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AsiaOne
08-06-2025
- Business
- AsiaOne
The biggest misconceptions about buying property in Singapore's CCR in 2025, Money News
Singapore's Core Central Region (CCR) is as straightforward as HDB eligibility rules. Everyone thinks they have a good idea of how it works, until questions are asked and they look deeper. Then suddenly there are 50 exceptions to every rule, a dozen gaps in the online information, and a stunning realisation that you've been wrong all your life about something. This is pretty much how it works with CCR properties: on the surface, you think you know the region: it's that place with all the rich expats, tech moguls, and one old uncle who has holes in his singlet but owns a GCB in Tanglin. But with the Singapore property market pivoting more toward this mysterious region (and I assure you, the CCR is a mystery,) it's time to take a more nuanced look; and to realise that quite often, much of the "property knowledge" you've been told about the CCR is wrong, or grossly oversimplified: For those not in the know: What is the CCR? The CCR is the region that houses Singapore's most expensive real estate options, like The Sail, Marina One, Ardmore Park, and various other condos that are basically a property agent's retirement fund. Historically, this is an area favoured by high-net-worth individuals, foreign buyers, and investors, and it's not necessarily about money either. Investors may also buy "cultural capital" or clout, by owning prestige properties here. Projects here are usually freehold or 999-year leasehold. Districts include: District 1: Raffles Place, Marina Bay, Cecil District 2: Chinatown, Tanjong Pagar District 6: City Hall, Clarke Quay District 9: Orchard, Cairnhill, River Valley District 10: Tanglin, Holland, Bukit Timah District 11: Newton, Novena Sentosa: Not geographically central, but it's lumped into the CCR due to its high-end positioning. Why should we regular folks be paying attention to the CCR in 2025? I've linked the relevant article in the intro, but to quickly recap: around 22 launches remain for the year of 2025, and of these, around 14 will be in the CCR. If you missed out on the non-central launches like Parktown Residence, Emerald of Katong, ELTA, etc., then consider me the bearer of luxury news: your next new launch option is likely going to be in Singapore's high-end CCR. Even before this happened, back in 2023, I'd pointed out that Rest of Central Region (RCR) prices were narrowing with CCR prices. This was partly due to the 60 per cent Additional Buyers Stamp Duty (ABSD), which removed a good number of wealthy foreign buyers from the CCR market. Moving forward to today, the price gap between the CCR and RCR is at an all-time low of 4.5 per cent. Given that over half the upcoming new launches are going to be in the CCR, consider this early preparation of the sales pitch: we're going to hear, over and over again, that this is a "big opportunity" to own a CCR property; especially if you already have a Rest of Central Region (RCR) property to upgrade from. So here are the oversimplified beliefs to address about the CCR, before we're neck-deep in it this year: The CCR is the most prime region, you won't go wrong here CCR properties are all top luxury properties Freehold status makes CCR properties better The best amenities are in the CCR 1. The CCR is the most prime region, you won't go wrong here This has the same energy as "WeWork is so huge it can't fail at this point." The glamour and high quantum properties packed into the CCR do give the impression that everything there is infallible, but in reality, it's quite the opposite. I feel it's the cheaper Outside of Central Region (OCR) where it's often harder to make a mistake, as you're starting with lower initial costs. The CCR isn't just high quantum, it's possibly the most volatile of the three regions — and you need to be more careful when buying here, not less. The CCR isn't rock-solid and infallible: we saw this just last year. At year-end 2024, I pointed out that the CCR saw an 11.8 per cent price decline, as opposed to a 9.8 per cent increase in the OCR. And yes, this was due to the ABSD hike as mentioned above, but that demonstrates the point: Why didn't other regions see a big stumble from the ABSD hike? Because the OCR — and to a smaller extent the RCR — have their values tied to everyday Singaporean homeowners. The CCR is packed with investors, wealthy foreigners, and a more exotic demographic. Buyer and seller behaviours here are not as predictable as those of regular HDB