A slowdown in the prime property market in Singapore has prompted a handful of developers to ask for extensions on their projects in the high-end Sentosa Cove. One developer has been granted a one-year extension.
The residential properties on the resort island of Sentosa are aimed at providing luxury waterfront living. But prices have been hit amid the property slump in Singapore.
There are 1,700 residents in Sentosa Cove but the number will grow to about 3,000 by the end of the year.
These high-net worth residents come from over 21 countries like Ireland, China, Indonesia and Russia. Forty per cent of the residents are Singaporeans.
Sentosa Cove is seen as one of the most sought-after addresses in Singapore, and at their peak, units there were retailing at about S$2,000 per square foot.
But the global slowdown has forced prices to come down by half, prompting some developers to ask for relief.
Sentosa Cove’s general manager, Jason Yeo, said: “Developers are seeking for some flexibility in completion period. There are already live-in populations and they have to live with some construction activities, so it’s how we balance between developers’ needs as well as residents’ needs.”
Landed properties are given a four-year completion period while condominiums get five years.
Sentosa Cove says it will review requests for extensions on a case-by-case basis. But it is confident that all 2,100 units will be completed by 2014.
Sentosa Development Corp’s board member, Low Teo Ping, said: “When we selected the developers, it was not just based on price itself but on the track record and also the experience and the credibility of the developers. So that’s our first line of defence. So far, it has only been a handful of developers who have actually requested for some consideration.”
Sentosa Cove will spend some $300m to improve the island’s infrastructure over the next decade.
Mike Barclay, CEO of Sentosa Leisure Group, said: “We’re doubling capacity on the causeway into the island. There’ll be three lanes in each direction, and that will be up and running in about six months’ time.
“We’ve bought two new trains, we’ll increase capacity by about 50%. We’ll love to get a ferry service running from the waterfront. So we’re in discussions with the MPA (Maritime and Port Authority of Singapore) and the cruise centre to see if this is viable.”
Total land sale on Sentosa Cove reaped some $5.1 billion in investments.
Source : Channel NewsAsia – 24 Apr 2009