Sentosa Cove homes are emerging as exceptional investment opportunities
Ask Singaporeans what they think of Sentosa Cove, and you may hear responses like “posh,” “rich,” or “status symbol”. Sentosa Cove is about swanky cars and beautiful architecture, but there is also more. Homes in Sentosa Cove offer a unique blend of luxury and leisure that is hard to find elsewhere.
When the Sentosa Cove Masterplan was first conceptualized in 1992, Sentosa Cove was envisioned to be Singapore’s top waterfront resort living location inspired by Port Grimaud in France. It is another option for wealthy individuals and families seeking respite from the urban hustle and bustle. It also caters to those yearning for the resort lifestyle in Dubai’s Palm Jumeirah or Florida’s Palm Beach.
Another attraction is foreigners who are non-permanent residents can buy landed homes in Sentosa Cove.
Three decades later, Sentosa Cove matured and became an established high-end residential island enclave in Singapore. Here, let us review and unpack Sentosa Cove and its relevance in the Singapore housing market today.
Why You Need To Own a Slice of lt
There are only so many homes here
With the sale of its first land parcel in 2003, Sentosa Cove heralded a new era of luxury waterfront living in Singapore. By 2006, the first development on Sentosa Cove was completed, and by 2008, all land parcels had been sold. Sentosa Cove was paving its way towards becoming a prestigious waterfront community. It enticed affluent individuals from around the world to invest in Singapore.
Zoned within the Core Central Region (CCR), Sentosa Cove boasts 2,160 residential homes. Approximately 16% of these are landed homes. This makes up about 0.5% of Singapore’s total private homes stock. All the homes at Sentosa Cove are on 99-year leases. However, the allure of true waterfront living and its coveted address is compelling enough for one to aspire to own a piece of Sentosa Cove. According to Squarefoot research, Singaporeans account for close to 50% of the buyers of new homes at Sentosa Cove. Meanwhile, Singapore Permanent Residents and Foreigners account for 21% and 23% respectively.
There have also been changes and developments over the years. For instance, foreign buyers can now only purchase one detached house in Sentosa Cove for their own use. The Long-Term Visit Pass scheme, which grantedย foreign buyers in Sentosa Cove long-term stay within Singapore, was also terminated in 2014. It should be noted that Singaporeans face no restrictions on the number of detached houses they can buy, and they can also lease out their units.
Two decades on, Sentosa Cove has blossomed into a self-sufficient upscale neighborhood
Today, Sentosa Cove has evolved into a luxury residential enclave and has become a cosmopolitan melting pot for local and foreign homeowners and global expatriate tenants.
Beyond its curated selection of lifestyle and F&B offerings along Quayside Isle, Sentosa Cove also has important amenities like supermarkets and preschools, catering to the diverse daily needs of its residents.
The nearby ONE15 Marina Club and the world-renowned Sentosa Golf Club offer leisure and recreational opportunities and hubs for socializing among the widely traveled and well-heeled.
Homes in Sentosa Cove are highly coveted for the status symbol and lifestyle they represent. Landed homes, in particular, can be customized to owners’ preferences, and many homes have been built that are well known for their quirky, eye-catching architecture and design. Many also have expansive interior and exterior spaces to host memorable parties for friends and business partners.
How Have Home Prices at Sentosa Cove Fared So Far?
We have segmented our analysis into three distinct periods. Each period reflects unique market conditions shaped by government policies, economic developments, and external events. We will juxtapose Sentosa Cove’s home prices with those in the CCR.
Conception of Sentosa Cove (2004 – 2010)
With successive new home launches in the area, Sentosa Cove experienced robust home sales and significant price growth. Transaction volume steadily rose, reaching a peak in 2006 with 522 transactions. During this period, non-landed and landed property prices saw substantial appreciation. Non-landed properties surged from $829 per square foot (psf) in 2004 to $2,325 psf in 2010, while landed properties followed a similar trajectory, climbing from $765 psf to $1,933 psf.
