If you’re keeping an eye on the latest property developments in Sentosa Cove, a recent sale of a luxury plot on 69 Ocean Drive may be of interest. Originally bought at a record-breaking S$39.334 million in 2021, this exclusive plot has now been sold for S$22 million. Although it closed at a significant loss, it’s considered a unique acquisition due to its location and potential value. Let’s dive into what this sale means for you if you’re following Sentosa Cove’s luxury real estate trends.
Details of the 69 Ocean Drive Sentosa Cove sale
The 69 Ocean Drive property was sold on September 27, 2024, to Mr. Benedict Beh Wei Hao for S$22 million, amounting to approximately S$1,125 per square foot (psf). Covering a spacious land area of 19,550 square feet (or about 1,816.3 square metres), this deal stands out in a market known for steep prices. However, the sale came at a substantial loss compared to its previous purchase price.
According to 99.co’s Researcher, the previous owner likely acquired the unit at a whopping S$39.334 million back in March 2021. This translates into a drop of around S$17.334 million or a 78.79% price reduction. This decline is notable, especially as the previous S$39.334 million sale had been the most expensive transaction in Sentosa Cove’s history, with only two other properties ever selling above the S$30 million mark in this area.
There could be several reasons for this substantial reduction. The drop may be linked to Sentosa Cove’s association with a money laundering case involving former owner Su Baolin, who faced charges and asset seizures in a high-profile investigation.
Here’s how the demolished house appeared back in 2018. Image credit: Google Maps.
Additionally, the previous owner had demolished an existing bungalow on the site, with plans to construct a two-storey residence, including a pool, before his arrest. As a result, the land was left vacant, which could have also impacted its sale price.
For comparison, another Sentosa Cove property at 258 Ocean Drive, with a smaller plot size of 8,677 square feet, sold in February 2024 for S$16 million, translating to S$1,844 psf. This illustrates a notable difference in the price per square foot between larger and smaller parcels in the area.
Unique attributes of the 69 Ocean Drive plot
What makes this particular site on 69 Ocean Drive truly exceptional? For one, the property comes with a 99-year leasehold tenure, starting from July 26, 2005. Beyond its size and lease terms, this plot offers unobstructed views of both the sea and Singapore’s Central Business District (CBD), adding significant appeal.
In Sentosa Cove, sea-facing properties with expansive land are few and far between. Property analysts note that fewer than ten plots in the entire Sentosa Cove area are both sea-facing and exceed 15,000 square feet in size. With about 350 bungalow plots in Sentosa Cove, this makes the 69 Ocean Drive property an extraordinary find among other high-end landed houses in Sentosa Cove.
Sentosa Cove market trends and current insights
Landed houses in Sentosa Cove remain a hot topic in Singapore’s property market. Historically, large plots in this area, especially those above 15,000 square feet, have fetched between S$33 million and S$43 million from 2020 to 2022. However, you’re likely to notice a shift in prices in the current listings. Today, plots over 9,000 square feet are listed at prices above S$20 million, regardless of whether they offer a sea view. This S$22 million transaction for a waterfront plot could be seen as a value deal.
In fact, transactions in Sentosa Cove, which is considered part of Singapore’s prime district, have increased. During the first half of 2024 alone, property sales in Sentosa Cove jumped to 101, compared to 58 sales over the same period in 2023. Despite this increase, median prices on the island dipped slightly, from S$1,999 psf in the first quarter of 2024 to S$1,801 psf by the second quarter. This trend hints at evolving dynamics in Sentosa Cove prices, making it a space worth watching if you’re considering a purchase in this prestigious area.
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The significance of this record-breaking sale
The sale of 69 Ocean Drive sets a new standard for seafront-facing land in Sentosa Cove, where land-only transactions are unusual. According to property analysts, this deal establishes a benchmark for similar seafront properties in the area. Since most transactions involve completed homes, sales like this one are rare and can shape future price expectations for other seafront plots.
It’s also worth noting that analysts estimate an additional investment of at least S$16 million would be necessary if the buyer decides to build a new bungalow on the land. This pushes the total investment up significantly, but for a prime waterfront plot in Sentosa Cove, it may still be appealing for buyers seeking exclusivity and prestige.
If you’re considering Sentosa Cove as a potential investment, 69 Ocean Drive’s recent transaction sheds light on the area’s unique appeal and fluctuating prices. With its mix of luxury, exclusivity, and evolving market trends, Sentosa Cove remains one of Singapore’s premier real estate destinations, where value can vary as much as the properties themselves.
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