Luxury Mansion Owned by Tang Dynasty Heir Sees Historic Price Cuts Amid Cooling Deman

Luxury Mansion Owned by Tang Dynasty Heir Sees Historic Price Cuts Amid Cooling Demand

October 18, 2024

CONDOsingapore.com

A sprawling Good Class Bungalow (GCB) in Singapore’s exclusive Victoria Park area, owned by retail magnate Tang Wee Kit, has undergone its second price reduction this year—slashed by S$7 million to S$73 million — amid tepid interest from local buyers grappling with high interest rates and property taxes.

Asking Price Timeline:

June 2024: Initially listed at S$83 million.

August 2024: First reduction to S$80 million.

October 2024: Further cut to S$73 million (total discount: S$10 million).

Property Features:

Land size: Over 0.28 hectares (30,000 sq ft).

Includes a koi pond, 10+ car parking space, and a chandelier-lit dining hall for 20 guests.

Located in the prestigious Victoria Park GCB enclave near Orchard Road.

Ownership & Market Context:

Owner: Tang Wee Kit, son of late retail pioneer CK Tang (founder of the iconic CK Tang department store on Orchard Road).

Current Role: Managing director of Tang Holdings, a property investment firm, and majority owner of CK Tang Limited, which operates outlets at Orchard Road and HarbourFront.

Market Challenges:

Singapore-born buyers are shunning high-value purchases due to elevated borrowing costs and additional buyer’s stamp duties (ABSD).

Luxury property sales remain sluggish despite a broader market recovery. In August, a convicted oil tycoon’s GCB sold S$4 million below its original ask.

Why the Slowdown?

Interest Rates: Persistent high rates deter financing for ultra-luxury homes.

Cooling Measures: ABSD rates of 20% for Singaporeans and 60% for foreigners on secondary properties have dampened demand.

Shifting Preferences: Buyers prioritize practicality over prestige, favoring smaller, centrally located units.

The GCB Factor:

GCBs—Singapore’s most coveted residential assets—are restricted to citizens only, with just 2,800 such properties islandwide. Transaction volumes fell sharply in 2024, with only 8 GCBs sold in H1 2024 (vs. 34 in 2023), per Urban Redevelopment Authority (URA) data. Average prices dipped 5% YoY to S$1,890 per sq ft.

Broader Implications:

The Tang family mansion’s struggle reflects a broader recalibration in Singapore’s luxury segment. Analysts note that even prime assets are not immune to macroeconomic headwinds, with sellers forced to recalibrate expectations. As the city-state’s property market navigates a “new normal” of moderated growth, high-net-worth buyers remain cautious—opting for patience over prestige in an uncertain climate.