In the world of the ultra-rich, the market for Good Class Bungalows (GCBs) has shown a significant increase in performance this year compared to 2023, according to Han Huan Mei, director of research at List Sotheby’s International Realty.
As of December 20, there were 22 GCB transactions worth $612.05 million recorded by URA Realis. Additionally, another 13 GCB deals, worth over $700 million, were completed this year without caveats lodged, as buyers preferred to remain anonymous. List Sotheby’s estimates that there were a total of 35 GCB transactions in 2024, worth around $1.32 billion, surpassing the previous record of $1.186 billion in 2022.
In contrast, only 18 GCB transactions, valued at $432.5 million, were recorded in 2023 – the lowest number of deals since URA Realis started tracking this data in January 1995.
“This year’s additional GCB deals indicate that the market has been more active compared to official transaction data,” says Han. “It also highlights the status of GCBs as highly desirable assets that are constantly sought after by ultra-high-net-worth buyers.”
Top GCB deals
The most expensive transaction was for a GCB at Tanglin Hill, which sold for $93.888 million. The property, situated on a freehold site of 15,150 sq ft, has a built-up area of 29,660 sq ft. This sets a new record 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. 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.
Based on caveats lodged, the highest-priced deal was for 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 significant transaction was the sale of a 21,116 sq ft GCB plot 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 translates to 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, highlighting the strong demand for ultra-luxury properties in Singapore.
“Demand for ultra-luxury properties remains strong in Singapore, as evidenced by the sustained buying activity in the GCB market this year,” says Sandrasegeran. “District 10 remains the most sought-after district for these prestigious properties, with 16 out of the 35 GCB transactions taking place in prime District 10, including Tanglin, Bukit Timah, and Holland Road.”
Consistent buying activity
According to Sandrasegeran, GCB transactions were evenly spread throughout the year, with a surge in buying activity in July. “Overall, the fact that GCB deals were closed throughout the year indicates that there is sustained interest in these trophy properties, despite external economic factors such as inflation and high interest rates,” he says.
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Steve Tay, co-founder and executive director of his luxury boutique agency in Singapore, says that the trajectory of interest rates signaled by the US Federal Reserve (Fed), rather than the rate cuts themselves, was the primary driver of stronger buying sentiment in the GCB market in the second half of the year.
The Fed has implemented three rate cuts this year, including a 25 basis point reduction on December 18, following earlier cuts of 50 basis points in September and 25 basis points in November.
Tay notes that many GCB buyers who were holding back on their purchases started to have more serious discussions from July onwards, with most deals closing in the last quarter of the year.
The GCB market slowed last year as buyers were hesitant following the island-wide arrests of suspects in Singapore’s biggest money laundering case, says Han of List Sotheby’s.
“The money laundering crackdown had a dampening effect on the market, causing some genuine buyers to pull back to avoid media attention,” she adds. “Transactions also took longer to close due to heightened scrutiny and stricter checks on buyers’ identities and sources of funds.”
New generation of ultra-wealthy buyers
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 adds that newly naturalized Singaporeans also contribute to the exclusive pool of GCB buyers who prefer large plots in prime districts. However, the number of naturalized citizens buying GCBs remains low compared to wealthy local individuals, according to Tay.
According to research from List Sotheby’s, the cost of developing a new GCB from the ground up is estimated at around $1,000 psf, and the construction process can take several years to complete. As a result, most buyers are looking for relatively new bungalows in move-in condition to minimize renovations, notes Han.
“The GCB market is likely to maintain its positive momentum, driven by demand from ultra-high-net-worth individuals,” says Sandrasegeran of SRI. “The preference for privacy among GCB buyers and sellers could lead to continued off-market transactions, making it more complex to track market activity.”