upgraders. This also goes for rental: as of Q1 2025, the vacancy rate for completed private residential units in the CCR stood at 10.3 per cent, higher than the RCR's 6.6 per cent and the OCR's 4.7 per cent. For the first nine months of last year (2024), median rent for condos in the CCR declined by a chunky 3.5 per cent, unlike a small 1.4 per cent in the OCR, and a 0.4 per cent increase in the RCR. Why? Because when the wider economy is in turmoil, companies like to trim the number of pricey expats they hire, or shrink housing allowances. In the OCR, where expats or landlords are fewer in number, the effect is more muted. The RCR may even see a small boost, as expats move from the CCR into the city fringe as the next alternative. It's the CCR that's most subject to fluctuations in the wider economy. This doesn't mean the CCR isn't investment-worthy, but it does mean that you need to pick your properties with even greater care than elsewhere. So the opposite of the saying is true: a low-cost OCR property is usually where you can afford to make a mistake, but still recover. The CCR is much more punishing toward bad choices, and you absolutely can go wrong. 2. CCR properties are all top luxury properties For the newer properties in the CCR, sure. But for resale… Look, I say this with all respect, and I don't want to disparage any properties, but let's accept that age and time have somewhat changed the definition of "top luxury." How many of you have seen, say, The Claymore, Orchard Court, Lien Towers, or any one of the many older properties in the CCR? Even the ones near highly prestigious areas like Orchard Road? These projects can still be expensive because of their location, freehold status, and large floor plates. But if you were to compare facilities, there are 10-year-old condos in the OCR that make some of these "prime freehold" properties look like budget office buildings. This is a real problem that parts of the CCR — especially Districts 9 and 10 — will face over the coming years. At some point, buyers are going to look at the peeling walls of 1980s squash courts, then back at the price, and start wondering why Treasure at Tampines or some OCR mega-development won't be better. Simply put, "CCR = luxury" is a misconception. You might find mass-market, OCR projects today that are both cheaper and better for your lifestyle. 3. Freehold status makes CCR properties better Let's put it this way: no one on a pro-basketball team talks about their height much. Because when everyone else has that quality, it's far less special. In the same vein, freehold status can matter when it's rare in an area, such as one freehold condo amidst leasehold counterparts. But freehold is the norm in the CCR, and a freehold condo surrounded by others is little more than the baseline. So this shouldn't be a particularly big selling point, even on the brochures. 4. The best amenities are in the CCR A bit of personal opinion here: from the 1980s when I was growing up, through to around the mid-2000s, the CCR was truly the centre of Singapore. The malls here had brands you couldn't find in heartland malls, there were restaurants and eateries we'd travel all the way just to visit, and HMV was a big deal because we needed to fill half our room with physical CDs. This died around 2009, when Uniqlo opened its flagship store in Tampines instead of somewhere in Orchard. URA's aggressive decentralisation has created multiple hubs of amenities, and the CCR is no longer the centre of our universe. Ask around: most Singaporeans will tell you that whatever they can find in Orchard, they can find in their neighbourhood mall, be it NEX, Clementi Mall, JEM, etc. Now, there are parts of the CCR which are still arguably unique, like the Holland V identity node. But as Singapore decentralises further, we may one day reach a point where "superior amenities" are no longer a defining trait of many CCR neighbourhoods. It's worth thinking about, for long-term investors. So if you're looking at CCR properties in 2025, remember: prestige doesn't pay your mortgage, and clout doesn't cover vacancy. The only thing worse than overpaying for a "prime" unit is realising too late that you were buying into the idea more than an actual, viable asset. Again, this isn't to shut down the CCR as an investment prospect or a home; it's worked for many people. My intent is just to point out that, thanks to years of conditioning and sales pitches, we may have dangerously oversimplified a very complex region, going through some very big changes. [[nid:718515]] This article was first published in Stackedhomes .
