Year's first successful auction of Sentosa Cove home sold at S$2.4m loss

Berth By The Cove penthouse is a four-bedroom unit with a floor area of 2,939 sq ft

Fri, Mar 02, 2018

Lee Meixian

A TWO-LEVEL penthouse on the sixth storey of The Berth By The Cove has become the first mortgagee sale unit on Sentosa Cove to go under the hammer and be sold this year.

This took place at Edmund Tie & Company's (ET&Co) auction on Thursday. The property received five bids, and was eventually sold for S$3.25 million, or S$1,105 per sq ft (psf).

This was about S$2.4 million lower than what the last owner paid for the unit in 2011 - at S$5.64 million, or S$1,919 psf. It translates into a 42 per cent loss.

This is the fourth Sentosa Cove property on mortgagee sale that has sold for almost half of its initial purchase price since 2017.

Prior to this sale, the last one was a fourth-floor unit at Turquoise, which was first offered up for auction in December 2017. It subsequently sold for S$3.59 million via private treaty, a 43 per cent discount to its initial purchase price of S$6.29 million. The caveat was lodged in January this year.

Joy Tan, head of auction and sales at ET&Co, said the auctioned price of S$1,105 psf is "very reasonable" as recent transactions for comparable penthouse units in developments such as The Berth By The Cove, The Coast, The Oceanfront, and The Azure have been higher.

"Sentosa Cove properties are on the upward swing this past year, and we still see ready buyers looking to invest in good buys on the island. We expect another five units to be placed for auction for the rest of the year," she said.

The subject unit at The Berth By The Cove is a four-bedroom unit with a floor area of about 2,939 sq ft. The unit offers views of the marina and the landed enclaves of Paradise and Coral Islands. It includes a double-volume ceiling in the living area, private lift access and a private spa pool, ensuite to the master bedroom.

The development was completed in 2006 and has a total of 200 units, with a 99-year leasehold tenure with effect from 2004. Located on Sentosa's coastline, this condominium is one of the few developments on the island that offers residents 25 berths for their private yachts.

About 80 people attended the auction. No other property was sold at the auction. All the rest - including a four-storey, standalone JTC building on Joo Seng Road and a good class bungalow on Belmont Road - went into private treaty negotiation.