The Good Class Bungalow (GCB) market showed improved performance in Q2 2012 following an initial slowdown in Q1 due to the introduction of the additional buyer’s stamp duty (ABSD) which was launched in December.
According to caveats analysis by CBRE, the number of transactions done in GCB Areas grew from nine in Q1 to 18 last quarter while transaction values climbed 60 percent to S$359 million from S$224 million.
Looking ahead, the trend is expected to continue in Q3.
For instance, a buyer was said to have exercised the option to buy a two-storey bungalow at Oei Tiong Ham Park off Holland Road for S$17.5 million or S$1,614 psf on a 10,844 sq ft freehold land site.
At the same time, a bungalow at Olive Road was reportedly transacted for S$30 million or S$1,185 psf recently. The two-storey bungalow sits on almost 25,320 sq ft of land in the Caldecott Hill GCB Area and features a pool and an outhouse.
Another two-storey bungalow on Peirce Hill may also be changing hands for S$25 million or S$1,650 psf on a 15,150 sq ft land area.
CBRE’s analysis also revealed that the average transaction price in GCB Areas for 1H2012 rose seven percent to S$1,370 psf.
Douglas Wong, Director for Luxury Homes at CBRE, expects around 50 to 55 deals to be completed by year-end amounting to around S$11.1 billion which is almost similar to the 57 deals or S$1.16 billion last year.
Source : PropertyGuru – 27 Jul 2012