Pre COVID-19 (2011 – 2019)
Between 2011 and 2020, multiple rounds of cooling measures effectively dampened foreign buyer interest in Sentosa Cove. Additionally, global economic headwinds exacerbated the decline in foreign buyer demand, leading to a notable decrease in both home prices and transaction volume. By 2015, the average non-landed home prices had come off by 34.4% from their peak in 2010, while landed homes experienced a more gradual price decline. After 2017, home prices began to decline gradually, in stark contrast to the continued price increase observed in the CCR.
COVID-19 and Post-COVID-19 (2020-2023)
From 2021 to 2023, a post-COVID housing demand boom fueled by pent-up demand renewed buyers’ interest in Sentosa Cove. During this period, prices for non-landed properties in Sentosa Cove increased by 14.8%, while landed properties saw a growth of 25.7%. Transaction volume in 2021 reached a 10-year peak, reflecting heightened market activity. However, the market’s momentum slowed thereafter due to the April 2023 Additional Buyer Stamp Duty (ABSD) hike, imposing a hefty 60% tax on foreign buyers purchasing residential properties.
There was recovery in home prices at Sentosa Cove, but they remained comparatively lower than homes in the CCR.
Sentosa Cove’s Rental Market
Between 2015 and 2023, Sentosa Cove saw an average of 764 non-landed units, and 57 landed homes rented annually. This accounted for almost 38% of the total homes. Non-landed rents are comparable to those in the Core Central Region (CCR), while landed rents have risen steadily. High-net-worth expatriates looking for waterfront homes are willing to pay higher rents for the unique island living offerings.
What Draws Investors to Sentosa Cove?
Sentosa Cove to benefit from the Sentosa-Brani Masterplan Development
Announced in 2019, the Sentosa-Brani Masterplan has a vision to connect the two islands into a game-changing leisure and tourism destination. There will be five zones that will see new indoor and outdoor attractions for families, nature lovers, and adventure seekers. In addition, the opening of the 30,000 square meter (sqm) multisensory two-tiered walkway will integrate and connect Resorts World Sentosa in the north with Sentosa’s beaches in the south. Sentosa is also part of the Greater Southern Waterfront plans.
Future of work
In a post-pandemic world where hybrid or remote work has become prevalent, Sentosa Cove emerged as a choice place of residence. Its serene and idyllic environment and its choice of amenities make it attractive and convenient for those pursuing a refined lifestyle whilst working from home. Sentosa Cove is already self-sufficient, and enhanced last-mile delivery options have further enhanced its attraction as an abode.
Singapore’s reputation as a safe haven attracts High Net Worth Indviduals (HNWIs)
Singapore’s reputation for safety, political stability, and economic resilience continues to attract foreign investors. The government has been relentlessly pursuing High Net Worth Individuals (HNWls) and talents to Singapore through various schemes, enticing them to invest here, including in residential properties.
The Global Investor Programme allows HNWls who generate economic spin-offs and create employment to attain Permanent Residency status. To do so, they can choose to invest at least S$10 million in a business or S$25 million in an approved fund.
Other long-term programs for high-income, skilled foreign talents include the Overseas Networks & Expertise Pass and the Tech Pass.
Recognized as a wealth hub in Asia, Singapore attracts strong foreign direct investments and more than 2,000 family offices have been established in Singapore as of 2024. Moreover, KPMG Private Enterprise and family office consultancy Agreus estimated that as of 2023, 59% of all family offices in Asia are based in Singapore. However, the government can do more to attract more foreign buyers to Sentosa Cove.
Perhaps it’s time to reduce ABSD for foreign buyers purchasing properties in Sentosa Cove
The initial vision for Sentosa Cove was conceived to position Singapore as a premier waterfront living destination for the affluent.ย
In the past period, home price growth has not kept pace with homes on the main island. In 2023, the CCR average home prices reached around $2,510 psf compared to the average $1,992 psf.
One potential solution is to reduce the ABSD payable by foreign buyers purchasing homes at Sentosa Cove from 60% to 20%. This would align with what a Singaporean would pay when buying a second property with this change. It may redirect more foreign buyers’ interest.
Sentosa Cove has become a choice waterfront living enclave in the region
Singapore will continue to be a magnet for global investors with its reputation for safety, political stability, and ease of doing business. This, in turn, will help support the Singapore property market over the long term.
