Bungalow deals gain momentum; semi-detached price psf hits new record

The Good Class Bungalow (GCB) market has revived with recent high-profile deals. In 3Q2024 to date, the number of transactions and transaction value of the GCBs sold have already surpassed those of the last two quarters, says List Sotheby’s International Realty research director Han Huan Mei. Based on the six caveats lodged in July and August, total GCB transaction sales amount to $199.68 million, with the average price based on land area at $2,028 psf. By comparison, in 2Q2024, four GCBs changed hands for $92.98 million or $2,088 psf; and in 1Q2024, five GCBs were sold for $118.42 million or $1,844 psf (see table). The figures are based on transactions where caveats were lodged with URA Realis. They exclude several outsized deals, such as the sale of the GCB at Bin Tong Park for $84 million and the GCB at Tanglin Hill for $93.88 million. According to Han, there are at least five such deals where caveats were not lodged. Read also: Creating a niche in luxury Good Class Bungalows sold at record-breaking prices Advertisement Advertisement Julian Yip, managing director of Realstar Premier Group, says the market has been subdued since 3Q2023, partly because of the $3 billion money-laundering case that broke open in August last year. “Potential buyers wanted to stay out of the limelight during this period,” he recalls. “That’s why many buyers insist on agents signing non-disclosure agreements after this episode.”

New builds

However, there have been several notable deals this year. Besides the Tanglin Hill GCB, the other significant transaction was the sale of a GCB at Bin Tong Park for $84 million ($2,988 psf). The buyer was Xiang Yangyang, the daughter of Chinese nickel billionaire Xiang Gangda, who owns Tsingshan Holding, said to be the world’s biggest nickel and stainless steelmaker. The deal was concluded in mid-April. The property that Xiang bought sits on a 28,111 sq ft freehold site, and the GCB was redeveloped in 2021. Another relatively new GCB at Jervois Hill was sold to Fuganto Widjaja, billionaire businessman and executive chairman of coal producer Golden Energy and Resources. Widjaja is also the grandson of Ekta Tjipta Widjaja, the founder of Sinar Mas Group. According to a title deed, Widjaja paid $58 million ($3,843 psf) for the GCB in a deal completed in early May. The GCB at Jervois Hill was developed by Singaporean bungalow investor George Lim in 2017 and sold for $41.2 million ($2,730 psf) to Eileen Chong, daughter of the founder of Wah Loon Engineering, Alan Chong, in 2018. It set a record price psf based on the land area. In the recent sale, Chong made a 40.8% gain in six years. The GCB at Jervois Hill has a built-up area of 12,000 sq ft across three levels. It has a spacious living and dining area, five en suite bedrooms, an aquarium in the basement with 800 fish, a home theatre, a dedicated games room, and a carpark for up to10 cars. Read also: Freehold semi-detached house at Li Hwan View for sale at $5.59 mil Advertisement Advertisement

‘Ready to move in’

Meanwhile, a GCB at Cluny Hill changed hands in early July for $52 million ($3,432 psf). The buyer, Zhang Yan, is a naturalised Singaporean citizen. The GCB sits on a land area of 15,141 sq ft and was redeveloped in 2011. Another GCB that recently changed hands was at Astrid Hill, where Glenn Kuok — the nephew of Wilmar International chairman and CEO Kuok Khoon Hong — purchased the property jointly with his mother, Lee Yong Lah, last month for $49 million ($2,321 psf). His father, Kuok Khoon Seng, was formerly the CEO of the South China Morning Post. The GCB at Astrid Hill, which has six bedrooms, was designed by architect K2LD and developed 12 years ago. The bungalow has a built-up area of about 12,000 sq ft and sits on a freehold site of 21,116 sq ft. The property would only need minor renovations, as it has been relatively well maintained, says Bruce Lye, co-founder and managing partner of SRI, who brokered the sale. “Many of the buyers today prefer to buy something relatively new that they can move into without having to redevelop,” says Lye. “Construction cost for a quality and premium GCB is now at $1,000 psf, if not higher. And it also takes a few years to redevelop a new home.”

Recent GCB deals

According to Realstar’s Yip, GCBs form a unique segment that caters to the ultra-rich who are buying for their own use. He, therefore, believes the global market uncertainty has a “minimal impact” on demand for GCBs. A case in point is the global financial crisis, where GCB prices dropped by just 3% to 5% in 2008 before recovering, he says. More recent GCB deals include a property on Rebecca Road sold for $38 million ($1,858 psf), according to a caveat lodged in July. The bungalow is in the Bin Tong Park GCB area. The house was built in 2011 and has a land area of 20,449 sq ft, with a 999-year lease from 1875. The GCB last changed hands for $29 million in June 2021. Hence, the seller made a gain of 31% in just three years. Read also: Jervois Hill GCB plot on the market again for $46 mil, down from $53 mil Advertisement Advertisement Another GCB at Chestnut Drive in the Chestnut Avenue GCB enclave changed hands for $25 million ($1,455 psf) in early August. The property sits on a land area of 17,184 sq ft, with a 999-year lease from 1882. It last changed hands in January 2011 for $16.1 million ($937 psf).

Semi-detached sold for record $5,469 psf

Realstar’s Yip notes that the new record price achieved in the GCB market is having a ripple effect on the rest of the landed housing segment, especially on the prices of smaller detached and semi-detached houses. Semi-detached houses are also hitting new record prices. Word on the street is that a newly completed semi-detached house on Jalan Arnap in the One Tree Hill estate changed hands for close to $5,500 psf. According to a title search, the property was sold for $17.2 million in a deal completed in June. Based on the freehold site of 3,145 sq ft, the price works out to $5,469 psf. The semi-detached house is sold with furnishing. The previous owner had purchased the semi-detached house at Jalan Arnap for $7 million ($2,326 psf) in December 2019, based on a caveat lodged then. The property was then torn down and redeveloped. Across the street, another semi-detached house on a 3,378 sq ft freehold site changed hands in May for $10.2 million ($3,010 psf). However, it is an older property that is likely to be redeveloped.

Prime East Coast

In the East Coast area off Mountbatten Road, a newly built bungalow at Broadrick Road was sold for $18 million ($2,731 psf) based on a caveat lodged in July. It has set a price benchmark for detached houses in the prime District 15 neighbourhood. The 2½-storey bungalow has a built-up area of 9,387 sq ft, a lap pool, and five en suite bedrooms. It sits on a freehold site of 6,600 sq ft. The property on Broadrick Road is one of a pair of detached houses developed by The Land Managers, the real estate investment and development arm of John Lim Family Office or JLFO, founded by Andy Lim, the group CEO. On Wiltshire Road at Lucky Heights Estate in the east, a bungalow with 11 rooms, an attic, and a full basement with a 15m lap pool is on the market for sale by private treaty. The bungalow has a built-up area of 20,000 sq ft and sits on a freehold site of 6,500 sq ft. According to Realstar, which is marketing the property, the bungalow on Wiltshire Road has a view of the sea, given its orientation and hilltop perch. The asking price for the bungalow is $30 million, which translates to $4,615 psf based on land area and $1,500 psf based on the built-up area, says Yip.