From being the priciest transaction in Singapore’s property scene, the $10.5 million sale of a 315 sq m apartment unit at the Eden Residences Capitol Singapore in 2013 has turned into one of the biggest lawsuits over housing defects.
This comes as the buyer, Russian magnate Sergey Vbornov, wants a full refund of what he had paid for the unit, instead of compensation to make repairs, reported The New Paper.
The ex-chief of Russia’s second-biggest diamond producer, Vbornov sued Capitol Residential Development in the High Court for the return of monies he had paid which amounted to around $8.89 million of the sale price, $1.88 million in stamp duties and conveyancing fees of $6,857.
Vbornov received the keys to his unit on 31 October 2016. He claimed that the apartment is “unfit for habitation and does not comply with the promised luxury standard”. It also did not live up to the concept of “paradise found” as marketed.
He noted that the “unit has not been constructed to a high standard or to a reasonable standard”. In fact, attempts to rectify the defects have failed due to their inherent nature, he said. As such, he was unable to rent the apartment for up to $25,000 per month.
Capitol, on the other hand, contends that the apartment was not sold as a “luxurious apartment” and/or “paradise found”.
Capitol revealed that it carried out works to the apartment unit between March and October 2016 to address feedback on the alleged defects. It underscored, however, that such works were made out of goodwill and not as an admission of liability.
The case is set for trial next year.
This article was edited by Keshia Faculin.