Second unit at Turquoise put up for mortgagee sale this year

A 2,411 sq ft, four-bedroom unit at Sentosa Cove condominium Turquoise will be put up for mortgagee sale at the Knight Frank auction on March 20. The unit on the fourth floor has a guide price of $3.55 million ($1,472 psf) to $3.7 million ($1,535 psf). If it goes under the hammer, it will mark the fifth successful mortgagee sale at Sentosa Cove since 2017.

The 91-unit Turquoise has seen 13 transactions over the past five years, with seven being mortgagee sales. The most recent one involved the unit next to the subject unit. The 2,433 sq ft unit was auctioned for $3.59 million ($1,476 psf) on Jan 29. It was purchased at $6.29 million ($2,586 psf) in 2007, according to URA caveat data.

The Turquoise is a 99-year leasehold luxury condominium that was completed in 2010 (Pictures: Samuel Issac Chua/The Edge Singapore)

A mortgagee sale refers to a property that is put up for sale by a bank to recover the remainder of a loan from a borrower who has stopped making loan repayments to the lender. The most recent mortgagee sale of a Sentosa Cove condo unit was that of a duplex penthouse at The Berth by The Cove, which was sold on Feb 28. The 2,939 sq ft unit was auctioned at $3.25 million ($1,105 psf), $2.39 million (42%) less than the previous owner’s $5.64 million ($1,919 psf) purchase price in 2011.

Pent-up demand and palatable property prices at Sentosa Cove have resulted in a resurgence in buying interest in residential properties in the exclusive island enclave, says Sharon Lee, head of auction at Knight Frank. Potential buyers find that current prices at Sentosa Cove are increasingly attractive compared with the prices of luxury condo units in the prime districts and on the outskirts of the CBD. The psf price of non-landed property in Sentosa is between $1,500 and $1,600 now, and a home in Sentosa offers a more leisurely and tranquil lifestyle compared with one near the CBD, she says. Singaporeans’ perception of Sentosa Cove is now more positive, and they are willing to buy a home there, she adds.

Eight prospective buyers attended the weekend preview of the subject unit at Turquoise held on March 10 and 11. Most of them are Singaporeans or permanent residents, and more than one are looking to purchase the unit as a home, says Noelle Tan of Knight Frank, who is handling the sale. The south-facing unit has a view of the marina and three en-suite bedrooms as well as wet and dry kitchens. Based on a caveat lodged, the unit was purchased for $6.18 million ($2,539 psf) in 2007. It is the first time the property is being sold in a mortgagee sale.

The 2,411 sq ft unit at the Turquoise is south-facing and has views of the marina

Many owners at Turquoise bought their units at the peak of the last property boom, says Lee. However, she believes that owners with greater holding power are now less likely to relinquish their unit in a mortgagee sale.

Prices for non-landed residential properties at Sentosa Cove are expected to increase 5% to 10% by year end, and owners who can afford to hold on to their properties are likely to wait for prices to climb higher before putting them on the market, says Lee. However, rising interest rates in the future may temper demand and this will have a larger effect on buyers in the mass-market segment, she cautions.

In recent years, Sentosa Cove condos such as The Berth by The Cove (pictured), the Seascape and Turquoise have seen units sold via mortgagee sales

The auction, which will be held at Amara Singapore on March 20, will feature two other properties on mortgagee sale. They are a 3,755 sq ft, five-bedroom townhouse at the 99- year leasehold Palm Isles, which has a guide price of $2.45 million ($652 psf); and a 1,959 sq ft, three-bedroom duplex penthouse at the freehold Ventura View in Joo Chiat, which has a guide price of $1.75 million ($893 psf).

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