FANCY revelling in a resort home that’s just under 15 minutes from the central business district and shopping malls? Where can you enjoy a round of golf at an international golf course situated right at your doorstep? And if travel is on the cards, the airport is just a 30-minute ride away. If that sounds appealing to you and you have anywhere from $2 million to $20 million to spare, a resort home in Sentosa Cove could be the answer.

Sentosa Cove is to Singapore what Sanctuary Cove is to Australia and the French Riviera is to France. Set on the eastern shore of Sentosa island (just south of the main Singapore island), Sentosa Cove, which spans 117 hectares of mostly reclaimed land, is undergoing a transformation that will see it become Singapore’s first and only integrated oceanfront gated marina residential community.

When completed in 2010, Sentosa Cove will be a luxurious estate comprising some 2,500 99-year leasehold homes in the form of oceanfront villas, waterway bungalows, hillside mansions and upscale condominiums. These will be complemented by an intimate marina village offering supporting amenities such as the 240-berth One Degree 15 Marina, the 320-room W Hotel being developed jointly by City Developments and Starwood, and a three-storey retail and commercial complex with a wide array of shops, upmarket F&B outlets, spa and fitness centre and small-office-home-office (SoHo) units.

To top it all, the development of Resorts World at Sentosa, Singapore’s second integrated resort with a casino, will undeniably attract high-rollers who covet luxury homes to invest in Sentosa Cove, making it the Monte Carlo of Asia.

There are no restrictions on foreigners purchasing condominium units in this enclave. However, foreigners looking to purchase a landed home here will need to submit an abridged application form to the Land Dealings (Approval) Unit of the Singapore Land Authority for approval to purchase what is classified as restricted property in Singapore.

This abridged application, only available for landed homes in Sentosa Cove, will enable a foreigner to receive fast-track approval in 48 hours on the back of simplified purchasing criteria and approval procedure. The catch is that foreigners who have been granted the abridged approval will be required to occupy the landed homes themselves and must not own more than one restricted property in Singapore.

Furthermore, as one of the options under the Global Investor Programme, an applicant can apply for Singapore permanent residency by utilising his property investment in Singapore to form up to half the minimum $2 million required to be invested in approved businesses or investments in Singapore.

With these attractions, it is no wonder that high net worth individuals from all over the world have been making a beeline for a slice of this luxurious resort home market. Foreigners are believed to have accounted for 50 per cent of the property sales in Sentosa Cove. By 2010, 60 per cent of the 10,000 Sentosa Cove residents will likely be foreigners, thus setting the stage for a truly international community.

Since 2004, at least 12 projects comprising six condominium and six landed housing developments have been launched for sale. These projects have enjoyed brisk sales, save for those launched after the onset of the US sub-prime mortgage crisis in 3Q 2007.

Here is a a snapshot of some of the projects in Sentosa Cove.

NON-LANDED DEVELOPMENTS

The Berth By the Cove:  This was the first condominium development to be launched and completed in Sentosa Cove. The development consists of 15 six-storey blocks and provides an array of facilities including 25 berths for private yachts. All the apartments have views of the ocean, with the master bedroom and living rooms facing the sea.

There are 200 units in the development comprising 188 two- to four-bedrooms apartments and penthouses, ranging from 1,015 sq ft to 3,100 sq ft; and two duplex sky villas of 6,028 sq ft, each with a balcony lap pool.

The Oceanfront @ Sentosa Cove: This seafront condominium comprising three 15-storey and two 13-storey blocks is by far the largest and tallest residence in Sentosa Cove. Designed by world-renowned architects Wimberly Allison Tong and Goo Inc and Antonio Citterio, it features a host of luxurious facilities including a fully equipped gym and an infinity lap pool stretching into the horizon.

There are 264 units in the development, comprising 239 two- to four-bedrooms apartments ranging from 1,216 sq ft to 4,282 sq ft, seven sky suites of 3,326 sq ft to 5,038 sq ft, two villas measuring 4,585 sq ft to 4,704 sq ft and 16 sky villas of 2,745 to 8,095 sq ft.

Turquoise: One of the most recently launched developments in Sentosa Cove, Turquoise comprises two six-storey blocks with attics fronted by a waterway near the fairways for views of the golf courses. It boasts full condominium facilities as well as 21 private berths within the development.

Turquoise will have a total of 91 residential units, with 78 three- to four-bedrooms ranging from 2,088 sq ft to 3,035 sq ft, 10 duplex penthouses of 3,111 sq ft to 3,746 sq ft with private spa pools and terraces and three sky villas ranging from 6,900 sq ft to 7,987 sq ft with private sky gyms, infinity lap pools and terraces. Units are still available for sale by the developer.

Marina Collection: Marina Collection is the latest condominium project to be launched in Sentosa Cove. Located next to the One Degree 15 Marina, the development comprises three four-storey blocks. Facilities provided include a lap pool, gym, clubhouse and concierge service. Buyers are offered One Degree 15 Marina club membership and 40 berths will be made available for lease to owners.

