The lost decade of Sentosa Cove, Singapore’s billionaire haven

SINGAPORE (Sept 19): Sentosa Cove, a residential enclave nestled on an island off the coast of Singapore, is quiet at the best of times. Of a weekday, its frangipani-lined streets are mostly devoid of life, save the odd domestic helper taking her four-legged charge out for a walk.

The stillness, however, belies the real estate shuffling taking place behind the scenes. Property listings here have been rising. But unless you’re buying, there’s no cause for celebration: sellers are stomaching losses as steep as 40%. Average prices are down almost 30% from their 2011 highs, a far more severe slump than in prime central London areas reeling from Brexit.

As luxury real estate markets boomed across Asia-Pacific over the past decade -- from Hong Kong’s famed Peak to the seaside mansions of Sydney -- Sentosa Cove stands out as a rare cautionary tale about the perils of international property speculation. The hot money from a commodities frenzy that peaked about seven years ago has fizzled, and millionaires’ preferences have shifted toward other areas on Singapore’s mainland.

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