The market for high-end landed properties in Singapore, particularly Good Class Bungalows (GCBs) and semi-detached houses, has seen a notable resurgence in recent months. This upward trend is marked by a series of high-profile transactions that have set new benchmarks in terms of price per square foot (psf), indicating a robust demand for luxury homes among affluent buyers.
Revival of the GCB Market
The GCB market, which had been relatively subdued, has picked up momentum significantly in the third quarter of 2024. According to data from List Sotheby’s International Realty, the number of GCB transactions in July and August alone exceeded those of the previous two quarters combined. Six GCBs were sold during this period, amounting to a total transaction value of approximately $199.68 million. The average price based on land area reached $2,028 psf, showing a steady interest in this exclusive segment.
This revival comes after a slow 2023, where the market was affected by various factors, including a high-profile money-laundering case that cast a shadow over the luxury property sector. However, the GCB market has proven resilient, with several substantial deals being closed quietly, often with buyers insisting on non-disclosure agreements to maintain privacy.
Significant GCB Transactions
Among the notable transactions is the sale of a GCB at Bin Tong Park for $84 million, equating to a land rate of $2,988 psf. The buyer, Xiang Yangyang, is the daughter of Chinese nickel billionaire Xiang Gangda, highlighting the international interest in Singapore’s luxury real estate. This property, located on a 28,111 sq ft freehold site, was redeveloped in 2021, offering a modern, move-in-ready home.
Another high-profile sale involved a GCB at Jervois Hill, which was sold to billionaire businessman Fuganto Widjaja for $58 million, or $3,843 psf. The property, originally developed by a local investor in 2017 and previously sold for $41.2 million, achieved a 40.8% price increase in just six years. This GCB, with its luxurious amenities, including an aquarium in the basement, a home theatre, and a carpark for ten cars, exemplifies the kind of premium features that attract ultra-high-net-worth individuals.
The Appeal of Move-in-Ready Homes
A key trend in the GCB market is the preference for newer, well-maintained properties that require minimal renovation. For instance, a GCB at Cluny Hill, sold in July for $52 million, was built in 2011 and has been well-preserved, offering buyers the convenience of a ready-to-move-in home. Similarly, the GCB at Astrid Hill, sold for $49 million, was developed 12 years ago and has been kept in excellent condition, appealing to buyers who want to avoid the lengthy and costly process of redevelopment.
Ripple Effects on Semi-Detached Houses
The surge in GCB transactions has had a ripple effect on the broader landed property market, particularly semi-detached houses. A record-breaking transaction occurred on Jalan Arnap in the One Tree Hill estate, where a newly completed semi-detached house was sold for $5,469 psf, setting a new benchmark for this property type. This property, which was sold for $17.2 million, had been purchased for $7 million in 2019 and was subsequently redeveloped, showcasing the significant appreciation in value.
Another notable sale in the semi-detached segment was a property on Broadrick Road in the East Coast, which fetched $18 million, translating to $2,731 psf. This sale underscores the strong demand for landed properties in prime districts, where new developments continue to command premium prices.
The Future of the GCB and Landed Property Market
The luxury property market in Singapore, particularly the GCB sector, is expected to remain strong despite global economic uncertainties. The exclusivity and prestige associated with GCBs make them highly desirable among the ultra-wealthy, both local and international. This segment’s resilience was evident even during the global financial crisis when prices dipped only slightly before quickly rebounding.
As construction costs continue to rise, particularly for high-quality GCBs, buyers are increasingly looking for properties that require minimal additional investment. This trend is likely to sustain demand for newer GCBs and well-maintained older properties, ensuring that the market remains active.
Moreover, the record prices being achieved in the GCB market are likely to continue driving up prices in the semi-detached and smaller detached house segments, particularly in prime locations. For investors and buyers, this trend suggests that landed properties in Singapore will continue to be a sound investment, offering both prestige and potential for significant capital appreciation.
Conclusion
The recent momentum in the GCB market and the record-breaking transactions in the semi-detached segment highlight the continued appeal of Singapore’s luxury real estate market. With demand driven by both local and international buyers, the market for high-end landed properties is set to remain robust, offering significant opportunities for those looking to invest in this exclusive sector. As buyers increasingly seek out move-in-ready homes, the appeal of newer and well-maintained properties is likely to grow, further fueling the upward trend in prices across the landed property market.