First, SGs kena anti-SG policies by the Ass Loon son and in the job market. Now kena similar shit from property developers. All in their own country. Donch comprain for 60% voted for it!
PRC BUYERS OF LUXURY CONDO GET EXTRA STAMP DUTY SUBSIDY
Post date:
26 Oct 2014 - 11:10pm
A TRS reader sent an online article to TRS to inform us that a Singapore-based real estate company, GuocoLand, is giving “nationality-based discounts” for Chinese nationals to purchase properties at the Goodwood Residence.
Apparently, GuocoLand has launched a ‘Goodwood Open House’ from October 1 to 7, to coincide with the Chinese National Day, so that while Chinese Nationals come to Singapore to holiday, they would be able to visit the open house to buy properties at the Goodwood Residence. Shuttle-bus tours around the residence were also provided.
It was said that to celebrate the Chinese National Day, GuocoLand created a ‘National Day Special Offer’ tailored just for Chinese nationals.
Chinese nationals who buy a property would have an “extra stamp duty subsidy” thrown in for them as well.
This article that was sent to us was originally published on a website, known as ‘Singapore Eye (Xin Jia Po Yan’. Chinese nationals who were interested in the Goodwood Residence were encouraged to contact ‘Singapore Eye’ at xinjiapoyan@yahoo.com.
But Goodwood Residence is not just any high-end property in Singapore. Goodwood “sits on a prime 2.5 hectare freehold”. GuocoLand advertises the property as being “a mere 5 minutes’ walk away from the Newton MRT station and is a short stroll away to Orchard Road” and is “Surrounded with reputable local and international schools”.
Goodwood also represents the epitome of luxury living, where “all 210 units of Goodwood Residence feature private lifts that open directly to the units’ lobby. Each lift lobby is furnished with a set of relaxing lounge sofa, coffee table and personalised lockers for residents to store their golf or fishing equipment.”
Goodwood also "shares a 150-metre bondary with the expansive Goodwood Hill conservation area".
In short, Goodwood is built to be a top-notch private luxury residential in Singapore.
But not only that, buyers at Goodwood will also live next to very well-known neighbours.
The largest unit in Goodwood, the penthouse, was bought by Malaysian tycoon Quek Leng Chan for $18.8 million.
His brother, Leng Hai, bought another penthouse for just over $13.8 million. A sister, Guat Kim, bought an eighth-floor apartment for $6.03 million and another sister, Lay Liam, bought a ninth-storey unit for $7.46 million.
Of note, Mr Quek Leng Chan is also the Chairman of GuocoLand, the developer of the Goodwood Residence, which he bought.
Also, the Kuwait Finance House bought 36 units in June 2008 at an average price of $2,800 unit.
In 2010, two-bedroom apartments (of about 1,100 sq ft) cost an average of about $2.8 million. Fourt-room units cost an average of $7.5 million. The average transaction price was $2,409 psf.
Earlier this year, another penthouse was sold for a staggering $16.6 million. The purchase was made by a Singapore-based middle-aged foreigner.
Not only is GuocoLand the developer for this key luxury complex in Singapore, it is also the developer for another of Singapore’s landmark luxury development – the Clermont Residence (TP180) Tanjong Pagar Centre, which will be Singapore’s tallest building when it’s ready, at 290 metres tall. Its website says that, “The Employees Provident Fund (EPF), the premier pension fund in Malaysia, holds a 20% stake in Tanjong Pagar Centre.”
But what is perhaps the most interesting titbit about GuocoLand is that Mr Abdullah Bin Tarmugi also sits on its Board of Directors.
For those of you who remember, Mr Abdullah was a Member of Parliament (MP) from 1984 to 2011. He also held a number of ministerial positions and his last-held post was as the Speaker of Parliament.
Another director, Ms Jennie Chua Kheng Yeng, is also a Deputy Chairman of Temasek Foundation and used to be with CapitaLand Malls, which is also owned by Temasek Holdings, which set up the Temasek Foundation.
TRS has not been able to confirm if the “extra stamp duty subsidy” indeed was transacted. According to the reader, he had tried to email the originator of the article for clarifications but they have been “dodging his queries on this”.
According to the Inland Revenue Authority of Singapore, the “Seller's Stamp Duty (SSD) payable on residential property” is as high as 16% of consideration or value.
An “extra stamp duty subsidy” would give a considerable discount.
The question is, if ex-MP Abdullah and the Deputy Chairman of Temasek Foundation are also directors on Guocoland, if indeed such a “subsidy” was provided, do they have an obligation to Singaporeans to report on the situation, or to prevent such a situation from happening.
It is understood that when the Quek family bought units at the Goodwood Residence, no “discounts” were given.
However, with the revelation of a possible “extra stamp duty subsidy”, such a scenario poses questions as to the transparency of residential transaction in Singapore. Many Singaporeans would remember the Nassim Jade Scandal and the discounts given to Lee Kuan Yew and his family, which led to a public outpour of anger.
The revelation on the Goodwood mystery thus puts to question once again the fairness of residential purchase in Singapore.
A report earlier this year revealed that purchases by foreigners (not including Singapore permanent residents) of private residential property of more than $5 million continued to be strong – 106 units were sold in 2012 and 2013 each. This is in contrast to the purchases by Singapore PRs which fell by 27 percent to 113 units and by Singaporeans which fell by 44 percent to 273 units in 2013.
Thus foreign buyers seem to be a hot potato for developers in Singapore, which seem to be very eager to chase their money, even to the extent of giving away “extra stamp duty subsidies”.
It was reported earlier that because GuocoLand was able to increase its sales for the Goodwood Residence in the fourth quarter, it was able to see a jump in its profits, from $40.5 million last year to $304.2 million this year. Its revenue increased by 85 percent to $1.25 billion.
If so, it seems that there is more than meets the eye for the Goodwood mystery.
Where the recently-released real estate statistics still show private apartment and condominium prices as still being high, this situation is problematic when it is uncertain as to how price fluctuations are being determined from such sales tactics.
Related:
Nassim Jade Scandal