By Low De Wei
(Bloomberg) — A luxury penthouse in Singapore used to be one of the city’s most coveted properties, but that’s all over now: A condo with an asking price of nearly $12 million failed to find a bidder this week.
No offers were received for the five-bedroom suite in the St. Regis Residences with a private pool and 180-degree panoramic views at the third auction held by real estate agent Knight Frank on Thursday, even though the price had been reduced by 14 percent to 15.5 million Singapore dollars (11.5 million dollars) compared to the start of the year.
The property, owned by the son of Indonesian billionaire Tahir, is one of many luxury homes that have struggled to sell in Singapore’s property market, which is burdened by a 60 percent stamp duty on foreign buyers and a crackdown on money laundering, measures that have kept purchases by the super-rich to a minimum.
Developers such as City Developments Ltd., which built the St. Regis Residences over a decade ago, have seen their share prices plummet as a result. Other projects are faring little better. Cuscaden Reserve, a luxury project near the Orchard Road shopping district, has slashed prices by a fifth, with nearly 70 percent of its 192 units still unsold.
The unease was palpable at the auction, conducted by Knight Frank. In a largely empty room with fewer than 20 visitors, none of the 16 properties for sale received a public bid – including multi-million dollar oceanfront villas with amenities such as private pools and elevators.
According to land registry records, the 621-square-meter apartment in the St. Regis belongs to Jonathan Tahir. The Indonesian is chairman of MYP Ltd., a real estate investment firm based in Singapore. He is a scion of the Tahir family, whose conglomerate Mayapada Group is active in everything from banking to healthcare.
This was the last chance to sell the property at auction. It must now be sold privately. There were two offers before the auction, both below the guide price. It was one of two houses in the development that were for sale. The other was a sixth-floor apartment owned by a subsidiary of MYP.
©2024 Bloomberg L.P.
