Sentosa bungalow buys by money laundering suspects raise questions

Aug 30, 2023

THE foreign buyers of the seven Sentosa Cove bungalows linked to this month’s money laundering bust had been granted approval by the government for their landed property purchases.

Questions have emerged over whether proper checks were conducted before approval was granted. The individuals arrested who owned the Sentosa houses had held citizenships of countries considered risky for illicit fund flows.

Under the Residential Property Act, foreigners are required to apply to the Singapore Land Authority (SLA) for approval to buy any landed residential property, including those in Sentosa Cove.

The SLA website lists two key criteria for approval: “you should be a permanent resident of Singapore for at least five years”, and “you must make exceptional economic contribution to Singapore”.

In response to queries from The Business Times on why the approvals were granted, an SLA spokesperson said on Tuesday (Aug 29): “Some of the restrictions under the Residential Property Act are lifted for foreigners buying Sentosa Cove properties...

“For example, foreigners who are non-PRs (non-permanent residents) may acquire landed residential properties in Sentosa Cove, subject to approval.”

SLA added: “However, the land area of the subject property must not exceed 1,800 square metres, and the property must be for owner occupation and not for rental or any other purpose...

“This aims to attract international clientele who see value in these unique waterfront homes, and would contribute to developing Sentosa Cove into a unique world-class integrated waterfront development.”

The seven detached bungalows in Sentosa Cove were among 105 properties issued with prohibition of disposal orders, the police said on Aug 18.

In a response to BT queries on whether anti-money laundering checks and due diligence had been conducted for the sales of the Sentosa houses, the Council for Estate Agents (CEA) said it is investigating property agents who might have facilitated property transactions, including the landed homes on Sentosa, related to the ongoing money laundering case being investigated by the Singapore Police Force.

“CEA will provide an update after we have completed our investigations,” it said.

BT reported in 2021 that one Su Haijin had bought a pair of adjacent bungalows along Cove Drive with sea views.

Su, a citizen of Cyprus, paid a total of S$36.37 million or S$1,941 per square foot for the two houses. A person of the same name and nationality was among the 10 foreigners arrested on Aug 15.

As a non-Singapore citizen may own only one landed home in Singapore, Su was supposed to amalgamate the two plots along Cove Drive and redevelop the combined site of 18,740 square feet into a single residence.

Asked if SLA had approved Su’s purchase and if he had redeveloped the site as required, the agency said it was unable to comment as the matter is under investigation.

Two other transactions of Sentosa houses have been linked to two of the suspects arrested earlier this month, BT found.

In March 2021, Cambodian citizen Su Baolin, 41, bought a 19,550 sq ft detached house on Ocean Drive for S$39.3 million.

Zhang Ruijin, 44, and Lin Baoying, 43, were arrested at their registered address at Pearl Island, a 19-unit leasehold bungalow development built by Chinese company Ximeng Land and completed in 2012.

Houses in Pearl Island transacted at between S$15 million and S$27 million from 2010 to 2022.

Sentosa Cove, pitched as a playground for Singapore’s rich, has been a popular destination for high-net-worth individuals eyeing a piece of waterfront property.

Based on transactions captured in URA’s database, sales on Sentosa Cove jumped in 2020 to total S$195.7 million, a surge from just four deals adding up to S$83.4 million in 2019.

Sales peaked in 2021 with 26 bungalows sold for S$440.44 million, the highest number of transactions since 2012, when 25 bungalows were transacted for S$513.9 million.

https://www.businesstimes.com.sg/pro...aise-questions