In Singapore’s prime districts, rents for some Good Class Bungalows (GCBs) have fallen from their stratospheric heights. A case in point is the GCB on Nassim Road, which was previously rented to Su Baolin, one of the 10 accused in the city-state’s biggest money laundering case, now worth a total of $3 billion. Su previously paid $120,000 a month for the GCB. According to sources, it was rented out for $60,000 a month in April.
Meanwhile, another GCB in Bishopsgate was rented to Vang Shuiming, another of the 10 charged with money laundering. It was rented for $150,000 a month, setting a new record for GCB rentals. Since his arrest in August 2023, the GCB has been vacated. It is still for sale, with Aric Lim, deputy district director of Huttons Asia as the marketing agent. The asking rent is still $150,000 a month.
Correction: An earlier version of the story stated that Bishopsgate GCB was leased. We regret this error.
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The new bungalow wing and 25m lap pool at the property at 4 Cable Road (Photo: Samuel Isaac Chua/EdgeProp Singapore)
However, owners are now more realistic about rents, says Shawn Wong, associate group director at PropNex, who is the sole marketing agent for a heritage-listed GCB at 4 Cable Road that rents for $60,000 a month.
The previous tenant, a Chinese technopreneur, had leased the Cable Road property in November 2021 for $57,000 a month.
It is said that he often entertained and had guests at home, which is why he had to have a professional cook in the house.
In June last year, the tenant wanted to extend the lease for another two years and agreed to a higher rent of $80,000 per month. However, he left Singapore with his family in August without renewing the lease.
The living and dining area in the new wing of the heritage bungalow at 4 Cable Road (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Adding a new wing
The owner of the heritage-listed GCB on Cable Road is a shipping magnate who wishes to remain anonymous. He bought the two-storey heritage-listed bungalow on a 1,500sqm plot from Straits Trading in 2006 for $10.2 million ($589 per sq ft), according to a caveat filed at the time.
In 2007, the owner added a new wing and swimming pool to the heritage-listed home. The result is an 11,000 sq. ft. home with seven bedrooms (six en-suite). The new wing includes a spacious new living and dining area on the first level and additional bedrooms on the second.
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Floor-to-ceiling glass sliding doors lead to the terrace and the pool area. In addition to the 25 m long pool, there is also a whirlpool as well as a shower and a changing room at the poolside. The driveway and the carport offer space for 15 cars.
Since the new wing was added in 2007, the property has been rented out at monthly rates between $40,000 and $50,000, Wong says.
The professional chef’s kitchen, one of two kitchens in the heritage house at 4 Cable Road (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Upgrade for $1.2 million
Three years ago, the owner decided to invest $1.2 million in renovating the property. The entire home automation system was overhauled, all the toilets were renovated, and even the kitchens were updated. A storage room next to the dining area was converted into a display and storage room for about 500 bottles of wine and spirits.
The house has two kitchens: one for everyday use and the second, a professional kitchen with high-quality fittings and appliances from European brands such as Liebherr refrigerators and a full range of V-Zug appliances, including dishwashers. An exhaust duct and a fan with a UV ozone chamber have been added to remove cooking smells. This is ideal for those who hire professional chefs when entertaining at home, says Wong.
In addition to the living and dining areas and the rear areas of the home, the first floor of the home contains an entertainment room and a guest suite. The second floor has a family room with a built-in pantry and five en-suite bedrooms, including the master suite and junior master suite. A multipurpose room is connected to the junior master suite and another en-suite bedroom. Wong adds that the multipurpose room can be used as a study, children’s recreation area, music room or dance studio.
After renovations, the heritage-listed GCB was put up for rent for $60,000 per month sometime in late 2021. Several parties expressed interest, but the highest offer came from a Chinese tech entrepreneur who came in as a tenant in November 2021 with a bid of $57,000 per month. However, the building has been vacant since he left last August.
