Singapore Property | GCBs (good class bungalows are on the rise with the latest unit sold at $46 million. This GCB consisting of 29,709 sqft is located in Queen Astrid Parkon and is now the property of the group behind oil trading firm, Hin Leong.
Meanwhile, premium waterfront areas at Sentosa Cove are selling quickly. Sales have increased by 7% this year versus 4% for the same period last year.
To be considered a GCB, the property must at least be 1,400 sqm. 10 of this kind were traded early this year, compared to below 11 sold last year as per caveats filed.
The URA or The Urban Development Authority authorizes at least 35 extents as GCB areas. This is in conjunction with the Tanglin, Bukit Timah, Binjai Park and Bukit Panjang districts. While GCB sales are down for the moment, smaller bungalows in GCB sites show promise in the future months.
What the Caveats reveal
20 transactions have been closed totaling $432.20 million. The GCBs in this sale are all below 1,400 sqm. Last year, only 14 of this kind were sold. Put together, total sales for these two years are at $298.36 million.
Several small deals have been driving the market, says luxury homes head of CBRE Realty Associates, Douglas Wong. During the first half of 2017, prices have decreased by 5% from last year. Prices have dropped to $1,242 per square feet from a high of $1,318 per square feet.
Wong, however, does not expect higher sales this year. About 30 to 35 GCB transactions are anticipated, a lower figure compared to last year’s 37 deals. This rides on the expectation that prices will go flat.
Customer profile remains the same as the buyers are still entrepreneurs and corporate workers in their 40s. A small percentage of which are from China.
URA Approximations
Prices of landed residential properties are expected to take several steps down by 0.40% (for the second quarter), due in part to a decline of 1.80% in the previous quarter.
It should be noted that 538 homes had been sold during the 2nd quarter because of this.
Recent developments
Properties to look out for are the Belgravia Villas near Ang Mo Kio Avenue 5, the Watercove at Sembawang and the Victoria Park Villas at Coronation Road. During its weekend launch, this new development sold 20 units – a breakthrough considering that the Victoria Park Villas prices were from $4 million per semi-d.
