Gcb Market Rebounds End Year 132 Bil Sales Value
In the world of the ultra-rich, the market for Good Class Bungalows (GCBs) has had a significantly successful year this year, compared to 2023, according to Han Huan Mei, director of research at List Sotheby’s International Realty. As of December 20, there have been 22 GCB transactions worth $612.05 million recorded with URA Realis. On top of that, there were 13 more GCB deals completed this year without any lodged caveats, making the total number of transactions for 2024 reach 35, with an estimated value of $1.32 billion. This surpasses the previous record of $1.186 billion achieved in 2022.
In contrast, there were only 18 GCB transactions in 2023, worth $432.5 million – the lowest number of deals recorded since URA Realis began tracking data in January 1995.
“The additional deals in 2024 show that the GCB market has been more active than what official transaction data reveals,” says Han. “It also highlights the coveted status of GCBs as a highly sought-after asset by ultra-high-net-worth buyers.”
Leading the charts is the sale of a GCB at Tanglin Hill for a whopping $93.888 million. The property, which sits on a freehold land of 15,150 sq ft, has a built-up area of 29,660 sq ft. This transaction broke records with a land rate of $6,197 psf. The second-largest GCB transaction was the purchase of a property at Bin Tong Park for $84 million by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda, according to a document search. However, no caveat was lodged for the property. Based on the land area of 28,111 sq ft, the price translates to a land rate of $2,988 psf. As for the highest-priced deal based on lodged caveats, that belongs to a GCB on Cluny Hill that was sold for $52 million. The property, which sits on a freehold plot of 15,141 sq ft, is relatively new and fetched a land rate of $3,434 psf.
Another notable transaction was the sale of a 21,116 sq ft GCB at Astrid Hill for $49 million ($2,321 psf) in July. The property was reportedly bought by Glenn Kuok, nephew of Kuok Khoon Hong, chairman and CEO of Wilmar International. This price reflects a land rate of $2,321 psf.
Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), notes that at least 14 transactions this year were valued at $20 million or more. This shows the strong demand for ultra-luxury properties in Singapore.
“District 10 remains the cornerstone of the GCB market, with multiple high-value deals reaffirming its status as the most sought-after district for these prestigious properties,” says Sandrasegeran. Sixteen of the recorded GCB transactions this year took place in prime District 10, including the coveted Tanglin, Bukit Timah, and Holland Road areas.
Sandrasegeran also notes that GCB transactions were relatively evenly spread throughout the year, with buying activity picking up from July. “Overall, the fact that we saw GCB deals closing throughout the year suggests sustained buying interest for these trophy properties despite external economic factors, such as inflationary pressures and high interest rates in the first eight months of the year,” he says.
Steve Tay, co-founder and executive director of his eponymous boutique luxury agency in Singapore, says that the trajectory of interest rates signalled by the US Federal Reserve (Fed), rather than the rate cuts themselves, was the primary driver of stronger buying sentiment in the GCB market during the second half of the year.
Tay notes that most GCB buyers who had been holding back on their purchases began serious discussions from July onwards, with most deals closing in the last quarter of the year. He adds that the GCB market slowed down last year due to buyers retreating following the island-wide arrests of suspects in Singapore’s biggest money laundering case.
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“The money laundering crackdown had a dampening effect on the market, causing some genuine buyers to hold back to avoid media attention,” adds Han. “Transactions also took longer to close due to heightened scrutiny and stricter checks on buyers’ identities and sources of funds.”
In recent years, a new generation of ultra-wealthy Singaporeans has emerged in the GCB market, with many young and successful entrepreneurs who have made their fortunes in technology, finance, commodities, and F&B businesses, says Tay. He also notes that newly-naturalised Singaporeans who are ultra-wealthy also contribute to the exclusive pool of GCB buyers who prefer large plots in prime districts. “However, the number of naturalised citizens buying GCBs still remains lower compared to local wealthy individuals,” says Tay.
According to research from List Sotheby’s, the estimated cost of developing a new GCB from scratch is about $1,000 psf, which also takes several years to complete. This is why most buyers are looking for relatively new bungalows in move-in condition, to minimize renovation works, observes Han.
“The GCB market is expected to maintain its positive momentum, with demand from ultra-high-net-worth individuals driving its high-value transactions,” says Sandrasegeran from SRI. “The preference for privacy among GCB buyers and sellers may lead to continued off-market transactions, making it more complex to track market activity.”