Independent Singapore
06-06-2025
- Business
- Independent Singapore
Only 2 GCBs sold in Q1 2025—Singapore's lowest quarterly sales since 2019 despite 143 luxury homes sold
Photo: Depositphotos/ake1150sb SINGAPORE: Only two good-class bungalows (GCBs) were sold in Singapore in the first quarter of 2025 (Q1 2025), the lowest quarterly sales since the OrangeTee Group began tracking them in 2019, News Straits Times reported. The figure is also below the five GCB units sold in the same period last year and a sharp drop from the 31 units sold in Q2 2021. The number of GCB sales is also in contrast to the rising sales of luxury homes. In Q1 2025, 143 luxury homes priced above S$5 million were sold in central Singapore, up from 100 in the previous quarter. Christine Sun, chief researcher at OrangeTee, said GCB buyers might be waiting for interest rates to drop more this year or are waiting to see how US President Donald Trump's tariffs affect the market. She noted that strong sales in 2021 came from pandemic uncertainties, which pushed wealthy Singaporeans to buy these properties to park their wealth. Currently, in land-scarce Singapore, there are only around 2,800 GCBs, which Ms Sun described as 'safe haven assets during macroeconomic uncertainties'. GCB properties must sit on at least 1,400 square metres (sq m) of land, and the bungalow cannot occupy more than 40% of the plot. GCBs are mainly available to Singapore citizens and permanent residents (PRs). However, foreigners can purchase them with permission from the government, which is rarely granted. Last year, a minister said that no foreigners had been granted permission to buy GCBs since 2021. OrangeTee reported 44 GCBs were sold in 2022, 21 in 2023, and 30 in 2024. /TISG Read also: 72 luxury condos sold for S$611.4 million in Q1 2025, more projects to launch in the coming months Featured image by Depositphotos (for illustration purposes only)
Straits Times
03-06-2025
- Business
- Straits Times
From Haidilao tycoon to Jack Ma's wife: Billionaires who bought 8-figure Singapore properties
Zhu Su, co-founder of disgraced crypto fund Three Arrows Capital, bought the S$48.8 million GCB at Yarwood Avenue in March 2022. PHOTO: ST FILE From Haidilao tycoon to Jack Ma's wife: Billionaires who bought 8-figure Singapore properties SINGAPORE - Singapore's top-end real estate has been a must-have for billionaires and multi-millionaires seeking a safe haven amid a tanking US dollar and dark clouds over global markets. Demand is likely to persist as more ultra-rich and family offices locate here, in line with the Republic's push to be a wealth hub. Realstar Premier's managing director Julian Yip said more buyers are also emerging from the crypto sector, likely driven by the industry's recent performance. When money is no object, Singapore's Good Class Bungalows (GCBs) – of which there are only about 2,700 – seem to be the most coveted. Steve Tay, executive director of Steve Tay Real Estate, said that buyers see this rarefied segment as a long-term wealth preservation hedge against short-term volatility. Here are some notable Singapore property purchases snapped up by the super-rich in recent years: Public Bank founder's daughter breaks a record deal for Tanglin GCB (2025) Diona Teh, daughter of the late Public Bank founder Teh Hong Piow signed a $93.9 million deal for a Tanglin Hill GCB in 2025. The new GCB spans 2,756 square metres, with two storeys, and has a 25 m pool with a tanning deck, walk-in wine chiller and an 18-seater theatre. Koufu founder's sons snaps up Caldecott Hill GCB (2025) In May 2025, food and beverage company Koufu Group husband-and-wife founders Pang Lim and Ng Hoon Tien's two sons were in a deal to buy a Caldecott Hill GCB site for $58 million. The GCB has a freehold land area of 39,276 sq ft containing two bungalows separated by a low wall. One bungalow has two storeys and a garden, with the other has two storeys, an attic an a swimming pool. The property was formerly owned and bought in the 1960s by Chan Kok Kwan, a famous diamond merchant and has housed three generations of his family. Wilmar chairman's nephew snags Astrid Hill GCB (2024) In 2024, Glenn Kuok, a nephew of Wilmar International chairman and CEO Kuok Khoon Hong, bought a $49 million bungalow in Astrid Hill with his mother, Lee Yong Lah. Jack Ma's wife buys 3 shophouses in Tanjong Pagar (2024) Three