SINGAPORE (THE BUSINESS TIMES) - After nine years in the rental market, luxury development Cape Royale at Sentosa Cove is now being launched for sale.
Joint developers IOI Properties and Ho Bee Land will start sale previews for the 99-year leasehold project on Tuesday (June 28), and begin bookings on July 6 with prices starting from $2,103 per square foot (psf).
Units at Cape Royale have been rented out since it was completed in 2013, when the developers felt prices were weak following two rounds of property cooling measures that year. However, the upcoming launch this week might reflect changing sentiment.
This will be the first large-scale Sentosa Cove condominium launch in over a decade, noted ERA Realty's head of research and consultancy Nicholas Mak.
The latest developments launched, Seascape and Residences at W, were sold at median prices of $2,680 psf and $2,816 psf respectively during their launch in March 2010.
According to Mr Mak, the condo rental market at Sentosa Cove has been on an uptrend since 2021. In the first quarter of this year, median rental rates for Sentosa condos grew 5.2 per cent quarter on quarter and 15.1 year on year to $4.43 psf.
He expects rental demand in the area to remain bullish as Singapore's relaxed border restrictions have allowed more expatriates to return to the city state.
Meanwhile, the number of the condo rental contracts decreased by 11.2 per cent quarter on quarter to 165 contracts in the first quarter, as the volume of vacant units available for rent is falling. This means rents in the area could continue their climb.
That said, Mr Mak added that Sentosa condo prices have also been recovering after the dip that came with cooling measures in 2018. He noted that in 2021, the median price of condos at Sentosa Cove gained 7.5 per cent year on year. This is lower than the 10.6 per cent annual growth of Singapore's overall residential market, but higher than the 3.8 per cent rise seen in the Core Central Region.
In the first five months of 2022, Sentosa Cove condo prices have increased 8.6 per cent to $1,688 psf, the highest psf price in the area since 2012.
Cape Royale's upcoming launch will have indicative prices of between $2,103 psf and $2,186 psf for three-bedroom units, which range from 1,679 sq ft to 1,905 sq ft. Four-bedders spanning 2,508 sq ft to 2,530 sq ft will be priced at about $2,211 psf to $2,268 psf.
According to Ho Bee, about 95 per cent of Cape Royale's 302 units are currently rented out and will be sold with tenancy.
The most recent property launches this year have met with robust demand. In May, City Developments and MCL Land's Piccadilly Grand sold 77 per cent of its 407 units on launch weekend at an average $2,150 psf. Liv @ MB, developed by Bukit Sembawang, similarly sold over 75 per cent of its 298 units at an average price of $2,387 psf at launch.
Cape Royale will be one of two sizeable 99-year leasehold developments slated to come to market next month, the second being AMO Residence at Ang Mo Kio Avenue 1.
Developed by United Venture Development - a joint venture between UOL Group, Kheng Leong Company and Singapore Land Group - AMO Residence will house 372 units spread across a pair of 25-storey blocks.
Its two-bedroom apartments are between 614 sq ft and 743 sq ft, three-bedders range from 958 sq ft to 1,136 sq ft. Four- and five-bedroom units span 1,292 sq ft and 1,475 sq ft respectively, while its three units of five-bedroom penthouse apartments range from 2,293 sq ft to 2,497 sq ft.
According to property agents, the development's median price is estimated to be $2,200 psf. Previews for AMO Residence are expected to take place from July 9 to 19, with sales launching on July 23.