The 124-unit project will have 93 three- to four-bedroom apartments ranging from 1,873 sq ft to 3,272 sq ft and 31 penthouses (with private lap pools) measuring 3,369 sq ft to 4,693 sq ft. The project is still open for sale by the developer.

LANDED DEVELOPMENTS

Those who want to design and build their own homes have the chance to do so on Sentosa Cove with land parcels on offer for sale. So popular are they that all the land parcels at Sentosa Cove have been sold as at end-August 2008. There are, however, opportunities to purchase landed homes in the primary and secondary markets. Landed projects that keen buyers can still lay their hands on include:

The Berthside: The Berthside comprises eight terraces with their own private berth and a spacious deck area for outdoor dining. It is the first landed housing development to be launched and completed in Sentosa Cove. The land size for each terrace unit ranges from 2,324 to 3,851 sq ft, with a built-up area of 4,168 sq ft to 5,170 sq ft.

Coral Island: This is an island in the North Cove of Sentosa Cove. It houses 21 bungalows, each equipped with its own private mooring berth for a pleasure craft. The bungalows are built on land plots ranging from 6,000 sq ft to 15,000 sq ft and have built-up areas of between 6,000 sq ft and 12,000 sq ft.

FUTURE PROJECTS

In the pipeline are some 535 condominium and landed houses in Sentosa Cove, which could potentially be launched in the next two to three quarters. These include the 105 yet-to-be-launched condominium units from Turquoise and Marina Collection as well as City Developments’ 228-unit Sentosa Quayside and Ho Bee Group’s 151-unit Seascape.

Beyond the next nine months, would-be purchasers and investors can also look forward to another estimated tally of 350 condominiums and landed homes that are likely to be generated from developers’ land banks.

Buoyant demand for Sentosa Cove’s resort homes has resulted in the trebling of launch prices of non-landed properties, from an average of $785 per sq ft for the first condominium project, The Berth by the Cove, launched in November 2004, to $2,800 psf for latest release for The Marina Collection in December 2007.

Based on caveats lodged, prices of landed homes in Sentosa Cove have similarly trended up steeply. Prices of bungalows have increased some 75 per cent from an average of $743 psf of land  area as at late 2005 to $1,303 psf of land area as at end-2007. For terrace houses, average prices have leaped by 185 per cent from $847 psf of land area as at 1Q 2005 to $2,414 per sq ft as at 1H 2008.

With the stock of resort homes in Sentosa Cove capped at 2,500 units, one can be assured that the exclusivity and resort ambience of homes in the marina community will be preserved. In addition, the rising population of well-heeled expatriates brought about by Singapore’s growing status as a global city and regional financial hub will continue to support demand for resort homes in Sentosa Cove. Hence, despite the current market weakness due to global economic and financial turbulence, the mid-to-long term prospects for resort homes in Sentosa Cove are bright.

Singapore’s sound political, social, economic and geographic environment that is free from natural disasters makes buying a home in this island state, be it for investment, holiday or retirement, a worthwhile option. Hence, laying one’s bet on Sentosa Cove could just be the match made in investment heaven.

Chia Siew Chuin is associate director while Audrey Tan is analyst at Research & Advisory, Colliers International

Business Times – 26 Sep 2008

For more information on bungalow, villa or condo for sale in Sentosa Cove, please call (65) 62727 800 or login to www.OneSentosa.com – The Gateway to Sentosa Cove!

COMING home to an immaculately kept apartment with all the creature comforts or having a beach retreat at your own private villa with all the attendant luxuries are all possible in a branded residential development – the marriage of a luxury residential development and a reputable brand.

Such brands are typically from the luxury fashion world of the likes of Armani and Bulgari, or from an established designer like Yoo or Starck. Then there are the luxury hospitality brands such as St Regis and the Ritz Carlton.

Branding is imperative to an individual seeking a specific lifestyle that the brand espouses. A branded residential development not only provides the investors ownership of a tangible real estate, it also encompasses the brand’s image and value-added services. Branded residences thus become the epitome of an affluent lifestyle given the exclusivity and recognition that these brands provide, in addition to the security, trust and extensive privileges and services which other unbranded luxury residential developments do not generally offer.

Branded residential developments could either be single or mixed use located within an urban or resort setting. They provide the buyers the opportunity to enjoy a full range of services rendered by a branded hospitality service provider.

The target market for branded residential developments is of course the well-heeled high end of society. These affluent individuals have experienced similar quality services elsewhere and now seek the same uncompromised high quality hospitality services in their home country.

Branded residential developments usually command a premium. This is because they offer the owners a distinguished appeal with exclusively designed developments and luxury hotel services and amenities. This premium is estimated to range from 20 per cent up to 40 per cent as compared to similar unbranded residential developments.

While the branded residential market in the US and Europe is quite mature, this market is relatively non-existent and is still in its developing stage in South-east Asia. It is therefore not impossible to expect countries such as Indonesia, Thailand and Singapore to witness the continual development of this market.

