Although buying activity in the private residential market remains weak due to stricter financing rules, demand for ultra-luxurious good class bungalows (GCBs) picked up in Q1 2014 as wealthy buyers returned to the market, a DTZ report said.
Eight GCBs found buyers for a total of $225.8 million in the first quarter, which is higher than the five GCB transactions in the second half of last year that amounted to $134.6 million.
"The overall value of the eight transactions in Q1 2014 was also higher than the $192.5 million from nine transactions in Q1 2013," the report added.
According to DTZ, GCB buyers are mostly buying for their own occupation, and as such could be less affected by the TDSR and ABSD measures. The limited supply of GCBs also enhances their appeal as a good store of value.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
High-end home prices to decline 3-4% by Q4