Johor crown prince's S$2b tax bill clouds sale of prime Singapore land
A land betterment charge estimated at over S$2 billion is complicating the sale of 16.6 hectares held by Johor crown prince Tunku Ismail between Holland Road and Tyersall Avenue. Some prospective buyers baulk at bearing the cost, and the uncertainty has pushed his representatives to seek buyers in t
A land betterment charge estimated at over S$2 billion is complicating the sale of a prime residential site in Singapore owned by Tunku Ismail, the crown prince and regent of Malaysia's Johor state, Bloomberg reported, citing people familiar with the matter.
The 16.6-hectare site, located between Holland Road and Tyersall Avenue, was originally part of a 21.1-hectare plot held by the Johor royal family since the 1800s. A land swap with the Singapore government last June saw the 13 hectares closest to the UNESCO-listed Singapore Botanic Gardens traded for 8.5 hectares of nearby state land, reducing Tunku Ismail's holdings to 16.6 hectares.
In March, Tunku Ismail applied to the Urban Redevelopment Authority for permission to develop low-density housing and luxury homes known as good-class bungalows (GCBs). The agency has proposed rezoning the land parcels for residential use, with part designated as a GCB Area if the plan is approved. If rezoned, the land could be worth S$3.8-4.7 billion, according to Nicholas Mak, chief research officer at local property portal Mogul.sg.
The levy, a land betterment charge imposed when planning permission increases land value, would be payable by the landowner at the time permission is granted, though the owner may nominate another party to pay. Tunku Ismail wants the buyer to bear the cost, the people said, but the additional expense and uncertainty over the exact amount have frustrated some Singaporean and Malaysian developers. Three local property analysts cited by Bloomberg estimated the charge at over S$2 billion.
The Singapore Land Authority said the amount of tax payable "will be determined following the grant of permission to develop the land" and in accordance with relevant legislation. Tunku Ismail's representatives are now approaching potential buyers in the U.S. and other markets, the people added.
Tunku Ismail is the eldest of Sultan Ibrahim's six children. The Johor royal family's wealth was estimated at US$5.7 billion in 2024, with their Singapore property holdings forming a sizable portion.