Sentosa Cove offers a differentiated product and presents an opportunity for those aspiring to enjoy luxury waterfront living. Local buyers should not miss out.
Sentosa Cove is still priced below homes in the CCR, presenting good value for buyers. Going forward, with the anticipated rising home prices across the island, coupled with the redevelopment in Sentosa and around it, home prices could see further appreciation in the future.
Here are some exciting projects to consider.
The Green Collection
The only luxury cluster landed houses in Sentosa Cove
20 exquisite cluster homes, each with five lavish en-suite bedrooms Meticulously designed for subtle yet opulent living
Exclusive address fronting the prestigious Tanjong Golf Course, a venue synonymous with international golfing events Considerate inclusion of internal lift for added convenience Spacious living areas for quality family living
The epitome of quiet luxury: a landed property with the amenities of a high-end condominium
*Available for non-Singaporean Citizens, with LDAU approval
Cape Royle
The tallest and newest residential condo in Sentosa Cove
Cape Royale is not only the tallest condominium in Sentosa Cove but also the newest. Situated at the marina’s entrance, Cape Royale residents enjoy breathtaking views of the South China Sea, the greenery at Tanjong Golf Course, and the charming marina.
Ho Bee Land and IOI Properties jointly develop Cape Royale. There are 302 luxurious 3-bedroom and 4-bedroom apartments, and every unit has a private lift lobby. Residents have easy access to One015 Marina Club, Resorts World Sentosa, the beaches on Sentosa, and all other Sentosa Island attractions. Cape Royale is also easily accessible to and from mainland Singapore, with travel time to and from Changi International Airport of only about 30 minutes.ย
Turquoise
Waterways as its front yard and golf course as its backyard
Turquoise is a 99-year leasehold low-density development with only 91 units. It has two 6-storey blocks with a basement carpark andย full recreational facilities.ย
Turquoise is close to VivoCity – Singapore’s largest lifestyle destination, and Harbourfront MRT station. Mount Faber Park is also a short car ride away.
Seascape
A serene coastal enclave one can call home
Ho Bee Land and 101 Properties develop Seascape. It is located in the southernmost part of Sentosa Cove, and every unit has unblocked stunning sea views.ย
This development consists of two 8-storey blocks with spacious and luxuriously appointed 3-bedroom and 4-bedroom residential apartments and a basement carpark.
There is a forest pool and sky pool with spa seats for those who enjoy swimming, steam rooms, and a clubhouse.
The Residences At W Singapore Sentosa Cove
The hottest entertainment spots and F&B outlets at your doorstep
The Residences At W Sentosa Cove is a 99-year leasehold condominium project located along Ocean Way, 098367, in District 04. The project comprises 228 residential units spread across a stretch of six-storey apartment blocks. Units are available in a range of highly spacious and elegantly designed 2 to 4-bedroom apartments with relaxing views overlooking the waterfront and the sea.
It offers convenient access to services within the comfort of your neighborhood. Additionally, The Residences offers a top-of-the-line series of facilities, including a private clubhouse, gymnasium, swimming pool, jacuzzi, barbeque pits, lounge, meeting room, sauna, and more. The compound is gated and monitored by 24-hour security.
The Oceanfront @ Sentosa Cove
Experience the luxury of space in an exquisite seafront home
The Oceanfront@ Sentosa Cove is a condominium project located in Ocean Drive, District 4. This apartment project was completed in 2010.ย
A stunning architectural icon that boasts the highest views in Sentosa Cove, The Oceanfront sets a new benchmark in luxury seafront living. Delight in the freedom of space when you choose from among the 264 exquisite sky villas, sky suites, villas, and 2-, 3- & 4-bedroom apartments.
Each impeccably designed unit has its private lift lobby and full-height windows in the living and dining areas, offering a panoramic vista of the sea, marina, or lush landscaping. Strategically located just minutes away from Sentosa Cove’s bustling Quayside Village, residents will enjoy a kaleidoscope of leisure facilities offering fine dining. high-end shopping and the nautical pleasures of ONE 15, one of Asia’s finest marina clubs.
The Oceanfront@ Sentosa Cove is a seafront lifestyle reserved for the privileged few.ย
