East Coast Park which is located near the condominiums (Picture: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - Costa Del Sol and The Bayshore are located right beside each other in Bedok planning area and within walking distance to East Coast Park. The leasehold developments are also next to the upcoming Bayshore MRT Station on the Thomson-East Coast Line (TEL), which is slated to open in 2024. Both are also large condominium developments with about 1,000 units.
Source: EdgeProp LandLens
A notable difference between the two developments is their TOP date. Costa Del Sol was completed in 2004, thus making it younger than The Bayshore by eight years.
Due to the many similarities between the two condominiums, one would assume that they share similar average prices. However, the average resale price of Costa Del Sol ($1,541 psf) is about 40% higher than that of The Bayshore ($1,105 psf). Average prices also grew at a faster pace of 26% for Costa Del Sol since 2012, compared to 17% for The Bayshore. We will examine the two developments and discover the reasons for their large disparity in price.
A large proportion of the population in Bedok planning area are owner-occupiers (87%) and only 11% are tenants. This is in line with the data for the whole of Singapore, where 87.9% of the population own their home and 12.1% of the population rent.
The bulk of the residents in Bedok are middle-aged adults and children aged between 10 and 19 years. As such, the majority of them are likely to be families comprising a couple and their children.
In view of this, Costa Del Sol will be popular with owner-occupiers because the bulk (56.5%) of its units are 1,301 to 1,500 sq ft, which are more suitable for families. Additionally, Costa Del Sol does not have any one-bedroom units or units below 900 sq ft.
On the other hand, 50.3% of the units in The Bayshore are between 900 and 1,100 sq ft. Of these, an estimated 24 units are one-bedders.
Units at The Bayshore have an unusual floor plan – many of the rooms are not of a regular square or rectangular shape. The unusual layout makes it challenging to use ready-made furniture, so owners will have to custom-build their furniture. The odd corners could end up being under-utilised and hence make the unit feel even smaller. The irregular floor plan could dampen some buyers’ interest in The Bayshore.
On the flip side, the units in Costa Del Sol have a regular floor plan where all rooms are a simple square or rectangle, which allows residents to use the space efficiently. The regular floor plan also makes it easy for residents to arrange their ready-made furniture.
The blocks in Costa Del Sol are arranged in two curved lines with the common facilities in the middle. The layout allows all units to have at least one side of unblocked view, which gives each unit a spacious feel. The whole development does not feel crowded despite having 906 units.
The Bayshore has several units clustered together in a block, which makes the development feel more cramped. The smaller land area for The Bayshore (414,522 sq ft) compared to Costa Del Sol (425,555 sq ft) does not help matters.
A reason for the popularity of large condominium developments is their numerous facilities. Costa Del Sol and The Bayshore certainly deliver on this front. Both developments have all the usual facilities such as multiple tennis courts, different types of pools, barbecue pits, a gym, a playground and a clubhouse. Golf enthusiasts will enjoy the putting green in both developments.
Additionally, residents of Costa Del Sol have a family clinic, a minimart, a laundromat and a small bistro within their development. This added convenience certainly enhances the appeal of Costa Del Sol.
The clever site layout of Costa Del Sol gives most units a clear view of East Coast Park, especially units in the higher floors of the blocks fronting the park. Additionally, Costa Del Sol has a side-gate that opens up to an underpass that is directly linked to the beach. The underpass is a further walk for The Bayshore.
Excellent unblocked sea view, spacious site layout plus easy access to East Coast Park have contributed to the beach resort vibes of Costa Del Sol and hence have given a boost to its demand and resale price.
The Bayshore has limited sea views because it is located behind Costa Del Sol whose blocks are all 30 storeys high. The Bayshore does not have any blocks that are above 30 storeys high, which could explain its lower price and slower price growth compared to its immediate neighbour.
However, the unblocked sea view currently enjoyed by the residents of Costa Del Sol may disappear with the reclamation of Long Island along a 15km stretch from East Coast Park to Marina Bay. When completed, Long Island is expected to provide coastal protection against rising sea levels. Housing, a reservoir and recreational facilities are expected to be built on the reclaimed land. However, URA has yet to announce detailed plans or timeline for Long Island.
Costa Del Sol received TOP in 2004, making the development younger than The Bayshore by eight years. However, the land tenure for Costa Del Sol started in 1997 – only four years after The Bayshore. Buyers should take note of this, especially if they are buying for their own long-term occupation.
The Bayshore has 19 unprofitable transactions, more than the 13 unprofitable transactions for Costa Del Sol. The Bayshore also has five transactions with losses of at least $100,000, while Costa Del Sol has only three such transactions.
However, the biggest loss of $250,000 comes from a transaction for Costa Del Sol, which is due to the seller overpaying during purchase. The seller paid $1,436 psf for a 1,776 sq ft unit in 2012 when average resale price for Costa Del Sol was $1,249 psf. Average resale prices for leasehold condominiums in Bedok and Singapore were $950 psf and $1,032 psf respectively.
The seller sold the ground-floor unit for $1,295 psf in 2018. While the sale price was above the average resale price for Costa Del Sol ($1,285 psf) as well as leasehold condominiums in Bedok ($1,080 psf) and Singapore ($1,194 psf), it was still $141 psf below purchase price.
The largest loss for The Bayshore was for a 1,001 sq ft ground floor unit that was purchased in 2013 and sold in 2018. Unlike the seller of Costal Del Sol, the seller of The Bayshore did not overpay, instead he sold way below market price and purchase price.
The seller of The Bayshore paid $1,099 psf in 2013, which is close to the average resale price for the development of $1,024 psf. However, the seller sold the unit at $879 psf in 2018 when resale units in The Bayshore were fetching $964 psf, thus incurring a loss of $220,000.
The potential tenant pool for Costa Del Sol and The Bayshore includes expatriates working in the nearby Changi Business Park and Changi Airport. Costa Del Sol is attracting a higher average monthly rent of $3.60 psf, which is $0.70 psf (24.1%) higher than that for The Bayshore ($2.90 psf).
Despite many similarities, Costa Del Sol’s prices are outperforming The Bayshore’s due to various differences. Costa Del Sol has larger units which may better meet the requirements of owner-occupiers, who make up most of the residents in Bedok.
Additionally, the units of Costa Del Sol are of a regular rectangular shape without odd corners unlike The Bayshore, making living and space-making a lot more flexible. The linear site layout of Costa Del Sol also allows for maximum unblocked sea view for the majority of the units, which most likely have contributed to the price differences. However, there is a possibility the sea view may be blocked after the completion of housing on the reclaimed Long Island.
The easy access to East Coast Park, albeit a longer walk for residents of The Bayshore, allows residents from both developments to enjoy a beach resort lifestyle while the upcoming Bayshore MRT Station on TEL connects their idyllic haven to the bustling city.
There is a large preschool across the road from Costa Del Sol which brings much convenience to parents. Other nearby schools include Temasek Primary School, Temasek Secondary School and Temasek Junior College.
Source: EdgeProp LandLens
While the developments are not near any major malls, Parkway Parade and i12 Katong are a short drive away and East Coast Lagoon Food Village is within walking distance.
Costa Del Sol enjoys a slight edge over The Bayshore because it is comparatively younger, has a number of shops within the development and has easier access to the beach. The regular floor plan and clever site layout of Costa Del Sol have also given a boost to its price and rent.
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