Singapore - A new record price in terms of per square foot of land area is believed to have been set for a bungalow on Sentosa Cove.
According to caveats evidence, a bungalow on Ocean Drive with views of the Pulau Brani container terminal was recently sold for $32.5 million, which works out to $3,214 psf on land area of 10,111 sq ft.
This busts the record set in late 2010 for a property just a few doors away that fetched $2,989 psf on land area of 9,436 sq ft, amounting to $28.2 million.
In the latest deal, the seller is a seasoned Singaporean bungalow investor, while the buyer is understood to be a Malaysia citizen.
Homes on Sentosa Cove have a 99-year leasehold tenure.
Some market watchers point out that the property was last transacted in November last year at $24.5 million, which means the seller would be forking out the maximum 16 per cent seller's stamp duty (SSD) payable for the sale of properties involving a holding period of a year or less.
The SSD on the $32.5 million sale would thus amount to $5.2 million.
That, along with around $730,000 for the standard 3 per cent buyer's duty on the $24.5 million purchase price, would mean the owner's gain would be slightly over $2 million, before taking into account commissions, interest and other expenses.
Newsman Realty managing director KH Tan confirmed there has been a sudden pick up in bungalow deals in Singapore's upscale waterfront housing district in the past two to three months, accompanied by a strengthening in prices.
Last month, there were two separate deals involving the sale of two adjacent prime seafronting bungalows along Cove Grove boasting views of the Southern Islands - at $25.5 million or $2,524 psf based on land area of 10,102 sq ft, and nearly $24 million, reflecting a price of $2,468 psf on 9,725 sq ft land area.
A caveat has also been lodged for a bungalow along Cove Drive with waterway and golf course views, sold for $2,202 psf in August.
However, there seems to be more anecdotal evidence of bungalow transactions on Sentosa Cove than caveats lodged, suggesting that in most cases, options have yet to be exercised by the buyers.
