Good class bungalows (GCBs) have a unique standing in the Singapore residential market. With only 2,400 units around the country, these detached homes are highly exclusive.
They are situated in 39 designated areas and usually sit on a plot size of at least 15,070 square feet or 1,400 square metres.
Despite the bad economic situation in 2009, the GCB market has recorded brilliant results. It far surpassed the market expectations by recording the highest total value since 1996 with 100 transactions worth $1.59 billion.
July 2009 in particular saw the highest number of 23 GCB caveats lodged in a month. This year’s GCB market outlook remains high, as economic fundamentals draw near with sentiment in the residential market.
Given a stable GCB market this year, the total deals are expected to range from 80 to 90 transactions worth $1.2 billion to $1.4 billion. This is much lower compared to 2009, as most of its buyers have already made their purchases last year.
The recent economic crisis caused many investors to identify the GCB market as a good investment that is somehow less risky than other forms of investments. With such predictions, prices of GCBs could surge further this year.
While it is impossible to pinpoint the exact price increase in the GCB market due to the rules governing its sales, an overall amount of more than $20 million per transaction has been often forecasted. In 2009, 20 GCBs were sold at a price of more than $20 million, compared to 12 GCB transactions in 2008, nine in 2007 and four in 2006.