SINGAPORE - With prices slashed by over 40 per cent from its initial sales launch in 2010, a total of 65 units at The Residences at W Singapore Sentosa Cove were sold on April 15 and 16.

Around 3,200 visitors turned up for the viewings from April 10 to 14, said a spokesman for Cityview Place Holdings, which owns 203 units at the development.

Cityview, an associate of the condominium developer City Developments (CDL), released 58 units for sale on the first day, which saw 45 units sold, including four penthouses.

On April 16, Cityview released additional units for sale and another 20 units were sold, its spokesman told The Straits Times.

The 65 units were sold at an average selling price of $1,780 per sq ft (psf).

In comparison, the median price of Sentosa Cove condominiums sold from January to March 2024 was $1,999 psf.

The Cityview spokesman said that 94 per cent of the buyers are Singaporeans and permanent residents, with the rest from China, France and the United States.

CDL had initially launched the units for sale in 2010 at between $2,500 psf and $3,000 psf. Only 20 units were sold that year.

Between 2012, when the development was completed, and 2023, five resale transactions were recorded.

Several rounds of measures rolled out to cool the property market from 2010 had an impact on The Residences at W, which was pulled from sale.

Speaking about the sales on April 15 and 16, industry experts unanimously pointed to the pricing strategy as the main reason for the nearly 80 per cent take-up of units on the first day.

Mr Eugene Lim, key executive officer of ERA Singapore, said: “The competitive pricing has been a key factor in attracting these astute buyers. On a per square foot basis, the price is very attractive for a prime property in Sentosa.”

He added: “Furthermore, the prevalence of hybrid work arrangements and the convenience of last-mile delivery services have mitigated the perceived inconvenience previously associated with Sentosa Cove.”

He noted that the majority of the buyers are older than mid-40s and are probably “seeking a lifestyle home away from the hustle and bustle of the city, and the units are ready for immediate occupancy”.

Mr Nicholas Mak, chief research officer of property portal Mogul.sg, noted a preference for larger living spaces among buyers, with some seeing the prices as a bargain compared with projects outside the central region.

On the first day, more three-bedroom units were sold than two-bedders.

However, Mr Mak cautioned that investing in Sentosa Cove involves considerable risk, as 63 per cent of resale transactions over the past decade resulted in losses.

Those buying the units with a genuine desire for a waterfront residence are likely to find fulfilment in their investment, he said.

Nonetheless, buyers should be aware of the comparatively lower potential for capital gains compared with suburban condos, he added.

He also pointed out that the current price of The Residences at W essentially aligns with the prevailing rates for resale condos in Sentosa Cove.

In 2022 and 2023, the median price for Sentosa Cove condos went above $2,000 psf, supported by the sales of units in Cape Royale, which were sold at between $2,000 psf and $2,300 psf.

The upscale development completed in 2013 hit the market only in 2022, nine years after the project was completed.

With Cape Royale excluded, Urban Redevelopment Authority data showed the median psf price for a resale 99-year leasehold condo in Sentosa Cove to be $1,577.

“Essentially, buyers are acquiring a resale condo at market value,” said Mr Mak.

PropNex chief executive Ismail Gafoor remains positive about the long-term prospects of Sentosa Cove properties, citing the upcoming Greater Southern Waterfront precinct and plans to rejuvenate tourism offerings at Sentosa.

Among the units Cityview released for sale on April 16 was a 2,486 sq ft three-bedder with a private pool priced at about $4 million, or $1,620 psf.

Mr Mak said: “I think the owner is striking while the iron is hot. The fact that they are willing to mark down the value of their investment shows that they are pricing to sell. They are making it even cheaper than Cape Royale.”

“I think Singaporeans can’t pass on what they perceive as a good bargain.”