The wine cellar and storage area (Photo: Samuel Isaac Chua/EdgeProp Singapore)
“In line with today’s market”
The heritage-listed bungalow has since been renovated and is available for rent again at the same rent of $60,000 a month. “There has been a lot of interest because the rent is in line with today’s market,” says PropNex’s Wong. “Since we opened for viewings two weeks ago, we’ve had two to three viewings every week.”
Potential tenants include expatriate executives of multinational companies, executives of private equity firms, co-founders of technology companies or entrepreneurs. Since the heritage-listed GCB at 4 Cable Road is in a prime area and is in “almost brand new” condition, offers are in the $52,000 to $55,000 per month range, Wong says.
“Multinational corporations are usually profit-driven and have a fixed budget for accommodation,” Wong adds. “This is very different from the rich Chinese, who can easily outbid everyone else.”
The lounge of the master suite of the bungalow at 4 Cable Road (Photo: Samuel Isaac Chua/EdgeProp Singapore)
He admits that activity in the upper end of the housing market has been subdued since the government cracked down on money laundering cases. “That’s why there is quite a lot of supply,” he adds.
Some GCBs that were previously listed at $100,000 a month in rent have now been marked down to around $65,000 a month, says Jacqueline Wong, managing director of Hardington Private, a niche consultancy for ultra-high-net-worth individuals and family offices. “The $50,000-$60,000 a month range is for the top executives of multinational companies,” she adds. “But such budgets are unusual.”
Given the more difficult business environment, the budget for top executives working abroad has been cut to between $20,000 and $30,000, depending on the industry, says Hardington’s Wong. She adds that top executives of multinational companies and senior embassy staff are likely to earn between $30,000 and $50,000.
Those willing to shell out rents between $60,000 and $120,000 are in a different league, according to Hardington’s Wong. “These are the very wealthy individuals who are starting a business or building a family office in Singapore,” she adds. “They are not typical renters.”
“Kosher money”
Alan Cheong, research and advisory director at Savills Singapore, reckons those willing to pay monthly rents of between $80,000 and $120,000 are also committed to the property they want to buy. “They’ve probably applied for their citizenship and are waiting for it to be approved before they buy,” he says. “These are people whose money is kosher. They could be billionaires from China, Hong Kong, Taiwan, Indonesia or other parts of the world.”
Such tenant lock-ins are a response to measures to cool the property market. “The 60% additional buyer’s stamp duty (ABSD) for foreigners motivates them to do this,” says Cheong. If they buy a property worth $60 million, a 60% ABSD means an additional $36 million, with an additional 6% or $3.6 million in buyer’s stamp duty, making a total purchase price of $99.6 million.
Property tax for high-end residential properties was raised this year to between 12 and 36 percent, making landlords less vulnerable to rent cuts. “This is causing rents to continue to fall,” says Cheong of Savills.
The new wing on the left and the original conservation bungalow on the right (Photo: Samuel Isaac Chua/EdgeProp Singapore)
PropNex’s Wong agrees, estimating that the owner of the GCB conservation area at 4 Cable Road pays over $200,000 in property tax annually based on the latest property tax rates.
In addition, maintenance costs for a heritage bungalow are higher than those of a conventional bungalow, says Wong, as the windows, doors, beams and floors upstairs are all made of wood. The house also needs to be repainted every few years to maintain its black and white facade. “The weather in Singapore – rain and shine – increases wear and tear costs,” he says.
Nevertheless, the owner of GCB at 4 Cable Road considers the property to be the crown jewel of his investment portfolio, which includes units and penthouses in condominiums such as Ardmore II, Beaufort Nassim, The Boulevard Residences and Nassim Park Residences.
After all, fewer than 100 of these listed bungalows are currently in private hands, says the owner.
Wong of PropNex: Owners are now more realistic about their rental demands (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The location of the heritage-listed bungalow at 4 Cable Road in the prime District 10 (Source: EdgeProp Landlens)
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