adjoining shophouses in Tanjong Pagar were bought by Zhang Ying, wife of Alibaba Group co-founder Jack Ma. Ms Zhang, a Singaporean, paid $45 million to $50 million for 70, 71 and 72 Duxton Road. The three properties stand on commercial-zoned sites and have 99-year leasehold tenures starting from September 1988, with a balance of around 63.5 years. They each have three floors and an attic, with a combined plot of 3,239 sq ft. Ms Zhang is believed to have also bought a GCB in the Astrid Park area via a trust for more than $80 million in 2023. Wife of Sea's Forrest Li bags couple's second bungalow (2024) Ma Liqian, wife of Forrest Li, who owns New York-listed Sea, was in 2024 said to be buying an old GCB next to one that her tech billionaire husband acquired years earlier and nearly finished redeveloping. Ms Ma's purchase of the $42.5 million bungalow is the couple's second GCB on Gallop Road near the Singapore Botanic Gardens. Both properties are part of the Gallop Road/Woollerton Park GCB Area. The property was sold by the children of the late kidney doctor Gordon Ku, who founded the Kidney Dialysis Foundation. The couple are Singapore citizens, though Mr Li hails from Tianjin. Wee family scion scoops up multi-million dollar mansion from ex-Keppel CEO (2024) Grant Wee (formerly known as Grace Wee), the grandchild of the late UOB patriarch and banking veteran Wee Cho Yaw, was said to be buying a $39.5 million GCB in Ford Avenue, off Holland Road, in 2024. Grant Wee is the youngest child of UOB chief executive Wee Ee Cheong, the late Mr Wee's eldest son. The co-owner of the 19,500 sq ft mansion being sold was Choo Chiau Beng, the former CEO of the company now called Keppel and Singapore's non-resident envoy to Brazil. Subsequently in 2024, Wee Boo Tee, a nephew of the late Wee Cho Yaw bought a $23 million old two-story bungalow with a land area of 15,121 sq ft. First Resources family buys four Nassim Road bungalows (2023) The family behind Singapore-listed palm oil group First Resources scooped up four Nassim Road bungalows in the span of a few months in 2023. Singaporean members of the Indonesian Fangiono family bought a trio of GCBs from Cuscaden Peak Investments for $206.7 million. Cuscaden Peak Investments was formerly known as Singapore Press Holdings before its May 2022 privatisation. Separately, another Singaporean member of the family bought a fourth bungalow on the same street from a low-profile property investor, at $88 million. The combined cost of all four properties neared $295 million. Haidilao tycoon buys Cluny Hill GCB (2022) Sean Shi, a co-founder of Haidilao International, China's largest hotpot chain, bought a Cluny Hill GCB from the late Dr Lee Wei Ling – the daughter of founding prime minister Lee Kuan Yew and sister of Senior Minister and former prime minister Lee Hsien Loong – in 2022. Mr Shi paid $50 million for the freehold property. The price worked out to $2,740 per square foot (psf) on the 18,255 sq ft land area. At the time, this was less than that for similar properties in the area, as market watchers said property in the Cluny Hill GCB area could fetch around $3,000 to $4,000 ps f. The property is located in the vicinity of Haidilao chairman and co-founder Zhang Yong's Gallop Road GCB. Both properties are within walking distance of the Singapore Botanic Gardens. Failed crypto fund co-founder Zhu Su bags Yarwood GCB (2022) The co-founder of disgraced crypto fund Three Arrows Capital (3AC), Zhu Su, bought a $48.8 million GCB at Yarwood Avenue in March 2022. The bungalow was used as an urban farm managed by a company co-founded by Zhu's wife Evelyn Tao, who conducted guided tours and private dining sessions at the site from early 2023. In 2020, Ms Tao purchased a GCB at Dalvey Road, near the Singapore Botanic Gardens, for $28.5 million. She sold it for $51 million in 2024, despite a court-imposed freeze on some of the couple's assets. Kelly Chen, the wife of 3AC co-founder Kyle Davies, bought a bungalow in Ridout Park area in 2021 which was last reported to be in the process of being sold for $37 million. Nanofilm founder's wife buys GCB from Sinar Mas co-founder (2021) Jin Xiao Qun, the wife of Singapore-listed Nanofilm Technologies International's founder Shi Xu, purchased a Nassim Road GCB for $128.8 million. The seller in the deal was Sukmawati Widjaja, a member of the Widjaja family who co-founded the