List Sotheby’s International Realty’s Director of Research, Han Huan Mei, reports that the Good Class Bungalows (GCBs) market has performed significantly better in 2023 compared to the previous year. As of December 20, 22 GCB transactions were recorded on URA Realis with a total value of $612.05 million. Additionally, there were 13 GCB deals completed without caveats lodged, bringing the estimated total for 2024 to 35 transactions worth $1.32 billion. This surpasses 2022’s record high of $1.186 billion in GCB transactions.
On the other hand, 2023 only saw 18 GCB deals worth $432.5 million, the lowest recorded since URA Realis began tracking data in 1995. However, according to Han Huan Mei, the additional deals in 2024 show that the GCB market has been more active than official transaction data reveals, reinforcing its status as a highly coveted asset among ultra-high-net-worth buyers.
The highest-priced GCB transaction was recorded at Tanglin Hill for $93.888 million, setting a new record with a land rate of $6,197 psf. The second-highest deal was the $84 million purchase at Bin Tong Park by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda, although no caveat was lodged for the property. Other notable transactions include a GCB on Cluny Hill for $52 million and a 21,116 sq ft GCB plot at Astrid Hill for $49 million.
According to Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), at least 14 transactions this year were valued at $20 million or more, highlighting the strong demand for ultra-luxury properties in Singapore. Sixteen of the recorded GCB transactions this year took place in prime District 10, including Tanglin, Bukit Timah, and Holland Road.
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Sustained buying activity throughout the year, with a surge in July, indicates strong demand for GCBs despite external economic factors such as inflationary pressures and high interest rates in the first half of the year, according to Sandrasegeran.
Steve Tay, co-founder and executive director of his boutique luxury agency, attributes the stronger buying sentiment in the GCB market to the trajectory of interest rates signalled by the US Federal Reserve (Fed). Ultra-wealthy Singaporeans, newly naturalised citizens, and successful entrepreneurs in technology, finance, commodities, and F&B businesses are the main contributors to the exclusive pool of GCB buyers.
Han reports that the GCB market slowed down in 2020 due to buyers’ retreat following the island-wide arrests of suspects in Singapore’s largest money laundering case. She adds that the market is expected to continue its positive momentum, driven by demand from ultra-high-net-worth individuals. The preference for privacy among GCB buyers and sellers could also lead to off-market transactions, making it challenging to track market activity.