GCB market lukewarm in growing optimism

The market for good class bungalows (GCBs) is lukewarm. However sales for smaller bungalows in GCB areas are on a upward trend. Good class bungalows (GCBs) are the most prestigious segment of landed property in Singapore.

On the GCB front, a caveat was lodged on June 12 for the most expensive one sold this year. The latest GCB sold was a $46 million bungalow in Queen Astrid Park on a 29,709 sq ft site, reportedly purchased by the family who controls oil trading group Hin Leong.

20 sales have taken place in GCB areas so far this year, worth a total of $432.2 million. These include properties with a plot size of less than 1,400 sq m. This is markedly more than the 14 transactions in the same period last year, which totalled $298.36 million.

Another upmarket landed segment, Sentosa Cove, has contrasting statistics. Sales at the exclusive waterfront precinct shot to seven this year from just four for the same period last year.

Overall, the number of landed homes sold has increased, driven by falling prices and limited supply of landed homes. 538 landed homes were sold in the second quarter – this is the highest quarterly volume since the fourth quarter of 2012. URA flash estimates released recently indicated that prices of landed residential properties fell further by 0.4 % for Q2, down from a 1.8 % drop in the previous quarter.

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