The recent noteworthy price adjustment at The Residences within the W Hotel in Singapore's Sentosa Cove has triggered a remarkable sales frenzy. Reportedly, the adjustment, slashing prices by over 40%, resulted in the sale of 65 units from April 15th to 16th. This sales frenzy is considered a success of the pricing strategy, attracting significant interest from buyers.
According to a spokesperson from Cityview Place Holdings, the sales event attracted approximately 3,200 prospective buyers, while the company owns 203 units in the development project. City Developments (CDL)'s joint venture company, Cityview, released 58 units for sale on the first day, with 45 units quickly snapped up, including four top-floor apartments. On April 16th, Cityview International released more units for sale, and an additional 20 units were swiftly sold. The average selling price for these sold units was S$1,780 per square foot, compared to a median price of S$1,999 per square foot for Sentosa Cove condos during the same period.
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This sales event attracted buyers from Singapore, China, France, and the United States, with 94% being locals or permanent residents of Singapore. Industry insiders widely attribute the success of this sales event to the competitiveness of the pricing strategy. Eugene Lim, Key Executive Officer of ERA Singapore, noted that one of the main factors attracting these buyers was the competitive pricing, especially considering the prime location of these units in Sentosa Cove. Additionally, flexible work arrangements and convenient last-mile delivery services alleviate potential inconveniences for buyers in Sentosa Cove.
According to Nicholas Mak, Chief Research Officer at real estate portal Mogul.sg, buyers tend to seek larger living spaces, and some consider these units more affordable compared to other projects outside Sentosa Cove. However, he also cautioned that investing in Sentosa Cove still carries significant risks, as 63% of resale transactions in the past decade resulted in losses. Nonetheless, for those genuinely desiring waterfront residences, such investments may bring satisfaction.
Looking ahead, some remain optimistic about the long-term development potential of Sentosa Cove's real estate. Ismail Gafoor, CEO of PropNex, mentioned the upcoming completion of the Greater Southern Waterfront and revitalization plans for Sentosa tourism products, which could inject new vitality into the region's real estate market.
