Is it a Good Deal?: $1,237 psf for a two-storey penthouse in Sentosa

By Elizabeth Choong

/ EdgeProp Singapore |

June 26, 2024 12:14 PM SGT

The Berth By The Cove has 174 profitable and 31 unprofitable transactions. (Photo: Samuel Isaac Chua/EdgeProp Singapore)

SINGAPORE (EDGEPROP) – A five-bedroom penthouse in The Berth By The Cove was sold earlier this month, resulting in a loss of approximately $780,000. The 3,315-sq ft unit was sold for $1,237 psf, after the seller purchased it in November 2014 for $1,472 psf.

At the time of writing, The Berth By The Cove had 174 profitable and 31 unprofitable transactions since its launch in November 2004. Profits ranged from approximately $76,000 to $3.32 million, while losses ranged from approximately $2,200 to $2.39 million.

We used our analytics tool, "Is it a Good Deal?", to determine whether the aforementioned unprofitable sale transaction for The Berth By The Cove constituted a bargain for the buyer.

Located in an exclusive residential enclave

The Berth By The Cove is a 99-year leasehold development located along Ocean Drive in Sentosa. The condo obtained its temporary occupation permit (TOP) in 2006. The 200-unit development comprises two- to five-bedroom units that range in size from 1,012 sq ft to 6,028 sq ft.

As the condo is located on Sentosa, there are not many amenities within walking distance other than Quayside Isle and W Singapore Sentosa Cove Hotel. However, VivoCity, Seah Im Food Centre, HarbourFront Bus Interchange, and HarbourFront MRT Station are a short drive away.

Source: EdgeProp LandLens (as at 25 June 2024)

Signs point to a good deal for the buyer

Our "Is it a Good Deal?" analytics tool indicates that the buyer may have secured a bargain because the transacted price was below the average prices for The Berth By The Cove, the district, and two neighbouring condos. The main drawbacks are the lack of nearby MRT stations and primary schools, which is an inconvenience faced by all residents living on Sentosa.

Source: EdgeProp Is it a Good Deal (as at 25 June 2024)

Rising number of unprofitable transactions

At the time of writing, only one profitable and three unprofitable transactions have taken place this year for The Berth By The Cove. The sole profitable transaction was for a three-bedroom unit that measures 1,625 sq ft. The seller sold it in January for $1,511 psf after purchasing it in March 2007 for $1,255 psf, resulting in a profit of approximately $416,000.

The three unprofitable transactions took place in either May or June and are for a variety of unit types that range in size from 1,152 sq ft to 3,315 sq ft. Losses range from approximately $230,000 to $780,000. (see Table 1).

The unit that resulted in a loss of approximately $780,000 is a two-story penthouse with five bedrooms, a private lift, and a spa pool. (see Floor Plan 1). The master bedroom and bathroom are on the second storey, along with the spa pool and a roof terrace. The remaining four bedrooms, living and dining areas, and the kitchen are on the first storey. The spacious unit is expected to appeal to large households. Some owners will appreciate the extra privacy afforded by the separation of the master bedroom from the rest of the house.

Source: EdgeProp Research

In contrast, The Berth By The Cove had five profitable transactions and one unprofitable transaction last year. The lone unprofitable transaction was for a four-bedroom unit that measures 3,046 sq ft. The seller purchased the unit in July 2014 for $1,149 psf before selling it in November 2023 for $1,067 psf, resulting in a loss of approximately $250,000.

Of the five profitable transactions that took place last year, three were for two-bedroom units that measure just under 1,200 sq ft. (see Table 2). Profits ranged from approximately $77,000 to $884,000.

Among the five profitable transactions, two of the units (#04-16 and #05-16) share the same layout. Both units have two bedrooms and measure 1,173 sq ft. (see Floor Plan 2). Both units were also purchased in 2013 and yielded profits of less than $100,000 for their sellers.

Source: EdgeProp Research

More active resale market for The Berth By The Cove

There are only two condos within walking distance of The Berth By The Cove, namely The Azure and The Residences at W Singapore Sentosa Cove. Among the three 99-year leasehold developments, The Berth By The Cove is the oldest, having obtained its TOP in 2006. The Azure (TOP in 2008) is two years younger, while The Residences at W Singapore Sentosa Cove (TOP in 2011) is five years younger.

Source: EdgeProp Is it a Good Deal (as at 25 June 2024)

The Residences at W Singapore Sentosa Cove recently made headlines when the developer offered several units for sale in April at a generous discount. A total of 65 units were sold at an average price of $1,780 psf.

Despite the discount offered to buyers of the 65 units, the current average resale price for The Residences at W Singapore Sentosa Cove ($1,790 psf) is still higher than that for The Berth By The Cove ($1,445 psf) and The Azure ($1,643 psf). (see Chart 1).

This year, the average resale price for The Berth By The Cove grew by 2.6% y-o-y, which is comparable to the growth of 2.5% y-o-y for The Residences at W Singapore Sentosa Cove. In contrast, the average price for The Azure fell by 10% y-o-y.

Source: EdgeProp Market Trends (25 June 2024)

The average price for The Berth By The Cove has trended below both its neighbours, which could have contributed to the condo’s popularity among buyers. From 2017 to last year, more units from The Berth By The Cove were sold compared to the other two developments. This year, the discount pushed sales volume for The Residences at W Singapore Sentosa Cove to 65 units, but The Berth By The Cove still chalked up four transactions compared to only one transaction for The Azure. (see Chart 2).

Source: EdgeProp Market Trends (25 June 2024)

Average resale price for The Berth By The Cove lower than Sentosa and Islandwide

The average resale price for The Berth By The Cove has consistently been below that for 99-year leasehold condos in Sentosa but above that for its counterparts islandwide. However, the average price for The Berth By The Cove ($1,445 psf) dipped below that for leasehold condos islandwide ($1,647 psf) since last year while the average price for leasehold condos in Sentosa continues to be the highest ($1,895 psf). (see Chart 3).

Furthermore, the average resale price for The Berth By The Cove has declined by 2% since 2014. In contrast, the average prices for leasehold condos in Sentosa and islandwide increased by 10% and 54.8%, respectively.

Source: EdgeProp Market Trends (as at 25 June 2024)

Conclusion

Last year, The Berth By The Cove had more profitable transactions than unprofitable ones, but the trend seems to have reversed based on the transactions that have taken place thus far this year. However, demand for units in the leasehold development remains undeterred, with four sales transactions this year compared to only one transaction for the neighbouring The Azure. Demand for The Berth By The Cove could be due to its lower price compared to its leasehold counterparts in Sentosa and islandwide.

The purchaser of the five-bedroom penthouse seems to have secured a bargain, paying $1,237 psf for the unit, which is lower than the prevailing average prices of $1,445 psf for the development and $1,859 psf for leasehold condos in Sentosa. It should be noted that the average price for the development has dipped by 2% since 2014, which should not deter owner-occupiers who appreciate living in the exclusive neighbourhood.

To learn more about this transaction, and whether it is a good deal, click here.

Check out the latest listings for The Berth By The Cove, The Azure, The Residences At W Singapore Sentosa Cove properties

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