The stability of Singapore’s real estate market is a major factor to consider when investing in condos, and this is largely due to the government’s property cooling measures. In order to prevent speculative buying and maintain stability, the Singaporean government has implemented several measures over the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign investors and those purchasing multiple properties. Although these measures may impact the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure investment environment. Condos are affected by these measures as well, making it important for potential investors to carefully consider the market conditions and government regulations before making a decision.
A luxurious Good Class Bungalow (GCB) located in Victoria Park has just been put on the market for a whopping $61 million. The stunning seven-bedroom bungalow was completed a mere three years ago and is situated at the end of the tranquil Victoria Close, a small and exclusive cul-de-sac that is home to only 10 opulent houses.
According to Jervis Ng, associate group district director at PropNex Realty and the agent in charge of marketing the sale of the GCB, the number of houses in this prestigious area can only increase by subdividing larger plots of more than 30,000 sq ft, in accordance with planning guidelines. Ng, who is also the founder of JNA Real Estate, a property team under PropNex, adds that this means the utmost privacy and exclusivity enjoyed by the GCBs along Victoria Park Close will be maintained, which is a top priority for many ultra-high-net-worth individuals and their families. As a result, they are often willing to pay a premium for such privacy and exclusivity.
According to Ng, the return of newly naturalized Singaporeans to the GCB market in recent months has improved the buying sentiment. He believes that this particular GCB will appeal to affluent individuals who have recently become Singaporean citizens and are looking for a lavish property to call their own. These individuals often come from countries such as China, India, or Indonesia, and are searching for a trophy home in Singapore.
The Victoria Park GCB area is home to several notable residents, including Jack Ma, the Chinese business magnate and co-founder of Alibaba Group, and Tang Wee Kit, a member of the Tang family who founded Tangs department store. Ng mentions that the GCB for sale has been impeccably maintained and still looks brand new. It boasts a modern interior design with top-of-the-line materials and finishes.
The GCB sits on a spacious plot of 18,988 sq ft and the owners worked closely with the architect to make the most of the space. The total built-up area is an impressive 25,300 sq ft, which includes seven en suite bedrooms, three helpers’ rooms, and a basement carpark with room for up to seven cars. The basement also houses an entertainment room that has been converted into a home cinema but can be used as a guest room if necessary. Additionally, there is a private gym and a 20m lap pool.
The bungalow is situated on a hilltop, providing breathtaking views of the surrounding low-rise neighborhood from most of the rooms, says Ng. The living room is spacious and can comfortably accommodate large families.
Resale transactions in the Victoria Park GCB area have been relatively limited in recent years. According to property records, the site of this particular GCB was purchased in September 2016 for $18.2 million, which translates to a land rate of $959 per square foot. The most recent transaction along Victoria Park Close was for a 15,253 sq ft plot, which sold for a staggering $28.33 million in May 2021, at a land rate of $1,857 psf. In April 2017, a 29,956 sq ft plot was sold for $40 million, equivalent to $1,335 psf. Along Victoria Park Road, the last recorded GCB sale was in November 2011, when a 32,077 sq ft site was sold for $48 million, or $1,496 psf.
Ng believes that several factors, such as lower interest rates, the consistent demand from ultra-high-net-worth buyers, and the limited supply of GCBs will contribute to an increase in transaction activity in the GCB market this year. He predicts that GCB transaction volume will rise by 10% to 15% from last year, barring any major external economic disruptions. In 2020, there were a total of 35 GCB transactions that generated a transaction volume of $1.32 billion, significantly higher than the previous record of $1.186 billion set in 2019.