The Good Class Bungalow (GCB) market has been buzzing this year as demand is still healthy, according to a CBRE analysis and reported in the media.
26 GCBs were sold this year with a total value of $587.75 million, while 2013 saw 29 deals worth $682 million, while 54 GCBs were sold for $1.17 billion in 2012. The record stands at 133 deals worth $2.38 billion in 2010.
Experts say transactions have dipped recently due to the Total Debt Servicing Ratio (TDSR) and Additional Buyers’ Stamp Duty (ABSD). However, prices seem to have held up this year.
Based on transactions so far this year, the average price of GCBs in 2014 is $1,454 psf; nine per cent higher than $1,388 psf in 2013, said Douglas Wong, CBRE’s head of luxury homes.
However, the average price is only a rough estimate of GCB prices as it does not fully account for varying factors such as location, size, and design, he added.
Nevertheless, GCBs have appreciated at a quicker rate than non-landed and landed properties over the past decade. The average price of GCBs rose from $395 psf in 2004 to $1,548 psf in the year to date, according to an analysis by JLL, marking a Compound Annual Growth Rate (CAGR) of about 14.6 per cent per year.
Chua Yang Liang, Head of South-east Asia research at JLL said the outlook for GCBs remains positive, and they are expected to offer strong capital preservation given their rarity. Additionally, Wong predicts about 20 to 30 GCBs will be sold for the whole of 2015.
Image: File photo
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
