Singapore’s uber-rich foreigners shun extravagance, spooked by wealth scrutiny

From Sentosa Cove properties to whiskies, rich foreigners are holding back on spending following a major money-laundering case and tax hikes

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Sentosa Cove private residential housing on Sentosa Island in Singapore in 2023. Photo: AFP

Published: 9:28am, 8 Aug 2024Updated: 10:49pm, 8 Aug 2024

For well-heeled foreigners and locals in Singapore, properties on Sentosa Cove are the ultimate symbol of opulence. In April, industry observers were stunned when prices of The Residences at W Singapore Sentosa Cove – one of the most coveted properties in the luxurious enclave – were listed 40 per cent lower than the sum quoted for their initial launch in 2010.

The dramatic fall in value of the high-rise condominiums is emblematic of a broader retreat among Singapore’s ultra-rich foreigners, who are ostensibly pulling back on extravagant spending amid heightened scrutiny of their wealth and property tax hikes.

This marks a stark contrast from 2021, when S$4.5 million (US$3.39 million) Sentosa Cove units were snatched up almost instantly, according to Angelyn Tan, a property agent specialising in luxury condominiums and homes.

“I introduced a high net worth elderly couple to Sentosa Cove [in 2021]. They did not know Sentosa had houses and were wowed by the spectacular view and purchased a unit right away,” she said.

Foreigners comprised a substantial proportion of homeowners in the exclusive tourist island of Sentosa, said Tan, who cited statistics from independent property research firm Square Foot Research indicating that foreigners owned around 22 per cent and 18 per cent of condominium units and landed homes in Sentosa, respectively.

Meanwhile, permanent residents owned around 27 per cent and 24 per cent of condominiums and landed homes in the enclave, respectively.

Sentosa Cove is the only enclave where foreigners can buy landed property in the land-scarce island state, which spans only an area of 730 sq km.