A bungalow in Singapore’s Sentosa Cove area sold for a record price per square foot amid signs of a housing bubble.
The bungalow built in 2007 on Ocean Drive was sold for $32.5 million, or $3,214 per square foot, on Oct. 12, according to sales records from the Urban Redevelopment Authority. The per-square-foot rate, based on the bungalow’s land area of 10,111 square feet, is a record, according to Nicholas Mak, the executive director at SLP International Property Consultants, a Singapore-based real estate broker.
“Sentosa has a limited number of very prime bungalows with sea views,” Mak said. “It is easier for a foreigner to buy a private landed house in Sentosa compared to other areas of Singapore.”
Singapore home prices reached a record high in the third quarter amid low interest rates, raising concerns of a housing bubble. The Monetary Authority of Singapore, the central bank, told banks on Oct. 5 to restrict home-loan maturities “to curb continued upward pressure on residential property prices,” in its latest attempt to avert a housing bubble.
Sentosa Cove is a high-end residential enclave built along the seafront and canals on the resort island by the same name south of Singapore. Sentosa Island is home to a casino run by Genting Singapore Plc and Universal Studios Singapore.
Home sales in the island-state rose 84% last month to 2,621 units, the highest in more than three years, as developers sold more apartments, government data showed.
Sales climbed 7.7% to 5,999 units in the three months ended Sept. 30 from the previous quarter, the data showed.
The property market may get “bubbly” even with slow growth and the government won’t allow prices to outstrip gains in incomes, Finance Minister Tharman Shanmugaratnam said at a conference in Hong Kong on Oct. 9.
The Business Times reported the sale earlier today. The buyer is a Malaysian citizen, while the seller is a Singaporean investor, the paper said without citing anyone.
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