While activity in Singapore’s good class bungalow (GCB) market is tepid – moving only 10 units in the first half of the year, down from 11 units over the same period last year – smaller bungalows in GCB areas witness brisker sales, reported The Straits Times.
CBRE’s analysis of caveats filed with the Urban Redevelopment Authority (URA) showed that 20 sales worth a total of S$432.2 million have been registered in GCB areas so far this year, up from the 14 transactions recorded over the same period in 2016.
Describing the market to be driven by “multiple small-sized deals”, Douglas Wong, head of luxury homes at CBRE Realty Associates, does not expect this year’s sales to exceed last year’s 37 transactions.
“We expect 30 to 35 GCB transactions this year as sellers are more motivated to preserve capital and wait for market sentiment to improve. Prices are likely to be flat.”
He noted that this year’s buyers include entrepreneurs in their 40s and corporates, with interest from new citizens, especially those originally coming from China.
Meanwhile, Savills senior director of research and consultancy Alan Cheong attributed the slowdown in GCB transactions to the lack of available good stocks for sale.
According to him, this year’s transactions were of a lower dollar psf basis, indicating poorer site characteristics.
“What is holding the market back is that the ‘creme de la creme’ sites are still hard to come by with owners either refusing to sell at all costs or (selling) at exorbitant prices. Therefore, what gets transacted will be for GCBs that are in the normal rather than the superior grade in terms of location and land dimensions.”
This article was edited by Denise Djong.
