Island gambles on attracting Chinese investors

Sentosa Island, a former fishing village off the coast of Singapore, is reinventing itself as a magnet for Asia’s megarich, with new casinos, a Universal Studios theme park and chic branded residences.

ResortsWorld Sentosa. Singapore

The Sentosa makeover is being spearheaded by a $4.4-billon project by Resorts World Sentosa. This saw the soft opening in March of Asia’s second Universal Studios and Singapore’s first casino, one of two gambling establishments planned for Sentosa this year.

This was followed by the commercial sale of 60 land parcels on a snaking range of residences under the glamorous W brand and a luxury W hotel is planned for early next year, complete with funky furniture, boutique chic and celebrity-attended parties.

“The introduction of the W residences will redefine the way we live and play,” says Kwek Leng Joo, managing director of City Developments Limited (CDL), which is co-launching the project with Starwood Hotels & Resorts.

The 228 private luxury properties on Sentosa are ready-built. Others, on the elite “Paradise Island” nearby, provide owners with a land parcel. The rest is up to them – within certain parameters – front fencing for instance is banned. Plots are selling for upwards of $7 million, or $1,800-2,200 per square foot.

According to Miguel Ko, chairman of Starwood’s Asia Pacific operations, the new residences represent “a sound investment that will allow Chinese investors to balance their portfolios”.

Local residential property prices, which are highly regulated by the Singaporean government, rose about 17 percent last year, he said.

While the jet-set lifestyle will remain a pipe dream for most, China’s rich-list are not being shy about snapping up private properties in Sentosa Cove, on the east coast of Sentosa, for investment and holiday purposes.

“Sentosa Cove is a unique and secure waterfront residential precinct,” says Jason Yeo, general manager of the company that is overseeing the cove. “It is the only address in Singapore where residents have the privilege of having their cars parked and yachts berthed alongside their property.” And while Sentosa is more of a hassle to access than Sanya in Hainan province, or the gambling enclave of Macao, in return it offers a strategic location in a more central business hub.

Tourist numbers to Sentosa hit a new high of 6.2 million last year, up 50 percent from five years ago, outstripping the population of Singapore by several hundred thousand.
The numbers mean that two in three tourists to Singapore these days is heading to Sentosa, which offers jaw-dropping underwater attractions and revamped beaches.

Around 22.3 million U.S. dollars was spent in the last year to rejuvenate its leisure offerings. This saw the addition of simulated surfing on a 10-foot barreling wave at Wavehouse Sentosa, kayaking and chartered boat trips at Azzura Beach Club, and Asia’s longest and steepest zipline.

Singapore has built up a reputation over the decades as a meticulously clean but uninspiring business center. Now tourism officials and property developers are praying the tiny island’s facelift will help re-brand Singapore, a country where foreigners account for almost four in 10 people.

Sentosa has already picked up on the theme of adrenal after-dark sports by building a luge (toboggan) track that opens at night – two years after Singapore launched Formula One’s first night race with significant marketing success.

While this may seem like taking your life in your hands, Sentosa’s developers hope to persuade you that investing there is extremely safe.

Thanks To : XINHUANET

• Can Singapore Support New Casino Resorts With roulette wheels spinning and jackpot machines already whirring in casinos throughout a dozen Asian countries, the inevitable question that springs to mind is: Will there be enough well-heeled customers...
• Singapore’s First Casino “Ready” to open Awaits Gaming License Genting Singapore Plc is ready to start operating Singapore’s first legal casino as soon as the city state’s government issues its gaming license, the company said today. Genting Singapore’s stock...
• Singapore’s Economic Growth Probably Exceeded 20% Singapore's economy probably grew more than 20 percent for a second quarter as rising exports boosted manufacturing output and the opening of two casinos spurred tourist arrivals. [/caption] Singapore's strengthening...

• Macau News April 2007 Wynn's Le Reve settlement Steve Wynn has settled an out of court settlement with Lloyd's of London over a Picasso painting he damaged. Repairs for the damaged painting, Le Reve,...
• UK financial picture continues to look bleak. Rumours have it that Bank of England governor Mervyn King may have had some serious explaining to do Chancellor Alasdair Darling as to why the consumer prices index went shooting...
• Macau News September 2007 ADB report says Macau in top five Macau was recently listed as one of Asia's top five economies by the Asian Development Bank (ADB). Hong Kong, Taipei, Singapore and Brunei...