Property consultancy firm CBRE said that more than $500 million worth of Good Class Bungalows (GCBs) have been sold during the first quarter of 2010.
Based on CBRE’s analysis of URA Realis caveats, 29 deals were made in Q1 2010, amounting to $470.33 million. In addition, Mr. Douglas Wong, director for luxury homes at CBRE, confirmed that he brokered a $36.3 million transaction in March, which has yet to be included in the caveats.
According to market watchers, additional caveats for deals made last month may be captured over the next few weeks.
The 14 Bishopsgate deal brokered by Mr. Wong would be the biggest in dollar quantum during the first three months of the year. The single-storey conservation bungalow, which is being sold by members of the Wong family, who once controlled Tien Wah Press, is more than 50 years old and has a land area of 32,405 sq ft.
Market watchers say that transactions will continue to stream in this month, including a $23-million sale at Victoria Park with a land area of 21,190 sq ft and a $23.5-million sale at Ladyhill Road with a land area of slightly over 16,000 sq ft. However, with the number of deals this year expected to drop amid rising prices, they generally do not expect a repeat of last year’s $1.72-billion record of transacted GCBs.
Mr. William Wong, managing director of RealStar Premier Property, said: “Current GCB prices are about 10-20 percent higher than a year ago, depending on location of the bungalows. Those in prime areas such as Tanglin have gone up as much as 20 percent.”
Agreeing, Mr. Wong of CBRE said that properties in the Jervois/Chatsworth/ Bishopsgate areas fetched around $1,000 psf in the 2007 property boom. “Today, people are asking $1,200-1,400 psf, and even $1,500 psf.”
A spokesperson for FRN Properties said that the asking price in locations like Brizay Park and King Albert Park, ranged from $900 psf to $1,000 psf, compared with the $500 psf to $700 psf during the 2007 to 2008 period.
The sale of a property at Binjai Park was among the interesting GCB deals done in Q1. The bungalow is said to have been sold by Mr. Sudhir Gupta of Amtel Group to Sareen Gajendra Singh, another entrepreneur who owns Omni United (S) Pte Ltd.
With the stringent planning requirements of GCBs, they are the creme de la creme of the housing market, at least on mainland Singapore. Only about 2,400 such bungalows are in the 39 gazetted GCB areas.
Real estate agents cited anecdotal evidence of high net-worth mainland Chinese, Indians and others who have taken up citizenship and who are purchasing GCBs.
Local players have also been active in the GCB market, noted KH Tan, managing director of Newsman Realty. These include investors who own several GCBs and those upgrading from smaller homes.