Singapore Good Class Bungalow sales picking up

Despite a slow first quarter, sales of Good Class Bungalows (GCBs) in Singapore are on the rise again.

URA Realis and Real Star Premier Properties both had significant sale increases in April, according to the Business Times.

Caveats of URA Realis reveal two sales totalling S$65 million (US$52.6 million). Meanwhile RealStar managing director William Wong reported two freehold sales of S$99 million (US$80.2 million).

The URA Realis property transactions were an Astrid Hill property of 22,012 sq ft that sold for S$35 million (US$28.3 million), and a Belmont Road property on 32,626 sq ft of land that sold for S$30 million (US$24.3 million).

RealStar had a sale in Ewart Park for S$38.6 million (US$31.3 million), or S$1150 (US$931) per sq ft of land area.  Its other sale was in the Yarwood area and neared S$60 million (US$48.6 million), or S$860 (US$696) per sq ft.

According to a recent analysis by CB Richard Ellis of URA Realis caveats data, in the first quarter of this year, some 16 GCB properties totalling about $338 million (US$273.6 million) changed hands – down from 30 deals amounting to S$623 million (US$504 million) in Q4 last year, and 31 transactions worth S$516 million (US$418 million) in Q1 2010.

Still, the average per square foot price on land area in Q1 2011 showed no sign of weakening. It has instead crept up 3.4 per cent from S$1,218 (US$986) psf in Q4 last year to S$1,260 (US$1020) psf in Q1.

RealStar’s Mr Wong predicts price upside of about 10 per cent for the whole of this year.

In addition to the S$99 million (US$80.1 million) of GCB deals his firm brokered in April, RealStar also handled the sale of about S$110 million (US$89 million) of other landed homes (mostly bungalows in districts 10, 11 and 21, as well as the eastern districts 15 and 16), taking the total value of landed homes brokered by the firm last month past the S$200 million (US$161.9 million) mark. This is double the tally for April last year, of just above S$100 million (US$80.9 million).

Meanwhile, DTZ is launching for sale by tender 20 Victoria Park Road. The ‘target price’ for the 999-year leasehold property is S$60 million (US$48.6 million), which reflects S$1,870 (US$1,513) psf on the land area of 32,077 sq ft. On the site are two bungalows and an outhouse.

The owner, believed to be a seasoned investor in the Singapore bungalow market, is said to have bought the property in 2007 for S$29.5 million (US$23.9 million) and attempted to sell it in 2009 for about S$38.7 million (US$31.3 million), but that deal was aborted.
20 Victoria Park Road is on an elevated site above road access level and has unobstructed views of the surrounding location.

One of the two bungalows on the site is a ‘modern design’ property with two storeys and an attic, while the other is a two-storey ‘black and white styled’ bungalow which is about 30 years old, says DTZ. The property has a swimming pool. The tender for 20 Victoria Park Road closes on May 27.

Source : PropertyReport – 6 May 2011

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