Should You Buy This Sentosa Condo At A 40% Discount?

Published 14 April 2024, 1:37 PM SGT · 5 min read · 1.2k

Yet another luxury condo fire sale

You’ve probably heard: The prices at The Residences at W Singapore Sentosa Cove are being slashed by over 40 per cent. But as great as that may sound, here are a few things that haven’t made their way into some media articles:

The 99-year lease starts from 2006, and this project was completed in 2011. It still hasn’t sold out its 228 units, which is a really long time.
The one recorded transaction we can find here, on 7th September 2023, shows a loss of $1.46 million.
The maintenance fee of just a two-bedder unit is $1,200+ per month. For the bigger units, this can go from $1,400 to $1,600+ per month.
Do remember that if a lot of units sell for 40 per cent less, then the floor price is just 40 per cent less. Future buyers will use that as the reference point, which might not make the discount (which is off the original price) that big of a deal.

Now am I saying it’s bad? No, like most Sentosa Cove condos, it’s still considered a prestigious location with lifestyle benefits you can’t get elsewhere.

But some people may be considering this just because the price seems cheap. Prices that start from $1,648 in Sentosa? As even Lentor has prices that have breached the $2,000 psf mark, this may seem like a comparative bargain.

The issue is that if you’re considering this as an investment, the rental rates here may seem to be good - but the high maintenance means the net yield you get back is a lot lower. (Although, do note that the maintenance fees here also include the Sentosa Island charge).

Let’s not forget that when you want to exit you really only have a niche group to target. Sentosa may be a great place if you love the beach lifestyle, but for most Singaporeans or those who have young kids - it may be a tough ask. You would most definitely need to own a car, and travelling in and out may be a bigger nuisance than you might think.

This is the kind of property you should buy when you’re rich enough to not worry about gains, yields, etc. Nevertheless this should really only apply to those who’ve already been eyeing Sentosa for some time, and are willing/aware of the tradeoffs of living on this island - this would certainly be an attractive price.

There’s a certain odour leaving the air in our property market.

When it comes to real estate - and not just in Singapore - there’s a connection between wealth and impracticality. (Actually come to think of it, that link exists in any market, period). Once you’re gargling Bird’s Nest, a weird aversion to the general public kicks in:

Suddenly you’ll act like a dozen drug cartels have a personal interest in you, and start living in the most private and inconvenient place you can find. Some place where your landed house is blocked off by hedgerows (thus making it impossible for your food delivery to find you), or where no one bothered by a $32 Grab ride will ever care to visit you.

At some point however, this resulted in some people aping the preferences: rich people live in low-density areas where there are no HDB flats - and so, some of us reasoned, anywhere without HDB flats must be classy as hell. Having no blocks in view went hand-in-hand with $600 dinners and an overpriced watch.

But things are finally changing

First, it’s been a long time since any property agent has used the “there are no HDB blocks in sight” angle. And if you look at the response to the upcoming Bayshore estate, it’s been mostly positive: most of the residents I’ve spoken to are actually glad they’ll have more amenities nearby. This is in stark contrast to the property market I knew from the early 2010’s, where the response was more likely to be shock and horror.

“Die already, bringing down our property value!”

In fact, in recent conversations, more buyers have started to look for an HDB enclave within walking distance. We seem to have finally come to grips with the fact that “HDB = good amenities.” There’s more likely to be a late night supper place, a coffee shop, a minimart, heck even a McDonald’s. And I think we’re approaching the time when more buyers start seeing nearby blocks of flats as a real plus point.

Meanwhile in other property news…

Could there be HDB towns where average prices are dropping? Well, not by much but it does happen. Here’s where.
A 4-room flat close to the MRT, and below $495,000? Here’s where we managed to find some.
Tanah Merah is in the spotlight these days, but a lot of people are going to compare Sceneca Residence to resale options like Urban Vista - so see if it’s worth a look.
Chuan Park Residences may be the next hottest launch to come on the radar - check out the details and see if it’s for you.

Weekly Sales Roundup (01 April - 07 April)

The challenge for many buyers today isn't access to information.

It's interpreting that information in a way that makes sense for their finances, goals, and stage of life.

Over time, that's also why we decided to work with agents who shared the same data-driven and advisory-led approach behind our editorial, consultants who could help readers think through decisions more objectively, rather than simply push transactions.

