Chinese property buyers
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Is Sentosa the hottest market for Chinese property buyers in Singapore?

A deadbeat market in the last decade, Sentosa is now home to many foreign buyers, especially Chinese property buyers from Fujian province. Only recently, a Fuji buyer bought Sentosa Cove Villa at S$39.3 million. The rare sea facing Villa stretches along a vast land area of 19,550 sq ft costing S$2,012 per sq ft for the buyer. Is it a good investment for the Chinese property buyer? What were the attractions of this Villa? Was $39.3 million a good price? Let’s find out!

Chinese property buyers

What did the Chinese property buyer see in the Villa?

  • Sentosa Cove was one of the ten sea facing villas compared to its large land size 
  • 83 year old balance remains for the 99-year leasehold property
  • It is the only place where foreigners can get approval to buy a landed home 

Is S$39.3 million a good price for a villa in Sentosa?

This is a question you must ponder if you are looking to buy a property in Sentosa. The usual range of villas in Sentosa is S$1,500 psf. But this villa costs an estimated S$2,012. What is the reason for this premium price?

Well, where most villas in Sentosa are around 7,000-9,000 sq. ft., this villa has a humongous land area of 19,550 sq ft. On top of it, this villa is sea facing which is extremely rare for such a large size of house in Sentosa. These rare qualities are worth the premium price charged for this villa. 

Of course, this also depends on your personal budget and affordability. It seems the Chinese property buyer who bought the property found it worth its value. Especially since he got to own a landed home in Singapore, which is not possible for foreigners other than Sentosa.

What do we know about this Chinese property buyer?

Sentosa Cove’s new owner is Su Baolin who comes from Xiamen City of Fujian Province. He is a Cambodian citizen and a businessman who has invested in two Singapore companies previously. His previous investments were in software developing and ecommerce companies. This time around, he bought the Sentosa Cova Villa for his own use as a residence.

He bought the Villa from Lim Chin Huat who was the former owner of the house. He is a seasoned property investor as well as having a vegetable supply business. This seller has experience in restaurant and wine distribution ventures. 

Are other Chinese property buyers looking to buy property in Sentosa?

As mentioned earlier, the pick in Sentosa properties has been seen only recently, especially since 2020. The reasonable price range and big houses are drawing many foreign buyers to buy properties here. 

Specifically from Xiamen City, a lot of Fujian buyers are showing interest in owning properties here. Since 2017, a lot of them have acquired high end condominium units from developers in the Sentosa island. They are also venturing into the conservation shophouse market and strata offices to spread out their business in Singapore city.

Apart from Chinese property buyers, foreigners from Malaysia, Indonesia and the US are also scouting the island for a purchase. Local home buyers are also showing strong interest in the Sentosa Cove area. Most of these potential buyers are in their 40s – 60s intending to live in the beautiful bungalows of this area.

What is the price range and demand of Sentosa Cove properties?

URA data shows that in the first quarter of 2020, 4 bungalows of Sentosa Cove were sold at a total of S$64.8 million. In the period after that till 2021, another 5 bungalows have been sold in this area amounting to a total transaction amount to S$96 million.

  • There is a limited supply of only 350 bungalows in Sentosa Cove
  • A 7,000 – 9,000 sq ft bungalow with 99 leasehold years costs about S$12-S$15 million.
  • In March, a 9,042 sq. ft. bungalow by Kasara development was sold at S$14.7 million. 
  • This bungalow had a lake view and faced the Serapong Golf Course of Sentosa Cove.
  • The Indonesian buyer who bought the house holds a Singapore PR.

Most of the houses are in the range of S$1,500 psf, making it an affordable buy for both local and foreign buyers. That is why transactions in this area have been progressively increasing despite the restrictions and economic volatility due to Covid. Besides, buying a property here is convenient for foreigners. The houses in Sentosa are bigger, affordable and offer flexibility to foreigners that other areas cannot offer. 

In Singapore, foreigners cannot buy freehold land. Sentosa is the only area where they can buy landed homes with 99 leasehold years. So, ultra high net worths (especially foreign buyers) with a budget of S$30 million or more are keen to buy properties here. 

Buying a big villa in Sentosa is much more affordable for them than buying a condo in the city centre. That is why property analysts expect that Sentosa Cove villa’s demand will outperform in 2021 with at least 15 to 20 more bungalow deals in the line. This is because

More at Buyer from Fujian pays S$39.3m for Sentosa Cove villa, Business Times

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