SINGAPORE: Nearly two-thirds of Sentosa Cove properties have changed hands at a loss in the last three years, while resale gains on profitable transactions shrank by some 60%, research by analysts shows.
Landed homes seem to fare slightly better than condominiums, with roughly half of landed resale deals closing above water since 2023.
Sentosa is the only place in Singapore where foreigners can buy a landed property, subject to approval from the government.
Capital values of the 99-year-leasehold homes built on Sentosa have long trailed those of properties on the mainland.
Several factors, from accessibility to pricing, explain its niche demand.
But since 2023, steep increases in stamp duties for foreign buyers have curtailed demand for the luxury homes on the island, heavily promoted from the start as a playground for the wealthy.
Data compiled by Mogul.sg, covering landed and non-landed homes, showed that 64.5% of resale transactions between May 2023 and June 2026 were unprofitable.
This was up from 62.8% between March 2020 and April 2023.
While the average loss on loss-making transactions narrowed to S$1.28mil from S$1.56mil, gross gains on profitable resales fell by about 62% to S$655,590 from S$1.75mil, noted Mogul.sg.
The figures exclude stamp duties, property tax, legal fees and agent commissions.
“Overall, things are not looking good for the property owners of Sentosa Cove,” said Nicholas Mak, chief research officer at Mogul.sg.
Separate analyses by property consultancies Cushman & Wakefield and Newmark also found that most resale transactions in the enclave were unprofitable. — The Straits Times/ANN