family-controlled Sinar Mas Group with her late father Eka Tjipta Widjaja. E-commerce platform founder picks up GCB (2021) The founder of Singapore-based e-commerce marketing platform Tommy Ong, reportedly splashed $63.7 million on a GCB at 2 Cluny Hill in 2021. Mr Ong's purchase of the property at $4,291 psf for 14,844 sq ft of land area marked a landmark deal for 2021 – a year that recorded two GCB sales at more than $4,000 psf. It surpassed a previous record GCB psf price set by Jin when she bought the Nassim Road GCB. Hedge fund founder picks up Chinatown shophouses at S$25m (2021) Ray Dalio, founder of prominent hedge fund firm Bridgewater Associates, snapped up two shophouses along Club Street in the historic Chinatown area in 2021. The Dalio Family Office paid $25.5 million for 44 and 46 Club Street. Mr Dalio announced the opening of a Singapore family office in 2020 to run his investments and philanthropy in the region. Taiwanese family behind Want Want buys Orchard condo tower (2021) All 20 units at a freehold luxury condominium development in the Orchard area were snapped up by the Tsai family of Want Want cracker fame. Two members of the Taiwanese family behind snack food giant Want Want China Holdings paid $293 million for the entire Eden Tower of the development at 2 Draycott Park. Secretlab CEO bags GCB and penthouse (2021) Gaming chair company Secretlab co-founder Ian Ang bought two luxury properties for $51 million in the span of just one week. In 2021, the Secretlab CEO reportedly acquired a $36 million GCB at 27 Olive Road in the Caldecott Hill Estate. That same week, he bought a $15 million triplex penthouse at Leedon Residence near the Singapore Botanic Gardens. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
26-05-2025
- CNA
Jail for 3 men who worked in 'clubhouse' at rented Good Class Bungalow along Victoria Park Road
SINGAPORE: Three men conspired with others to run a rented Good Class Bungalow (GCB) as a clubhouse along Victoria Park Road in Bukit Timah. Cambodian Su Wenhui, 44, Chinese national Su Zhentan, 40, and Singaporean Wu Pengfei, 35, each took up roles in the makeshift-clubhouse operation, which was against rules that the GCB be only used as a private residence. The three conspired with property agent Koh Hui Ming and Wu Guojing, a 33-year-old Cambodian, to run the scheme. The latter left Singapore in July 2023 and is at large. Koh, a Malaysian and Singapore permanent resident, has been charged and her case is pending before the courts. Wenhui was given four months' jail, while Pengfei and Zhentan received two months' jail each on Monday (May 26), after each pleaded guilty to their respective charges. Wenhui pleaded guilty to one count of cheating and one count of moving more than S$20,000 (US$15,600) out of Singapore without accounting for it to an authorised officer. One count of working at the clubhouse without a valid work pass was taken into consideration for his sentencing. At the time of the offences, Wenhui had an employment pass registered under SG Eastcode, of which Guojing was the director and shareholder. However, Wenhui did not do any work for SG Eastcode. Pengfei and Zhentan each pleaded guilty to one count of cheating. Zhentan also had an additional charge of working without a valid work permit considered for his sentencing. At the material time, Zhentan had a work permit registered to Wingo Ecommerce, but he never worked for it. ACCUSED PERSONS' ROLES Guojing was the overall operator and financier of the "clubhouse", which was for his friends and business associates. Those who stayed there could gamble and use its facilities, including a swimming pool and pool table. Guojing would settle the salaries of "staff" at the clubhouse, its operation costs and its monthly rental of S$58,000. The source of his wealth is unknown, according to court documents. Wenhui, Guojing's trusted associate, was the clubhouse manager who oversaw its daily operations. In exchange, Guojing gave him money and paid his monthly rental of S$30,000 for a property located along Watten Estate Road, the purchase of cars and other expenses. Zhentan was the chef and treasurer who worked exclusively at the illegal clubhouse, earning 18,000 yuan (US$2,500) a month. As treasurer, he would keep track of expenditures and request for cash when needed. A sum of between S$50,000 and S$100,000 would be handed to Zhentan