Tag Archives: Windsor Park

GCB prices still soaring amid fewer sales

Prices of good class bungalows (GCBs), considered the most expensive homes in Singapore, grew 6.7 percent to average $1,488 psf in H1 2014 from $1,395 psf in 2013, a CBRE report said.

The uptick was due to the sale of four smaller bungalows with land areas below 15,000 sq ft, for between $1,494 psf and $1,811 psf.

Based on caveats analysis by CBRE, 15 GCBs changed hands in the first six months of this year, compared to 29 for the whole of 2013.

Of the 15 deals, five went for above $30 million each.

The priciest bungalow sold in the first half went for $31.80 million. Located along Cable Road in the Tanglin area, that translates to $1,904 psf on the land area of 16,706 sq ft.

GCB sales activity 2014

According to the report, sales activity in the GCB market has been rather selective this year. “The mismatch in price expectations between buyers and sellers means a longer time is needed for deals to be struck.”

But CBRE believes there will still be interest in this market for the remainder of the year, attributed to limited commodity. There are only 2,800 such bungalows in Singapore.

Furthermore, as GCB owners have strong holding power, there won’t be fire sales.

“Under the current soft market conditions as well as with the property measures in place, buyers tend to be mainly end-users rather than investors. Taking into account the constraints posed by the TDSR framework, interest might shift to bungalows of lower value ($10 million to $15 million) if there are owners looking to sell,” stated the report.

These would likely be smaller bungalows, or those located outside districts 10, 11 and 21, like in the Chestnut Avenue and Windsor Park GCB areas.


Govt measures cool landed homes market

Sales of landed properties in Singapore have fallen in the last few years as a result of the government’s cooling measures, according to analysts.

Landed homes comprise approximately five percent of all residential properties in Singapore. As such, these units are highly-sought-after by buyers and investors due to their scarcity.

Despite this, the sales value and transaction volume of landed properties have been falling in recent times.

In 1H2013, the total number of transactions in this segment fell by 49 percent to 737 units compared to the same period a year ago. This also translates to a significant 67 percent decline compared to the first half of 2011, noted HSR Property Consultants.

Total sales also fell more than 70 percent in the first half to nearly S$500 million.

Moving forward, sales are expected to slow further due to the new mortgage rules introduced by the central bank. Nonetheless, Knight Frank feels that prices in this segment will stabilise, with a one to two percent year-on-year gain by end-2013.

And while most purchases of landed homes are by high-net-worth individuals, one in five own HDB flats.

“This year, we have a HDB addressee who bought a property located in Windsor Park, Upper Thomson. He spent about S$25 million and that transaction was done sometime in January this year,” said Donald Han, Special Adviser at HSR.

“One of the second highest transactions from that base was Oei Tiong Ham Park. It was bought by another HDB buyer at a price of S$20 million in April this year.”

Source – PropertyGuru – 4 Jul 2013