These record-making transactions are proof that Good Class Bungalows have a timeless appeal, even amidst the fluctuations of the property market
There’s something to be said about a property’s exclusivity being a magnet for buyers. It outlines status and prestige, desirable locations, quality and luxury, and limited supply and high demand. In Singapore’s property landscape that is dominated by luxury high-rises, all that equivocally apply to Good Class Bungalows (GCBs).
For one, they are uniquely Singaporean—they are classified by the Urban Redevelopment Authority (URA) based on their history, heritage, area and location. The latter is characteristic to this class of properties as the 2,800-odd GCBs are located in 39 gazetted areas around the island. These Good Class Bungalow Areas (GCBAs) are in the island state’s prime residential districts of 10 and 11, and in the bungalow estates of districts 20, 21, and 23. Add to that is the stipulation that these properties should have a minimum of 15,069 sqft (approximately 1,400sqm), of which the built-up area cannot take up more than 35 per cent of the plot and the bungalow itself cannot be more than two storeys in height.
For the ultra high net-worth (UHNW) in Singapore, these stipulations translate to ramped-up privacy—and security—and open spaces that can be embellished with landscaping for the families housed within to enjoy for generations.
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It may seem that these exclusive jewels have been in the news lately due to their high-profile buyers—many of them newly minted citizens or CEOs of family offices who have sought Singapore for its safe haven status. However, Steve Tay, senior associate vice-president of Sotheby’s International Realty says that the truth is that more than 50 per cent of GCB buyers are local Singaporeans—who were born here.
“In the past 10 years, there have been more newly naturalised citizens entering the GCB market, although they are still a minority,” he says, adding that they have also been instrumental in driving up their perceived value. “These newly minted citizens are willing to pay a higher per-square-foot (psf) value for the right property as they look at their long-term holding value. Besides, the GCB prices are still relatively lower than the top-tier real estate assets in other global cities and financial hubs such as Hong Kong.”
These transactions have hitherto set a benchmark for similar assets in the same location, as can be seen in the top GCB sales made in the past 10 years, adds the luxury real estate brokerage’s research director, Han Huan Mei.
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