The year has already clocked some record-breaking transactions, but will the recent increase in the Additional Buyers’ Stamp Duty (ABSD) affect the popularity of the Good Class Bungalows in Singapore?
There are about 1.53 million residential dwellings in Singapore, including those under the Housing Development Authority. This is as per statistics released for 2022 by Hamburg-based market research company, Statista. That’s a staggering number considering the compact size and urban density of Singapore and its famous skyscraper-filled skyline.
But what is even more interesting is the visibility of the luxury mansions that make up 1 per cent of this total housing stock—the uniquely Singapore Good Class Bungalows (GCBs) are discreetly peppered yet not necessarily hidden in the island-city’s urban environment. In land-scarce Singapore, GCBs fall under the most prestigious category as recognised by the Urban Redevelopment Authority (URA) and situated in 39 gazetted GCB areas around the island. The classification has a minimum plot requirement of 1,400 sq m (approximately 15,069 sq ft) and are touted as the most news-worthy investment especially in the past couple of years.
Don’t miss: Real estate in Asia: 5 top property trends to watch in 2023
New value
Steve Tay, senior associate vice president at List Sotheby’s International Realty says that the GCB market has been in an under-valued state since the 2009 financial crisis. But the pandemic changed all that, bringing about a new appreciation of the value of larger living and outdoor spaces along with the realisation of the frailty of life and the need for family bonding.
Considering that landed properties with the exception of Sentosa are restricted to Singaporeans, the new buyers of GCBs were predominantly local ultra-high-net worth individuals (UNHWI), newly naturalised citizens from the region, or those who have obtained approval from the Land Dealings Approval Unit (LDAU)," says Nicholas Keong, head of private office at Knight Frank Singapore. “Over the last few years, we have observed younger buyers in this market,” he adds. Approvals from LDAU are provided on a case-by-case basis.
Read more: Dream Homes: The Tatler guide to buying a Good Class Bungalow in Singapore