Foreign Buyers and Market Trends in Sentosa Cove
When fresh demand is not fast and furious enough
Singapore introduced the ABSD starting in April 2023 which is effectively an extra tax for all property buyers targeting foreigners. ABSD means: “Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).”
Maybe they just do not wish to see prices go out of hand. As usual, these measures were introduced to cool down the hot property market and indeed, it has done its job perfectly even if it’s not for all foreign property buyers. For the buyers of Sentosa Cove, it worked. New buyers are buying lower price than the sellers who bought those properties earlier prior to the ABSD.
- Sentosa Cove resale values declined in 2024-2025, with up to 66 per cent of transactions incurring losses, contrasting with Singapore’s overall rising property prices.
- Lack of new projects in Sentosa Cove and the 60 per cent ABSD for foreign buyers contributed to the price drop.
- Despite the decline, limited stock and waterfront living may attract long-term investors.
Read the full article with more details here: Article in straitstimes.com
Property Investment always carry with it some risks when it concerns foreign owners
Unlike local sellers who would do their best to hold out for a higher price versus the price they bought, foreign buyers are more willing to sell at a lower price especially if they have other targets in mind or maybe they want to move elsewhere because they are not Singapore citizens. ABSD could have been the reason why new buyers are unwilling to pay so high to buy that property and if these foreign owners want to get back their money to invest elsewhere, they will sell lower in order to sell faster.
This is why when we look at the property transactions in the whole of Singapore, the prices actually moved up. Latest report here: realestateasia.com “Here’s more from PropNex:
Prices of private residential property edged higher in Q3 2025, rising by 1.2% QOQ amid robust primary market sales. This follows the 1 percent QOA price growth in Qa 2025, and marks the second consecutive quarter where private home prices grew at a slightly faster pace. Taken together, the URA PPI has increased by a cumulative 3.1% in the first nine months of 2025 (9M 2025), based on the flash estimates. ” More details here: Latest report here: realestateasia.com
What’s next?
This is the forecast by DBS. “DBS forecast: S’pore to build up to 320,000 new apartments, prices expected to rise by 35 to 55%.”
Happy understanding that property investment is always long term. If one is looking for fast returns, do stay away.
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