Ho Bee poised for growth as Sentosa’s recovery unfolds
It could reap up to $800m from unsold units.
Ho Bee land is poised for growth as Sentosa home prices recover, according to a report by RHB Research.
Analyst Goh Han Peng noted that although prices of residential units in Sentosa Cove had plunged sharply in the last few years, transactions are now picking up as buyers stepped up their buying amid a sense that prices have bottomed out.
For instance, The Oceanfront sold two condominium units in the $2000 psf range in April, a price not seen since October 2012 where a unit was sold at $2,190 psf.
Other projects in the enclave, from Seascape to The Coast and Turquoise, had also seen a pickup in transactions with done deals ranging from $1400-1600 psf.
“We think the play on Sentosa properties is still ultimately about the scarcity story, with a limited stock of some 2000 plus units. The biggest player there is Ho Bee Land, which clinched eight sites on the island since 2003 and have since sold most of the projects there, raking in $800m of profits which were recycled to acquire investment properties in Singapore and London,” said the report.
“Its remaining exposure in Sentosa is still substantial: we estimate its portfolio of completed units in Turquoise, Seascape and Cape Royale to be worth some $700-800m. Most of these units are currently rented out as management awaits a turn in the residential cycle,” the report added.