SINGAPORE: The Good Class Bungalow (GCB) market in Singapore experienced a significant downturn in 2023, with transactions plummeting by 58.3 per cent year-on-year (YoY), totalling a mere 20 sales for the year.
Synonymous with opulence in Singapore’s property landscape, GCBs are renowned for their expansive size and premium locations in affluent neighbourhoods like Bukit Timah, Nassim, Tanglin, and Sentosa Cove. Strict government-imposed planning regulations contribute to the exclusivity of GCBs, making them a symbol of prestige.
The scarcity of these mansions is a key factor driving their astonishing price tags.
With limited GCBs available for sale at any given time, competition among wealthy buyers inflates property values. While prices may vary depending on the location, GCBs can command prices ranging from several million to tens of millions of dollars.
In addition to the high purchasing costs, rental rates for GCBs are equally staggering, reaching up to an eye-watering $100,000 per month.
But as the world faces economic uncertainty, buyers appear to be getting more prudent. Along with the sharp decline in the number of GCB transactions, the total value of transacted GCBs also fell by 47.9 per cent YoY, reaching $727.2 million.
Real estate firm Huttons reported that most GCB deals in 2023 occurred in the $20 million to $30 million range, signalling a trend of cautious buying behaviour among potential homeowners who were reluctant to pay exorbitant prices for these luxurious properties.
Despite the overall decline, one notable transaction stood out – the Nassim Road Good Class Bungalow Area (GCBA) witnessed the highest-priced deal of the year.
The Fangiono family acquired a GCB in this prestigious location, shelling out a whopping $206.7 million for the property.