Tailwinds Ahead for Sentosa Cove as Market Recovers

Teh Siew Qi Senior Content Writer
PerspectivesMarch 19, 2025
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In the eyes of many homebuyers and market observers, Sentosa Cove properties may have seen much better days. However, the narrative may be shifting, as the tide looks to turn for these oceanfront homes.

Aerial view of Sentosa Cove homes, source: iStock images

Once touted as "the world's most desirable address", the market for Sentosa's non-landed private homes has been lacklustre after multiple rounds of cooling measures over the last decade. In particular, the additional buyer's stamp duty (ABSD), total debt servicing ratio (TDSR) framework, and tighter loan curbs have put a drag on the resort island's market activity.

To this end, some developers have held off sales previously, opting to lease the units until the time is right for them to be relaunched on the open market (e.g. The Residences at W Singapore Sentosa Cove, and Cape Royale).

Despite all that has been said, Sentosa Cove seems to be sailing out of rougher seas, as recent market data have showed signs of recovery. The rental yield on price quantum for Sentosa Cove non-landed private homes has shown consistent growth, from 2.8% in 2020 to 3.3% in 2024. The period from January 2024 to January 2025 saw the highest rental yield at 4.0% (see Table 1).

Table 1: Rental Yield on Price Quantum^ for Sentosa Cove Non-landed Private Homes

Project Name

2020

2021

2022

2023

Jan 2024 to Jan 2025*

CAPE ROYALE

N.A.

N.A.

3.0%

3.2%

3.2%

MARINA COLLECTION

1.8%

2.1%

2.3%

3.2%

2.0%

SEASCAPE

2.9%

2.2%

3.2%

3.5%

3.7%

SEVEN PALMS SENTOSA COVE

N.A.

1.6%

N.A.

N.A.

4.0%

THE AZURE

3.0%

3.4%

3.6%

4.1%

2.2%

THE BERTH BY THE COVE

3.0%

2.7%

3.2%

4.3%

3.5%

THE COAST AT SENTOSA COVE

2.8%

2.8%

3.8%

3.9%

3.9%

THE OCEANFRONT @ SENTOSA COVE

2.0%

3.3%

2.9%

4.3%

3.4%

THE RESIDENCES AT W SINGAPORE SENTOSA COVE

N.A.

N.A.

N.A.

6.3%

4.2%

TURQUOISE

3.2%

3.1%

3.6%

3.8%

3.0%

Overall

2.8%

2.6%

2.9%

3.3%

4.0%

Source: PropNex Research, URA Realis (*data up till 31 January 2025)^Rental yield on price quantum is a comparison between a project's average monthly rental quantum over a 1-year period against its average resale price quantum within the same year. The formula used: (average monthly rental x 12) / average resale price of the same 12-month period.

Table 2: Rental Yield on Price Quantum^ for CCR Non-landed Private Homes

CCR District

2020

2021

2022

2023

Jan 2024 to Jan 2025*

District 1

2.4%

2.3%

2.8%

3.7%

3.6%

District 2

1.3%

2.3%

2.5%

4.3%

4.0%

District 6 (CCR projects only)

0.6%

0.5%

0.7%

0.8%

0.5%

District 7 (CCR projects only)

1.9%

1.6%

2.7%

3.4%

3.7%

District 9

1.9%

1.9%

2.4%

2.7%

2.7%

District 10

2.0%

1.9%

2.3%

3.0%

2.8%

District 11

2.3%

2.2%

2.5%

3.1%

2.7%

District 4 (CCR projects only, Sentosa Cove^^)

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