Today, the team has worked with more than 2,000 clients across over $5B in property transactions.

See how the consultation works →

Top 5 Most Expensive New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
THE RESERVE RESIDENCES	$7,945,200	2519	$3,154	99 yrs (2021)
WATTEN HOUSE	$6,202,000	1851	$3,350	FH
DALVEY HAUS	$5,300,000	1561	$3,396	FH
19 NASSIM	$3,688,000	1109	$3,326	99 yrs (2019)
BLOSSOMS BY THE PARK	$3,487,264	1313	$2,656	99 yrs (2021)

Top 5 Cheapest New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
LENTOR HILLS RESIDENCES	$1,366,000	581	$2,350	99 yrs (2022)
LAVENDER RESIDENCE	$1,400,000	624	$2,242	FH
HILLOCK GREEN	$1,428,000	657	$2,175	99 yrs (2022)
HILLHAVEN	$1,498,040	700	$2,141	99 yrs (2023)
THE LANDMARK	$1,502,922	495	$3,035	99 yrs (2020)

Top 5 Most Expensive Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
SIN MING CENTRE	$49,000,000	15425	$3,177	FH
THE PEAK	$8,300,000	5522	$1,503	FH
SKY@ELEVEN	$6,480,000	2713	$2,389	FH
ST REGIS RESIDENCES SINGAPORE	$6,050,000	2594	$2,332	999 yrs (1995)
CAPE ROYALE	$5,825,000	2508	$2,323	99 yrs (2008)

Top 5 Cheapest Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
PRESTIGE HEIGHTS	$624,000	344	$1,812	FH
PARC ROSEWOOD	$642,888	431	$1,493	99 yrs (2011)
THE COTZ	$668,000	398	$1,677	FH
VIVA VISTA	$700,000	377	$1,858	FH
VIBES @ EAST COAST	$708,000	420	$1,687	FH

Top 5 Biggest Winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
PRESTIGE HEIGHTS	$624,000	344	$1,812	FH
PARC ROSEWOOD	$642,888	431	$1,493	99 yrs (2011)
THE COTZ	$668,000	398	$1,677	FH
VIVA VISTA	$700,000	377	$1,858	FH
VIBES @ EAST COAST	$708,000	420	$1,687	FH

Top 5 Biggest Losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
MARINA BAY SUITES	$3,938,000	2067	$1,905	-$450,000	14 Years
LUMIERE	$1,800,000	990	$1,818	-$255,000	14 Years
ST REGIS RESIDENCES SINGAPORE	$6,050,000	2594	$2,332	-$57,000	17 Years
SKYLINE RESIDENCES	$1,060,000	484	$2,188	-$43,040	12 Years
WATERSCAPE AT CAVENAGH	$1,280,000	592	$2,162	-$25,000	11 Years

Transaction Breakdown

At Stacked, we like to look beyond the headlines and surface-level numbers, and focus on how things play out in the real world.

If you'd like to discuss how this applies to your own circumstances, you can reach out for a one-to-one consultation here.

And if you simply have a question or want to share a thought, feel free to write to us at stories@stackedhomes.com. We read every message.

Frequently asked questions

Is buying the Sentosa condo at a 40% discount a good investment?

The condo still hasn't sold out its units and has experienced a recorded loss. High maintenance fees and niche appeal may impact its investment potential, especially for rental yields.

What should I consider before buying the Sentosa condo at a discount?

Consider the long lease start date, ongoing maintenance fees, limited resale market, and the lifestyle tradeoffs of living on Sentosa Island, such as transportation and accessibility.

Are prices at Sentosa condos really that low compared to other areas?

Prices start from $1,648 psf in Sentosa, which may seem cheap compared to areas like Lentor where prices have breached $2,000 psf. However, discounts may not significantly lower the floor price.

What are the drawbacks of living in a Sentosa condo?

Living in Sentosa may require owning a car, and traveling in and out can be inconvenient. The niche market may also limit resale options and appeal to a specific group.

Has the perception of luxury living without HDB flats changed?

Yes, recent responses to developments like Bayshore show more appreciation for proximity to amenities and HDB estates, indicating a shift in buyer preferences.

Join 16,000+ readers on Telegram for new launches, price movements, and our analysis as we publish them. Subscribe on Telegram

Ryan J. Ong

Partner at Stacked

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.