Tag Archives: GCB

GCB sales rose to $209m in Q1

The good class bungalow (GCB) market reported an improvement in sales during the first quarter, with sellers lowering their asking prices to attract buyers, reported The Business Times.

“Owners who bought GCBs several years ago have found it profitable to sell at today’s prices rather than later, in view of the uncertainties in the economic outlook,” said Douglas Wong, Head of Luxury Homes at CBRE Realty Associates.

Based on CBRE data, there were nine transactions collectively valued at $209 million in Q1 2016. In the previous quarter, the number of deals was the same, but it only reached $161 million, while there were only four sales in Q1 2015 with a combined value of $95 million.

However, prices of these exclusive landed homes are estimated to have declined by nearly 15 percent from their peak in 2013, said Realstar Premier Group Managing Director William Wong, adding that prices could also see another marginal drop of two to five percent as a few GCBs were recently sold at below market valuations.

CBRE’s Wong also expects prices to fall slightly for the rest of 2016, given a build-up in pent-up demand and the strong holding power of most owners.

“When owners lower their price expectations, buyers who have identified a property they fancy will start biting, in the fear that someone else may beat them to it and they’ll miss the (chance) to buy their dream home. When buyers jump into the market in this fashion, owners will start to hold prices,” he explained.

Looking ahead, CBRE expects a total of 30 to 35 GCB transactions for the whole of 2016 versus last year’s 33 deals, with an overall value of $715 million.

On the other hand, Realstar predicts a 20 to 30 percent growth in volume, while total sales value may rise by just 20 percent due to the lower prices of some GCBs sold earlier this year.

Newsman Realty Managing Director KH Tan, who has noticed an increase in GCB viewings recently, forecasts that prices could increase by five percent for the entire year.

“We’re receiving more serious offers, unlike in Q4 last year, when many potential buyers were still throwing low-ball numbers at owners.”

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Bungalow off Holland Road for sale

A good class bungalow (GCB) along East Sussex Lane off Holland Road has been put up for sale through expression of interest (EOI), revealed marketing agent Knight Frank Singapore.

Currently, a two-storey detached house (pictured) sits on the 27,181 sq ft site. Built in the 1950s, the property could be redeveloped into a luxurious bungalow.

It is located within proximity to the Holland Village and Buona Vista MRT stations, Orchard Road shopping belt and established schools.

“The guide price for the GCB is approximately $1,200 psf. This is an estate sale and the vendors are open to considering all price offers put forth by prospective purchasers during the Expression of Interest exercise,” said Mary Sai, Executive Director, Investment & Capital Markets.

Last month, a GCB at Belmont Road was moved for $44.18 million or $1,420 psf, while another bungalow at Bing Tong Park changed hands at $30 million or $1,400 psf.

According to Knight Frank, the demand for GCBs has held steady despite the slew of cooling measures imposed on the residential market.

“In May this year, a GCB at Bishopsgate was sold at a record price of $2,190 psf, surpassing the previous GCB record price of $2,110 psf set in October 2012.

“Another GCB at Ridout Road was transacted at about $91.68 million in May this year, achieving the highest transacted price for a GCB on an absolute quantum price basis. The outlook for GCBs remains positive with transactions of such properties still active and price growth only moderating,” added the consultancy.

The EOI exercise will close on 30 July 2015.

Image source: Knight Frank Singapore.