Rentals making gentle waves at Sentosa Cove

Rentals making gentle waves at Sentosa Cove

They could hold firm despite gloom elsewhere and offer decent yields


(SINGAPORE) Close to 300 homes at Sentosa Cove, including 200 condominium units, have received Temporary Occupation Permit (TOP) and the exclusive enclave is starting to bustle.


DTZ Debenham Tie Leung, which is the property manager of the 200-unit The Berth by the Cove says that the development is now about 70 per cent tenanted.


It added that the remaining units of the fully-sold development are owner-occupied, some of which are weekend homes or holiday homes for foreigners.


Other developments that have received TOP include The Berthside, Ocean 8, The Villas @ Sentosa Cove, Coral Island and North Cove.


Expected to come onto the leasing market next is the 116-unit The Azure, which is also fully sold.


And the popularity of The Berth by the Cove with the leasing market bodes well for the remaining 2,200 homes that are still being constructed.


DTZ senior director (research) Chua Chor Hoon said that the supply of new homes in Sentosa Cove is still ‘limited’ compared to the rest of Singapore and the units have ‘the unique feature of close proximity to the sea’.


Saying that the limited supply of units in Sentosa Cove will limit any downward pressure on rentals, Ms Chua added: ‘Rental prospects are likely to be better.’


This upbeat outlook for Sentosa Cove is particularly pertinent at a time when new housing supply is expected to flood the rental market by next year.


In a recent report, DTZ noted that in general, rentals would come under pressure between 2009 and 2011, not just from new supply but from the sub-sale market as well as it is unlikely that speculators will want to hold units for low rental income.


DTZ said that based on its basket of non-landed properties in the prime district (excluding luxury properties) average monthly rents are currently still holding steady at $4.90 psf per month.


While DTZ did not reveal rentals at The Berth by the Cove, a check with SISV-Realink shows that the rental for a unit there contracted for $19,500 per month in May.


Colliers International also said it believes median rentals could be around $6 psf per month.


Colliers director (research and advisory) Tay Huey Ying added that based on the average launch price of The Berth by the Cove of about $860 psf in 2004/2005, investors who bought units at this price could now be enjoying a net rental yield of about 5.5 per cent.


Those that bought units from the secondary market later when the price rose to about $1,500 psf will be looking at a net rental yield of 3.5 per cent.


‘Nevertheless, these investors would still be enjoying a higher net rental return compared to those who invested in a freehold luxury apartment on the main island of Singapore in recent times since the latter are generating average net rental returns estimated to be in the region of 2.3 per cent,’ added Ms Tay.


In time over 1,700 condominiums will be completed. Savills Singapore director (marketing and business development) Ku Swee Yong believes that buyers for most of these units will be investors, suggesting that a majority will be put up for lease.


Still, he said that there is a niche market for this type of waterfront home. ‘We had an expat client who was looking to rent and after showing him a few options, he chose The Berth because he already has a yacht,’ reveals Mr Ku.


Interestingly, Mr Ku says the advent of the integrated resort on Sentosa may not necessarily guarantee a pool of tenants. ‘Not everyone will want to live so close to work,’ he added.


What he does believe is crucial to the success of Sentosa Cove as an exclusive enclave is the provision of high end amenities. He added: ‘Once these are completed, we believe Sentosa Cove rents could demand a premium over Orchard Road.’


Source: Business Times

Sentosa rents soar

Sentosa rents soar


Construction not putting tenants off


SENTOSA Cove is slowly, but surely, attracting high-end tenants with the completion of an estimated 300 homes, including the 200-unit The Berth by the Cove condominium.


Despite ugly construction sites dotting many parts of Sentosa, the first luxury condo units and landed properties have drawn rents comparable to, if not higher than those in prime districts on the mainland, including Nassim Park and Grange Residences.


Colliers International has just completed its first rental survey of Sentosa Cove and says two-bedroom condos are fetching an average $5,350 a month, or $4.61 per square foot (psf).


Larger, four-bedroom units have rented for an average $10,625, which also equates to $4.61psf. However, one rented for $12,250.


