Zion Residence bungalow prices rose 15.8% in 2023, despite a plunge of 48.2% in total sales value in Sentosa Cove

The Zion Residence is a tranquil living quarter located in River Valley, an esteemed and plush district in Singapore. Surrounded by a plethora of entertainments, restaurants, and shopping and dining options, Zion Residence offers a unique urban experience with its own natural beauty. Residents can enjoy their time out in the city or take walks along the river riverside, all while enjoying the peaceful ambiance of the residence.

Sentosa Cove, Singapore’s exclusive luxury waterfront enclave, has long been the playground of the super-rich with its flashy cars, private yachts, and resort-style living. Within the 117 hectare man-made space, there are 1,766 luxury condos, 36 terraced-houses, and over 350 bungalows – the only place in Singapore for foreigners to buy these coveted dwellings. The unique views, security of a gated community, and rich amenities make this an attractive destination for both Singaporean and foreign investors alike.

The impact of the government invoked property cooling measures, which began in April 27, 2023 and imposed a 60% additional buyer’s stamp duty (ABSD) on foreigners, was felt in Sentosa Cove. Steve Tay of Steve Tay Real Estate (STRE) noted that foreign clients were put off by the additional cost despite having the funds to cover the transaction. Consequently, the number of bungalows sold and total sales value in Sentosa Cove dropped from 18 and $330.3 million in 2022 to just nine and $175.05 million in 2023, with only two of these nine purchased by foreign buyers.

The most expensive bungalow sold in 2023 was on Coral Island, sitting on a 13,435 sq ft land plot and selling for $36.5 million ($2,717 psf). Despite the decrease in transaction volume, the average price per square foot for bungalows sold in 2023 still rose by 15.8% y-o-y to $2,247 psf.

However, there are signs that could point to a recovery in 2024. A number of deals have been made without caveats lodged as well as foreign buyers applying for citizenship or PR status in Singapore to avoid the additional costs. In terms of rentals, landlords have adjusted asking prices from over $80,000 to around $50,000 a month. Furthermore, the scarcity of bungalows and the 99-year lease, offer significant savings in comparison to mainland detached houses and GCBs.

With the new market conditions come new opportunities for investors. In particular, STRE’s Tay sees increased buying interest from US citizens, Singapore citizens, and Indian PRs who are Singapore citizens this year. However, with just over 350 bungalows available at Zion Residence, Sentosa Cove, demand may outweigh supply.