S$25.3 Million Penthouse Draws No Bids in Singapore Money-Laundering Asset Sale

A three-storey penthouse at Singapore’s South Beach Residences drew no bids when it went to auction on September 23 with an opening price of S$25.3 million. The apartment, with its private lift lobby and roof terrace, was withdrawn after about five minutes, CNA reported from the auction. The property was part of the asset sale arising from Singapore’s S$3 billion money-laundering case.

Four of the 26 properties linked to the case that went to auction in the third quarter sold for a combined S$16.3 million, according to Knight Frank’s quarterly report, released on October 26. Two were two-bedroom apartments at Martin Modern; the other two were four-bedroom units at Wallich Residence. All four sold below their opening prices.

CNA reported that a 17th-floor Martin Modern apartment fetched S$2.08 million, roughly S$160,000 less than its opening price of about S$2.24 million. A 61st-floor apartment at Wallich Residence sold for S$6.6 million, S$180,000 below its S$6.78 million opening price.

Across Singapore’s major auction houses, nine of 163 properties listed in the quarter sold under the hammer, a success rate of 5.5%. The four sales linked to the case accounted for about two-thirds of the market’s S$24.1 million auction turnover. Knight Frank said buyers continued to weigh each property’s location, condition and price.

Deloitte is managing the sale of the forfeited assets on behalf of the Singapore Police Force. Its sale announcement lists more than 80 properties for sale. Auctions are being handled by SRI, Edmund Tie & Company and Knight Frank. List International Realty is seeking expressions of interest for selected properties. The assets are being offered in stages through mid-2027.

Under Singapore’s stamp duty rules, foreign individuals who do not qualify for relief pay a 60% additional buyer’s stamp duty on a home purchase, on top of the standard buyer’s stamp duty charged at graduated rates. Both taxes are calculated on the higher of the purchase price and the property’s market value.

At a hypothetical sale price of S$25.3 million, with the same market value for tax purposes, a foreign buyer without relief would pay S$15.18 million in additional buyer’s stamp duty and about S$1.46 million in standard buyer’s stamp duty. Including the property price, the bill would come to about S$41.94 million, before legal fees, loan interest and other costs.

A Singapore citizen buying a first home at the same price and valuation would pay only the standard buyer’s stamp duty. The property and tax would cost about S$26.76 million, S$15.18 million less than for the foreign buyer without relief. Foreign buyers eligible for relief under Singapore’s free-trade agreements can apply for the same additional buyer’s stamp duty treatment as citizens.

Unsold properties may return to auction or be sold through negotiations with bidders or an expressions-of-interest process, Home Affairs Minister K Shanmugam said in a written parliamentary reply on October 6. He said police, Deloitte and the appointed sales agents would review the results and choose how to sell each property based on commercial and market conditions.