By Chanyaporn Chanjaroen and Faris Mokhtar
(Bloomberg) — A sprawling vacant lot in the heart of Singapore that served as the backdrop for the hit movie “Crazy Rich Asians” could be transformed into a multi-billion-dollar luxury residential project, according to people familiar with the plans.
Representatives of Johor Crown Prince Tunku Ismail Sultan Ibrahim – the registered owner of the land – are currently negotiating with local authorities for permission to build a series of luxury homes in the jungle area next to the Botanical Gardens, a UNESCO World Heritage site, said the people, who asked not to be identified because the talks are confidential.
The project would be 30 times the size of the White House and would be one of the city’s most expensive private construction projects in decades. According to an estimate by Savills Plc, the cost of development could be as much as 4.5 billion Singapore dollars ($3.3 billion).
If built, the luxury properties – just a short drive from the famous Orchard Road shopping district – would likely attract interest from the region’s super-rich, who have long been buying second homes in the city – a trend that has accelerated during the pandemic. Singapore’s overheated residential property market saw home sales worth S$32.9 billion in the first half of the year, the biggest boom in more than a decade, and double the level seen in Manhattan during the same period.
The undeveloped area is currently designated as a “special green space use”, which means that development for other purposes, such as residential or commercial, is restricted.
Discussions about the potential development have been ongoing since last year, but no final decision has been made, the people said. Once both parties sign an agreement, the area would need to be re-categorized before development can begin.
A representative of Peter Lim, who is supporting the crown prince on the land issue, declined to comment. Singapore’s Urban Development Authority, which is responsible for the country’s land planning, said it “cannot discuss or disclose plans of private landowners.”
Sultan of Johor
The Sultan of Johor’s 210,875 square metre plot was once larger, but gradually shrank as the Singapore government acquired land to expand the Botanical Gardens. In 1990, the state bought part for 25 million Singapore dollars and in 2009 it got another 98,000 square metre piece for an undisclosed amount.
The land of the Johor royals is located in what was once Tyersall Park. Inside, ravaged by fire and decay, are the ruins of Istana Woodneuk, the palace their ancestors built in the late 19th century. Kevin Kwan, author of Crazy Rich Asians, the book and Hollywood blockbuster about Asia’s insanely rich people, has relocated the sprawling ancestral home of the fictional Young family to the park.
According to Alan Cheong, head of research at Savills in Singapore, based on current estimates of the site size and planning parameters, the property could be worth between 2.66 billion and 4.5 billion Singapore dollars including development costs. Excluding the fees the owner pays to the government, the net value of the property would be at least 600 million Singapore dollars, Cheong said.
Good class bungalow
Land ownership is a privilege in Singapore, as the state owns about 90 percent of the land. There are only about 2,500 so-called good class bungalows – the local term for a mansion – which are usually located in the best neighbourhoods. Some of the bungalows near the Crown Prince of Johor’s estate are worth 20 to 30 million Singapore dollars.
Johor is the southernmost state in Malaysia and is connected to Singapore by a 1.6 km long causeway. It has close economic and historical ties with the island state.
Malaysia is a constitutional monarchy in which the throne rotates every five years between the rulers of nine states. Johor is ruled by the father of the 37-year-old crown prince, Sultan Ibrahim Sultan Iskandar.
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