Cape Royale at Sentosa Cove will begin previews on Jun 28 and bookings on July 6 with prices starting from $2,103 psf
AFTER 9 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 (Jun 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 2 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 condo launch in over a decade, noted Nicholas Mak, ERA Realty’s head of research and consultancy. The latest developments launched, Seascape and Residences at W, were sold at median prices of S$2,680 psf and S$2,816 psf respectively during their launch in March 2010.
According to Mak, the condo rental market in Sentosa Cove has been on an uptrend since 2021. In Q1 this year, median rental rates for Sentosa condos grew 5.2 per cent quarter on quarter and 15.1 year on year to S$4.43 psf.
He expects rental demand in the area to remain bullish, as Singapore’s relaxed border restrictions have allowed more expats to return to the citystate. Meanwhile, the number of the condo rental contracts decreased by 11.2 per cent quarter on quarter to 165 contracts in Q1, as the volume of vacant units available for rent is falling. This means rents in the area could continue their climb.
That said, 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 condominiums 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 5 months of 2022, Sentosa Cove condo prices have increased 8.6 per cent to S$1,688 psf, the highest psf price in the area since 2012.
Cape Royale’s upcoming launch will have indicative prices of between S$2,103 psf and S$2,186 psf for 3-bedroom units, which range from 1,679 square feet (sq ft) to 1,905 sq ft. This translates to about S$3.6 million to S$3.7 million. 4-bedders spanning 2,508 sq ft to 2,530 sq ft will be priced at about S$2,211 psf to S$2,268 psf or a quantum of between S$5.5 million to S$5.7 million.
According to a 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 S$2,150 psf. Liv @ MB, developed by Bukit Sembawang, similarly sold over 75 per cent of its 298 units, at an average price of S$2,387 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 2-bedroom apartments are between 614 sq ft and 743 sq ft, 3-bedders range from 958 sq ft to 1,136 sq ft. 4- and 5-bedroom units span 1,292 sq ft and 1,475 sq ft respectively, while its 3 units of 5-bedroom penthouse apartments range from 2,293 to 2,497 sq ft.
According to property agents, the development’s median price is estimated to be around S$2,200 psf. Previews for AMO Residence are expected to take place from July 9th to 19th, with sales launching on July 23.