A total of 26 Good Class Bungalows were sold this year, with the total sales figure coming up to a whooping $587.75 million. Though it is nothing compared to the 133 sold for $2.38 billion at the height of the industry in 2010, it is comparable to the 29 sold last year for $682 million. But the average sf prices for GCBs have risen this year to $1,454 sf as compared to last year’s $1,388 psf. The Belmont Park, Chatsworth Park, Chestnut Avenue, Dalvey Estate, Raffles Park and White House Park areas received the most attention in 2014.
There are only 2,700 GCBs over 39 designated areas in Singapore, though the number may have increased slightly in the 1980s when GCB areas were gazetted. This resulted in some sites entering the good class bungalow market even though they are smaller than the usual 1,400 sq m size.
But property experts have noticed that the drop in transactions for these high-end properties were largely due to the MAS-imposed TDSR (total debt servicing ratio) framework and ABSD (additional buyers’ stamp duty). Most buyers of these properties are likely to already have existing properties and the increased stamp duties will total up to a rather substantial sum.
They are expecting this market to fare similarly next year as the property cooling measures remain. But with buyers’ consideration possibly turning into long term value appreciation, the Good Class Bungalow sector will certainly stand its own.