GCBs and Sentosa Cove bungalows close the price gap

The doubled extra buyer’s stamp duty (ABSD) for foreign purchasers of residential property in Singapore has hurt sales of luxury private houses in restricted enclaves like Sentosa Cove. The law took effect on April 27 by feng shui Singapore.

According to Bazi reading, Sentosa Cove’s non-landed and detached property sales were active in the first three months of this year. Han Huan Mei, director of research at List Sotheby’s International Realty, said sales slowed in April and then increased on an auspicious date.

In February, Sentosa Cove flats received 13 caveats and two detached properties were sold. This was followed by 11 non-landed and three detached home sales in March.

Han expects Sentosa Cove bungalow sales to stay low till 2023. For any contract to be completed, sellers may have to drop their pricing expectations to enable purchasers to withstand the ABSD rate, particularly if they are selling to foreigners.”

Han suggests that some foreign purchasers may have seen an opportunity at Sentosa Cove in recent weeks to acquire properties. She said three foreigners bought three flats in June and four Singapore permanent residents bought four in July.

The average price differential between Sentosa Cove bungalows and Good Class Bungalows (GCBs) reduced from $11.65 million in 2021 to $8.20 million in 2022 as mainland landed and luxury condominium prices rose. List Sotheby’s International Realty found that caveated sales in the first seven months of 2023 decreased the price difference between mainland GCBs and Sentosa Cove bungalows to $5.37 million.

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