Tag Archives: Singapore Property

Sale of Sentosa villa scrapped after China buyer arrested

The sale of a $23.8 million bungalow along Lakeshore View in Sentosa Cove was scrapped after the would-be-buyer was arrested for her involvement in a Ponzi scheme, reported The Business Times.

In October 2015, the owners of the luxury property granted an option to purchase to Zhang Min, President of China’s Yucheng Group, the parent company of Ezubao.

She exercised the option that same month and subsequently lodged a caveat in November to register her intention to purchase the bungalow.

However, the sellers weren’t able to contact her during the purchase deadline, and Zhang cancelled the caveat in February, shortly after it was reported that she was one of the executives of Yucheng Group and Ezubao who were arrested in China for swindling investors.

Ezubao was one of China’s largest online peer-to-peer (P2P) lenders that was recently closed by authorities after it amassed 50 billion yuan (S$10.8 billion) from around 900,000 investors. The company reportedly enticed victims to invest by promising them high interest rates of between nine percent and 14.6 percent, but most of the businesses and projects they were investing in turned out to be non-existent.

Experts estimate that Zhang would have forked out a five percent deposit of the property’s purchase price (about $1.19 million), which would have gone to the sellers after she failed to complete the deal.

If the transaction had gone through, the Sentosa villa would have fetched $23.8 million ($2,775 psf), based on its land area of 8,576 sq ft.

The property fronts the Serapong Golf Course and overlooks the sea. It sits on a site with a remaining lease term of 89 years (as of October 2015).

Since the deal didn’t materialise, the bungalow’s owners are once again looking for buyers. It is owned by three siblings from Hong Kong, one of whom is a Singapore citizen, while the other two are UK citizens.

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Many Singaporeans still dissatisfied with housing market

Many Singaporeans are still unhappy with the state of the local property market, according to PropertyGuru’s latest Property Affordability Sentiment Survey 2016.

About 44 percent of the survey’s 933 respondents reported being dissatisfied with the market. The main cause of unhappiness remains the sky-high property prices.

However, the majority of those polled believe home prices will stabilise or fall further in the next six months.

Meanwhile, 28 percent of respondents said they are satisfied with the local market, up from 26 percent during the same period in 2014.

Close to half of the respondents (48 percent) said they intend to purchase residential property in the next six months, up five percent from 2014. Their optimism is largely due to the good long-term prospects for capital appreciation.

At the same time, 42 percent of respondents feel the government is doing enough to make housing affordable, up nine percent from two years ago. About 68 percent support the government’s property cooling measures.

“(The) results show that although pricing concerns remain, the overall mood is more positive, with almost half of respondents saying they intend to buy this year,” said Steve Melhuish, CEO and co-founder of PropertyGuru Group.

“We know that finding your ideal property can be daunting, and without transparency or relevant information, the property-buying process can be frustrating and confusing. Through our regular surveys, research insights, tools and media-rich content, we aim to help millions of consumers make more informed and confident decisions every month,” he added.

Carried out in December 2015, the survey offers insights into the current mood and attitudes of property seekers here, and has been conducted regularly since 2009.

Read the full report here.