Luxury Condos at Turquoise, Sentosa Cove for $23M
The prestigious Turquoise condo, consisting of 91 luxury units situated on the scenic waterway of Sentosa Cove, is now offering three penthouses for sale at a staggering cost of $23 million.The largest of these penthouses, a 7,987 sq ft duplex with 5 bedrooms, is also the largest among the 10 penthouses situated at this 99-year leasehold waterfront condominium. The unit boasts a kitchen, living area, and wine cellar, and also features 4 ensuite bedrooms, 2 utility rooms, and a balcony on the lower level. The upper level is home to the master bedroom suite, which includes a private infinity pool, pool deck, and outdoor shower. The asking price for this extravagant unit is $12 million (equivalent to $1,502 psf). The unit that comes in a close second, at a price of $5.99 million (equivalent to $1,599 psf), is a 3,746 sq ft, four-bedroom penthouse. The upper level of this unit features a large open-air terrace with a built-in jacuzzi and an unobstructed view of Sandy Island and Sentosa’s southern waterfront. The third and final penthouse being offered for sale is a 3,111 sq ft, three-bedroom unit, which is priced at $5 million (or $1,607 psf). All three penthouses are located on the sixth floor and are accompanied by private lift lobbies, wet and dry kitchens, floor-to-ceiling windows, open balconies, and attached ensuites in each bedroom.Some of the condo’s facilities include a gym, barbeque pits, a swimming pool, a steam room, and 21 private berths for its residents. Developed by Ho Bee Land, a developer that has been active in Singapore’s property market for a long time, the 99-year leasehold Turquoise project was completed in 2010. The condo features 91 units divided among three six-storey blocks. The property also has a mix of 3- and 4-bedroom apartments, with the 3-bedders ranging from 2,088 sq ft to 2,573 sq ft and the 4-bedders ranging from 2,400 sq ft to 3,050 sq ft. The penthouses are available in the range of 3,111 sq ft to 3,764 sq ft, and sky villas of 6,900 sq ft to 7,987 sq ft in size.The developer is yet to release its largest penthouse, the 7,987 sq ft, five-bedroom duplex, which is presently listed for $12 million. According to the Urban Redevelopment Authority’s (URA) caveats, the second-biggest penthouse was purchased by a Korean national for $9.5 million in November 2007 (or the equivalent of $2,545 psf), when Turquoise was launched. The third and smallest penthouse measures 3,111 sq ft and was purchased by an African national. This penthouse was purchased in December 2007 for the price of just over $8 million (or $2,579 psf).If they’re sold at their asking prices, the 4-bedroom penthouse’s owner stands to suffer a loss of $3.5 million, equivalent to 36.8% below the purchase price. On the other hand, the owner of the 3-bedroom penthouse is set to lose $3 million, or 37.5% below the purchase price. The average unit price of three transactions recorded at Turquoise last year stood at $1,427 psf. The developer claims that the listed prices of its 16 remaining units ranged from $1,290 psf to $1,536 psf. The said units were being sold at discounts ranging from $500,000 to $750,000 each. At that time, the developer claimed that most of the offered units were located on lower floors.The current buyer profile at Turquoise is different from what it was at the time of launch. When the project was launched in late 2007, foreign buyers accounted for 59% of the sales. Singaporean buyers constituted just 25.6% of the buyers, followed by 12.8% of PRs. Just one unit was purchased by a corporate entity. After completion in 2010, 57.4% of the total transactions (equivalent to 39 units) were by Singaporean buyers, making them the largest buyer group within its resale domain. PRs accounted for 32.3% of transactions (or 22 units), while foreign buyers accounted for just 8.8% (or six units). The most recent resale transaction was made to a corporate entity. According to Cabasug, the three penthouse owners, who are both foreigners, have been holding on to their properties for the past 18 years, which is why they have been motivated to market them. She claims that their aim is to pursue other investment opportunities.Read Also: The Continuum sees new high of $3,091 psf’House in the Sky’ at Parkview Eclat: Three penthouses on offer for $108 millionWhile several buyers acquired Sentosa Cove homes when the project was first launched for investment purposes, the current buyers of properties in Sentosa are primarily looking to purchase such properties to use them as their primary residences, according to Cabasug. The current buyer profile at Turquoise reflects this pattern. At the time of launch, 59% of the buyers at Turquoise were foreign, while PRs accounted for 12.8% of purchases, and Singaporeans accounted for 25.6% of purchases. Even so, the current sitch is quite different, with Singaporeans accounting for 57.4% of the total transactions (or 39 units), PRs accounting for 32.3% (or 22 units), and the remaining 8.8% of transactions (or six units) being made by foreign nationals. The last unit was sold to a company.
