While Singapore collective sale upswing rolls on, you might not aware that the property market demand in Singapore has been increased steadily over the past 8 months.
The falling prices and the limited supply of landed homes also lead to the increasing number of landed homes sold recently.
A total of 22 good class Good Class Bungalows (GCB) worth S$463.91 million transacted in the first half of 2017. This shows a phenomenon increase from 14 GCBs worth of S$298.36 million in the same period a year ago, according to a report from CBRE.
The sales of good class bungalows (GCBs) and Sentosa Cove homes escalated in the first half of 2017 from a year ago.
Based on URA caveats lodged, 20 GCBs and 7 bungalows at Sentosa Cove were sold in the first half of 2016, which shows a significant increase as compared to 14 GCBs and none at Sentosa Cove during the same period in 2015.
Looking at this trend, the GCB market in 2017 will outperform last year’s total sales volume of 37 GCBs.
Good Class Bungalow, or more commonly known as GCB, is the most prestigious type of landed housing and the highest end of the luxury segment in Singapore’s property market.
Source: Cushman & Wakefield
Good Class Bungalows are easily worth 8 figures or above. They are usually sold to those who appreciate privacy and exclusivity, including the wealthiest people in Singapore such as business tycoons and real estate developers.
If you want to hunt for a GCB, here are 10 things to know:
1. There are about 2,700 GCBs only situated within the 39 gazetted GCB areas in Singapore.
2. To be classified as a GCB, the property must have a land area of at least 15,000 sqft (approximately 1,400 sqm) and be situated in the 39 GCB zones.
3. Good Class Bungalow GCBdesignated areas are mainly located in the prime residential districts of 10 and 11 as well as the bungalow estates in districts 20, 21 & 23.
List of Good Class Bungalow Areas (GCBA)
Bin Tong Park
Caldecott Hill Estate
Chee Hoon Avenue
Eng Neo Avenue
Gallop Road/Woollerton Park
King Albert Park
Oei Tiong Ham Park
Queen Astrid Park
Swiss Club Road
White House Park
4. URA ’s guidelines restrain GCBs from being built more than two-storeys high (plus an attic and a basement). Owners also need to agree not to build a bungalow that consumes more than 35% of the plot size. This is to preserve the exclusivity and prestige of such neighborhoods.
5. About 65 GCBs Good Class Bungalowshave been gazetted for conservation. Those earmarked for conservation cannot be torn down and rebuilt. A general guide would be that if what you are interested to buy is an older bungalow with colonial architecture, chances are that it could be ear marked for conservation.
6. Depending on land size and facilities, GCBs can be priced up to $10 million and above. Bungalows with bigger plots and swimming pools can fetch higher prices.
7. Sales of GCBs are indicative of the health of the property market since investing in multi-million dollar homes means investor confidence is up.
8. Since 2012 only Singaporeans can buy in GCB areas. Foreigners were previously allowed to purchase such homes subject to permission from the Land Dealings (Approval) Unit, but only if the land area didn’t exceed 15,000 sq ft.
Still, the resale market for the high-end luxury market such as GCB remains slow but steady. A bullish turn is not expected to materialise for the good class bungalow segment.
Despite the steep price, the good class bungalows are still considered good assets to have, thanks to their exclusivity.