Tan Kin Lian says he bought 3 new apartments in JB, total cost still less than 1 apartment in S'pore

Former presidential candidate Tan Kin Lian said he recently bought three apartments at R&F Princess Cove in Johor Bahru, Malaysia.

In a Mar. 6 Facebook post, Tan said the total cost of the three units was less than half the price of a single apartment in Singapore.

He appeared to be referring to a condominium unit.

Tan initially bought one apartment for about RM1 million (S$330,000), before purchasing another two later on.

The former CEO of NTUC regularly posts updates on social media about his other property in Forest City, a different residential development and private town in Johor Bahru.

R&F Princess Cove has three parts, called "phases". The first phase was completed in 2018, the second in 2024, and the third is scheduled for completion in 2029.

Bought three apartments

In his post, Tan explained the rationale behind his purchases.

He initially planned to buy only one apartment in the upcoming Phase 3, and paid the "normal" price offered by the developer.

The unit cost about RM1 million (S$330,000) and is payable through progressive payments.

Tan said he'd stayed at an Airbnb in an older part of the development before and was familiar with the project, which is connected to the JB checkpoint.

Offered discounts

Tan added that he had read news reports that China-based developer R&F was "facing a tight cash flow and had problems in repaying its borrowings".

However, this appeared to be at the corporate level, he said.

For the Princess Cove project in JB, he said he understood — though he did not verify in detail — that the development was "isolated" from the company's cash flow issues, and was likely to be completed ahead of schedule.

He also noted that because he was making progressive payments, the amount at risk was lower than the full purchase price.

Tan later said the developer, through its sales manager, offered him a dual-key apartment at a special discount of 20 per cent off the normal price, but required full payment upfront.

"While the risk of advanced payment is higher than progressive payment, I decided that I could take this risk," he said. 

He added that he believed the developer or contractor was willing to offer the discount to obtain cash to help with R&F's financial situation.

Third unit bought for rental or personal use

Tan said he was later offered a third apartment in Phase 2 of the development.

The unit had already been completed and could be handed over within a few weeks, subject to paperwork.

It had originally been reserved for bumiputera buyers but was later converted into an international unit available for sale to foreigners, he said.

Tan said he received an attractive discount for this unit and decided to purchase it as well.

He added that he could rent out the unit for a yield of more than 3 per cent, or keep it for use by family and friends.

According to Tan, the property agent also told him that there are several other bumiputera units in Phase 2 still available at attractive prices.

Says total cost still lower than Singapore property

Tan added that although buying three apartments in Johor Bahru may appear costly, it is "quite affordable in reality".

"The total cost of my three apartments is less than half the cost of an apartment in Singapore," he wrote.

Two of his new apartments will be ready by 2029, while the third is ready now and is scheduled for handover by the end of this month, he said.

He noted that many people are queuing up for the "new property launches" in Singapore, referring to condominium launches.

Top photos from Tan Kin Lian/Facebook and Google Photos