every five to ten days. While he suspected the money was from illegal sources, Zhentan never questioned its source. Pengfei was one of the four drivers who would chauffer guests, earning S$5,500 a month. He too, did not question the source of the funds for the clubhouse. Apart from these men, two coaches provided pool and golf lessons, two masseurs provided massage services and two foreign domestic helpers also worked at the GCB. HOW THE CLUBHOUSE CAME ABOUT Around February 2023, Guojing and Wenhui engaged Koh as their property agent to rent a residence to use as a clubhouse. The duo eventually rented another unit at Garlick Avenue for S$125,000 a month. Pengfei and Zhentan were hired to work at this property in July 2023. In February 2024, Guojing decided to move the clubhouse operations to a place with a cheaper rent and Koh was called on to source for a suitable place. She found the Victoria Park Road property, which was registered under Victoria Park Trust and up for rent. Wenhui viewed the property and directed that it be rented under Pengfei's name, under the pretext that Pengfei wanted his family to reside in it. As Pengfei was Singaporean, he would be less likely to arouse suspicion, Wenhui thought. Koh initially faced difficult queries from one of the two property agents managing the rental listing for the GCB, including queries on Pengfei's background and occupation. Koh then decided to approached the second property agent instead. She lied that Pengfei was a business owner of a food and beverage company and that he would reside there with his wife and child. Koh made a profit of S$26,000 in commission from the brokering the rental agreement, which she used to pay a deposit for a condominium unit. INVESTIGATIONS On Aug 17, 2023, Wenhui was stopped for checks by police at Changi Airport, when he arrived in Singapore and was scheduled to fly to Manila. A search revealed that he had the equivalent of S$22,008.55 in cash which he did not declare in accordance with the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. Court documents did not shed light on how the clubhouse operations unravelled, but at about 1.20am on May 18, 2024, a police raid was conducted at the Victoria Park Road property.
AsiaOne
13-05-2025
- Business
- AsiaOne
Family of Koufu Group founders to buy Caldecott Hill GCB site for $58m, Money News
A Good Class Bungalow (GCB) site in the Caldecott Hill Estate is set to be purchased for $58 million by the sons of Koufu Group founders Pang Lim and Ng Hoon Tien, reported The Business Times. The freehold site located at Joan Road occupies 39,276 sq ft of land and costs $1,477 psf. There are two bungalows occupying the regular-shaped plot within the prestigious Caldecott Hill enclave in District 11, which is one of 39 gazetted GCB areas in Singapore. The property was initially purchased in the 1960s by Chan Kok Kwan, the former president of the Diamond Importers Association of Singapore, and housed three generations of the Chan family. It was recently rebuilt around 2000, with one of the two-storey bungalows being occupied by the Chan family. The second bungalow, which also features an attic and a swimming pool, is tenanted, according to a release in April 2024 by real estate company Cushman & Wakefield. The GCB site had been marketed through an expression of interest exercise in May 2024 by the firm at an indicative price of $62.8 million ($1,599 psf). The property's close proximity to shopping malls, hospitals, renowned educational institutions and MacRitchie Reservoir was highlighted in the press release. It is also within walking distance of Caldecott MRT station. The GCB site is also "highly sought after by ultra-high net worth individuals to build their dream home for multi-generation families", said Shaun Poh, Cushman & Wakefield's executive director of capital markets, in the release. He added that with a plot depth of about 95m and and a width of about 42m, the property can also be redeveloped into a single massive GCB, or split into two separate GCBs, subject to approval. According to The Business Times, the real estate sale is still in its early stages and is being brokered by Realstar Premier. A check on URA's caveat records shows that the last GCB sale in Caldecott Hill Estate was completed in August 2023, with an 11,082 sq ft property at Caldecott Close sold for $22 million. [[nid:713431]]
