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.