interview.
Christie’s International Real Estate is an invitation-only luxury residential real estate network with a presence in more than 46 countries including Singapore.
Additionally, 90% of Sentosa Cove bungalows are custom-built by the owners “so the prices vary widely not only by location on the island, but with view, construction, design, and land size being other considerations”.
Mr Wright said: “For those reasons, one or two bungalow sales are not an accurate reflection of the market.”
“Also, since most Sentosa sales are to foreigners, the reported price may not capture other factors like fluctuation of currency.”
The property market has shown positive signs of picking up in recent months partially aided by en bloc fever, which has had a ripple effect of secondary home sales with cash-rich buyers from the en bloc opportunity now looking for a new pad.
Mr Wright said that the property market continues to look promising with an “increasing scarcity of product being the major driving factor”.
He said: “Singapore should maintain its position as a global financial centre and the strong market should continue.”