GCB interest steady among buyers

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.