The number of sales of Good Class Bungalows (GCBs) remains below the level they were at before the Total Debt Servicing Ratio was imposed in mid-2013, but there remains buying interest for this rare type of property.
Developer OUE said on Thursday that it is buying two GCB plots in Nassim Road for $56.58 million. The price of about $1,652 per sq ft (psf) across both plots was deemed attractive, given the last GCB sale in Nassim Road was for about $2,000 psf in February 2012.
But prices have not fallen significantly, even though another recent sale was at less than $1,000 psf in Victoria Park Close. Based on caveats lodged and including OUE’s purchase, 19 sites in GCB areas have been sold so far this year, with a total value of $438.17 million. This is comparable with 19 sites and a total value of $470.99 million sold in the same period last year.
Thirty-three of these sites with a total value of $714.78 million were sold last year, up from 28 sites worth $626.14 million in 2014.Sellers tend to be Singaporeans looking to move on to the next property, while buyers include new citizens.
Mr Zhang Yong, founder of a popular steamboat chain, bought a Gallop Road bungalow for $27 million in March, or at $1,700 psf. Newly minted Singaporeans from Indonesia have increasingly been looking around as well.
Some of the GCBs on sale include one in Bukit Tunggal Road, with a price tag of $38 million. It has a built-up area of about 14,000 sq ft and land size of 20,355 sq ft.