Sentosa minimum price a smart move

Sentosa Cove’s decision to announce the minimum reserve price for the land parcels to potential buyers and the media is a smart way of separating the haves from the have-nots and will also help to push up the price, say experts.  

The six highly-sought-after sea-front-bungalow land parcels will be up for grabs from this weekend. The minimum reserve has been set at $890 psf, and interest bidders need to submit their offers by Nov 14.  

“This move is aimed at seeding out those who are unable to make the cut. By announcing the minimum reserve, they are ensuring that the bids they receive are from those who are serious about the property and can afford to match and surpass the minimum reserve price set,” said Mr Nicholas Mak, director of consultancy and research at Knight Frank.  

The land parcels, located in Sentosa Cove’s gated Southern Residential Precinct, range between 746 sq m and 1,724 sq m.  

Mr Mak believes the move will benefit the sale of the land parcels. “With most of the land parcels on the Sentosa Cove sold, the price for the remaining available parcels can only go up.”  

This launch comes hot on the heels of the record-setting Oct 11 sale of six sea-front-bungalow parcels, where a high of $1,130 psf was achieved. The six individually-sold land parcels fetched an average price of $1,023 psf.  

Four of the six buyers were local and the other two were from Malaysia and Ireland. The previous record of $1,039 psf was set during Christie’s Great Estates Southern Precinct auction on Aug 25.  

On Oct 25, Sentosa Cove launched its final two islands: Pearl and Sandy Islands. Known to industry insiders as The Island Collection, the islands are also located in the Southern Residential Precinct.  

Each island can accommodate the development of 19 luxury villas. The Island Collection is the last parcel on Sentosa Cove slated for the development of luxury waterfront villas with private berths.  

Developers can either submit offers for Sandy Island, or for both Sandy and Pearl Islands, on Nov 22. The 13,512-sq-m Sandy Island commands a minimum reserve of $410 psf, while bids for both islands, with a total land area of 28,352 sq m, have a minimum reserve price of $403 psf.  

The decision to award the parcels will be based on price and will be announced in the weeks following the offer submission date. — Joseph Yadao  

Source: TODAY, 04 November 2006 

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