As for landed homes, terrace houses ranging in size from 2,600 to 3,600 square feet have let for an average $15,333, or $5.19psf, while the first luxury bungalows ranging in size from 2,530 to 4,983 sq ft have been let for an average $24,000. The highest rental to date is $30,000.


“This is encouraging, given that so much construction is going on,” said Tay Huey Ying, Colliers director of research and advisory. “When fully-developed, it should be even more appealing to potential tenants.”


The idea of developing the 117-hectare cove into a waterfront enclave was first mooted in the ’80s. However, the first land parcel was only sold to the private sector in end-2003. Five years on, temporary occupation permits have been granted to just the first five small developments completed, with Ho Bee Group’ 200-unit The Berth being by far the largest.


More is to come, with land already sold capable of accommodating over 2,000 condo units and 400 bungalows or terrace homes.


Colliers said investors who bought units in The Berth at the end of 2004 or early 2005 and have held onto them are today enjoying attractive net rental yields of 5.5 per cent. Purchase prices have since surged. As such, Colliers said those who entered the market later in 2007 now have to contend with lower yields averaging at 3.5 per cent.


Prices of non-landed homes have shot up from an initial launch price of $785 per sq ft in November 2004 for The Berth to current $2,800psf for Lippo Group’s The Marina Collection.


Source: Today Newspaper

Leasing market in Sentosa Cove starting to pick up

Leasing market in Sentosa Cove starting to pick up


SINGAPORE : The leasing market in Sentosa Cove is starting to pick up, as more units are ready for occupation, according to property consultants Colliers International.


With some 300 units at Sentosa Cove having temporary occupation permits, Colliers said the leasing market could be starting to take shape.


Numbers from the Urban Redevelopment Authority showed that some 51 leasing contracts were recorded for homes there between January last year and April 2008. Forty-six of those went to The Berth by the Cove.


Some 99.6 per cent of land parcels for sale in Sentosa Cove has been taken up by private developers and individuals – in all yielding more than 2,000 condominium units, and 400 bungalows and terrace houses.


Contracted monthly gross rents are believed to range from S$4,700 for a two-bedroom unit to as high as S$12,250 for a four-bedroom unit in a condominium development.


Landed homes are believed to command between S$12,000 and S$30,000 per unit. – CNA/ms


Source: Channel NewsAsia

Central, prime condo take-up rates outpace other areas

Central, prime condo take-up rates outpace other areas

Softer H1 prices in these areas cited, pointing to strong latent demand: JLL


(SINGAPORE) Softening condo and private apartment prices in the first six months of this year in the prime and central districts – the latter of which covers the financial district, Harbourfront area and Sentosa Cove – have been accompanied by a push in demand in these locations.


This, according to a study by Jones Lang LaSalle, has been reflected in the higher primary market take-up rates for properties in these locations.


‘This suggests the presence of a strong latent market where potential buyers are waiting at the sidelines, eagerly buying up properties when the price is right,’ Jones Lang LaSalle’s head of research (Southeast Asia) Chua Yang Liang says.


JLL measured the take-up rate as the ratio of the number of non-landed private homes sold by developers to such homes launched by developers. It then compared these take-up rates against the average resale prices in four locations on the island – prime (districts 9, 10 and 11), central (districts 1-4), east coast (15 and 16) and mass market (all other districts).


The prime and central districts achieved relatively higher take-up rates of 87 per cent and 250 per cent respectively during H1 2008 compared with take-up rates of 67 per cent for east coast and 66 per cent for mass-market during the same period.


The prime and central districts also saw weaker price movement. The average resale price for prime districts in H1 2008 was 12 per cent higher than in H1 2007 but down 3 per cent from the figure for full-year 2007. In the central districts, the H1 2008 average resale price represented an improvement of 9 per cent year-on-year but was flat against the full-year 2007 figure.


In the east coast, the H1 2008 average resale price raced 20 per cent ahead against a year ago while mass-market locations topped the chart with a 25 per cent year-on-year price gain.


‘The conservative attitude of buyers coupled with cautious outlook by developers will continue to moderate market performance in terms of take-up rates. Buyers are generally sensitive and cautious about prices.


