Luxury home sales shortage continues with only three Sentosa bungalows sold in 2014

Prices dropped a whopping 20%.

The pricey bungalows that line Sentosa’s shores are the pitiful poster child of Singapore’s luxury home sales slowdown. Data released by CBRE show that only three units were sold in Sentosa for the whole of 2014, a far cry from the 18 units sold in 2013.

The dismal sales was primarily due to the absence of foreign buyers deterred by the hefty 15% additional buyer's stamp duty payable by foreign buyer's stamp duty payable by foreign buyers.

The three bungalows were sold for an average price of $1,676 per square foot, reflecting a 20% year-on-year decline.

CBRE also noted that the large magnitude of the fall was partly due to the fact that all three bungalows face the waterway and not the open sea.

"In view of the persistent uncertainty in a global economy, CBRE Research expects sales activity in Sentosa Cove to remain tepid in 2015. Homeowners who are locals are allowed to lease out their bungalows while waiting for the market to recover," the report stated.