I’m a short squeeze to take place?
Sentosa Cove, known as the “millionaire’s paradise” in Singapore, has managed to catch the attention of several property investors only recently. Despite being a security overhang that has been looming over Sentosa Cove’s real estate market for quite some time, there is some hope that the property market might actually see a recovery after all there are only a few hundred property investments in the project that have yet to be sold. Nevertheless, several million-dollar-plus properties are still up for grabs, and there has been no sales transaction for more than $10 million over the past few quarters.Although Sentosa Cove is known to be a high-end residential district, it hasn’t been able to hold up too well during the present real estate market sentiment. As per the Urban Redevelopment Authority (URA), only four non-landed homes in Sentosa Cove have been transacted over the previous quarter. Prices have dropped by approximately 100% for units sized between 2,000 sq ft and 2,500 sq ft but increased slightly for units that were sized lower than 1,500 sq ft. Due to the pandemic, Singapore’s real estate industry has been growing, and yet Sentosa Cove, an exclusive enclave, hasn’t been able to share in the spoils. There is some hope in the market, however, as a short squeeze is believed to be taking place within the Sentosa Cove property market. Read also: If co-living is the future, the OCBC and CapitaLand tie-up offers a glimpse of what’s to come
When purchasing a Singapore Condo, it is crucial to take into account the maintenance and management of the property. Condos typically come with maintenance fees that cover the maintenance and upkeep of common areas and facilities. While these fees may increase the overall cost of ownership, they also guarantee that the property remains in excellent condition and retains its value. To ensure a more passive investment, many investors choose to hire a property management company to handle the day-to-day management of their condos.
As to whether $23 million is a reasonable price for these Sentosa Cove units on sale is another matter. The 3,764 sq ft unit being sold for this price or $1,607 psf might be slightly overpriced as other 4-bedroom units sold at around $1,500 psf. Although some have stated that this could be a possible attempt to artificially inflate prices by creating demand in an attempt to encourage prospective buyers to enter the market, the prevailing economic conditions are far from ideal, and not many buyers are likely to respond positively to such a move. The prevailing market prices are anywhere between $1,300 psf and $1,500 psf for units that have a slightly larger floor area and are situated on low or mid floors.Some believe that the owner of the Turquoise unit priced at $5 million ($1,607 psf) is trying to cash in on a short squeeze. The 3,111 sq ft unit mentioned above was purchased for just above $8 million ($2,647 psf) back in December 2007. Some units that have been put up for sale have been touted as being available for over $3,500 psf, but whether the property will even fetch such a price is not known. Buyers would be better off looking at the current market rates and going for Sentosa Cove units priced around $1,500 psf because those are likely to be more realistic estimates. Even if the owner prices the unit at $2,600 psf, a realistic price that the seller would sell for would be around $2,300 psf as today’s market rates are around $1,500 psf. Hence, the maximum price that the property could be listed at is $9 million for the 3,111 sq ft unit. The minimum selling price that you could possibly get for the unit is $7 million, which is, however, much lower than what the owners are currently trying to offer.Read also: Resale units at D’Leedon in District 10 selling for $2,100 psfOn