‘Developers are more likely to discount prices to maintain the demand, either through direct discounts of between 5 and 10 per cent on selling prices as we’re already seeing, or absorption of other costs like stamp duty and furnishing vouchers,’ Dr Chua reckons.


JLL’s study also showed that amidst the overall quieter market the number of non-landed private homes bought by those living in HDB flats as well as those with private addresses fell in the first five months of this year.


However, there was an increase in HDB upgraders’ share of total non-landed private homes bought (in both primary and secondary markets) during the first five months of this year in all locations.


This was the case even in the prime districts, where buyers with HDB addresses made up 16 per cent share of total private apartments/condos bought in January to May 2008. This was higher than a 10 per cent share for the whole of last year in this location.


Most of the HDB upgraders who bought a prime district property in the first five months of 2008 picked up a unit in District 9, mainly at new project launches like Wilkie 80 and Mount Sophia Suites, according to JLL.


HDB upgraders accounted for 33 per cent of non-landed homes sold in the east coast in the first five months of 2008, up significantly from a 21 per cent share in full-year 2007.


In the mass-market districts – the traditional haunt of upgraders buying private property – their share was 39 per cent in Jan-May 2008, up from 32 per cent in 2007. In the central districts, the upgrader share edged up from 16 per cent last year to 19 per cent in the first five months.


‘Although prices in 2007 have moved past the average-income buyers’ affordability, the current softer prices as well as stronger economic performance in 2007 have provided the impetus for many HDB upgraders in all locations,’ Dr Chua notes.


‘As HDB resale flat prices are likely to remain strong given limited supply, upgraders who benefit from the gain in the resale market are likely to enter into the private market. We reckon the percentage of upgraders is likely to grow by year-end if developers and sellers keep prices at realistic levels,’ he added.


Source: Business Times

YTL’s Sentosa villas to start from $12m each

YTL’s Sentosa villas to start from $12m each

Sandy Island villas are being designed by Italian architect Claudio Silvestrin


MALAYSIA‘S YTL Corp will launch later this year 18 luxury waterfront villas at Sandy Island on Sentosa Cove and prices are expected to start from $12 million for a villa or at least $2,000 per square foot (psf) of land area, BT understands.


YTL’s spokeswoman declined to comment on the planned pricing, but confirmed that the plan is to launch the project later this year.


The development will nestle within a tropical rainforest and boast upscale finishes and fixtures. It is being designed by renowned Italian architect Claudio Silvestrin, famous for designing Giorgio Armani boutiques worldwide as well as the Museum of Contemporary Art in Turin.


YTL has also appointed celebrated Australian landscape architect Jamie Durie for Sandy Island.


Each two-storey waterfront villa will have a basement and a terrace floor, and feature a double-volume living room facing a private berth. ‘Each home will have a private car lift, a passenger lift, kitchen and wardrobes personally selected by Mr Silvestrin,’ YTL’s spokeswoman said.


The villas will be built on 99-year leasehold land plots ranging from about 6,000 sq ft to 10,000 sq ft each and will have four or five bedrooms with en-suite bathrooms, a pool and timber patio set within a waterfront garden designed by Mr Durie. Sandy Island will feature more than 30 trees transplanted from the Resorts World integrated resort site.


Sandy Island is located in Sentosa Cove’s Southern Precinct. YTL also has another villa development in the waterfront housing district’s Northern Precinct on the Lakefront Collection site abutting Serapong Lake. This project is expected to comprise more than 10 villas which will boast views of Serapong Golf Course. The project is still in the design development stage and could be released next year.


On the mainland, YTL is looking at different proposals by world-renowned architects to develop an ‘iconic lifestyle quality development’ on the Westwood Apartments site at Orchard Boulevard.


YTL inked a deal in November last year to buy the 62,179-sq-ft freehold property for $435 million, which worked out to $2,525 psf of potential gross floor area inclusive of an estimated $4.6 million development charge at the time. Westwood Apartments’ collective sale was approved by the Strata Titles Board earlier this week. The deal was brokered by Savills Singapore. Law group Rodyk & Davidson acted for the majority owners.


Luxurious: Artist’s impression of one of the villas, which will be built on 99-year leasehold land plots

Source: Business Times