Branded developments prefer locating in areas with strong resort markets or cities that offer occupiers and investors the opportunity for a second home. For example, Bali and Phuket are favoured for their unique cultures and luscious beaches. Singapore on the other hand, offers the unique blend of a modern multi-racial city set in a tropical environment.

Rising affluence in Asia is another primary driver for this growth. According to World Wealth Report by Merrill Lynch and Capgemini, the number of high net worth individuals (HNWI) grew by 6 per cent while the Ultra-HNWI band grew by 8.8 per cent in population size in 2006 globally.

Asian countries recorded the fastest growth in terms of the number of HNWIs. India, China, South Korea, Indonesia, Singapore and the United Arab Emirates are in the top 10 markets in HNWI population growth. Other countries in this list include Brazil, Slovakia, Czech Republic and Russia. Collectively, Asia currently holds a quarter of the global high net worth individuals.

According to the same World Wealth Report, Asia’s high net worth wealth will grow at 7.9 per cent per annum and is projected to reach US$13.9 trillion by 2012. The Asia-Pacific region wealth market is expected to surpass Europe as the second wealthiest region after North America in the next five years.

Using real disposable income as an indicator of rising affluence, Asia as a region has the highest disposable income compared to West Europe and North America. As at 2007, the Asian disposable income has a 22 per cent and 47 per cent gap over North America and Western Europe respectively.

With rising affluence globally and regionally, demand for branded residential developments is likely to increase in tandem. Furthermore, it is the affluent from Asia Pacific that are most likely to spend on luxury items and judging by their investment portfolios, Asians have a greater affinity for tangible assets such as real estate and cash compared to their Western counterparts.

An investment in branded residential developments can be for personal occupancy or for income purposes which will help defray the carrying costs when these properties are leased. The demand for branded residential developments could therefore come from a mixture of high net worth individuals and institutions situated locally, regionally or across continents. Some examples of these investors include real estate funds, and individual investors from the Middle East, China, India, Indonesia and Eastern Europe.

It should be highlighted that investments in the branded residential development may differ from country to country.

With potential demand on the rise, the branded residential development market is set to grow in this region. While there is already an established market of branded residential developments in certain cities in South-east Asia, there is also a strong pipeline of branded residential coming on stream over the next few years. In terms of existing developments, the major players include St Regis in both Bali and Singapore and Four Seasons in Bali and Langkawi. Some other notable developments include Bulgari in Bali, Ritz Carlton in Bali and Marriott in Phuket.

Thailand seems to lead this market in terms of future supply. The St Regis Group and Regent Group will each open a branded residential development in Bangkok, Four Seasons and Shangri La in Phuket and Conrad in Koh Samui.

In addition, the St Regis Group and Regent Group is each developing a branded residential development in Kuala Lumpur while Singapore will welcome the completion of a Ritz Carlton branded residential development in the next couple of years.

The branded residential market in Asia is still in its infancy but the market has the potential to grow. We are already seeing a number of developments mushrooming around Asia.

There is also a strong investment demand from high net worth investors looking for branded products where price is not a major issue.

Desmond Sim is associate director of research and consultancy while Melissa Sng is research analyst, Jones Lang LaSalle

Business Times – 26 Sep 2008

It overtook London with an average price increase of 30% to £3,762 psf

London was overtaken by Monaco as the world’s most expensive location for luxury homes as job cuts by banks and the prospect of lower bonuses discouraged buyers.

Cooling demand: Average prices for houses and apartments in London’s nine most expensive neighbourhoods fell for the first time in five years in August

The average price of London’s most expensive houses and apartments rose 1.8 per cent to £3,291 a square foot in the second quarter from a year earlier, according to an index compiled by Knight Frank LLP.

In Monaco, the average increase was 30 per cent to £3,762, the property broker said on Tuesday in a statement.

‘The prime residential market is weakening across the world, due to the fallout from the credit crunch and declining economic conditions in western markets,’ said Liam Bailey, Knight Frank’s head of residential research.

Demand from the 300,000 people who work in financial services, which has underpinned London’s luxury-housing market, has dropped as companies in the industry slash personnel costs.

Lehman Brothers Holdings Inc, which filed the biggest bankruptcy in history, employed about 4,500 here.

Average prices for houses and apartments in London’s nine most expensive neighbourhoods fell for the first time in five years in August, as the prospect of a recession weighed on demand, a separate index compiled by Knight Frank showed last month.

The City of London Corporation, the municipal authority for London’s main financial district, estimates that 42,000 jobs will be lost during the next year.

Alongside the financial centres of London and New York in Knight Frank’s index come homes on the French Riviera and chalets in the French Alps, reflecting demand from high net worth individuals, notably from Russia, who are also buyers of ’super prime’ properties here and in New York.

In London, Monaco and New York, prices of properties worth at least £10 million (S$26 million) have continued to climb, with some newly constructed or refurbished homes fetching in excess of £7,000 a square foot, Mr Bailey said.

‘Demand is not going to evaporate,’ he said. ‘Wealth creation and accumulation in emerging economies and in specific high-end service sector activities will continue.’

Business Times – 25 Sep 2008