Sales transaction for good class bungalows in this quarter is likely to be above $250 million with 11 GCBs changed hand worth about $234 million from April of 2012 while 9 sales were recorded in the first quarter of 2012 worth $224 million. These sales figure were according to lodged caveats which means that the total sales figure could be even higher. Good class bungalows are at the highest end of the home spectrum.
After the cooling measures, there may be some impact on smaller landed properties but for ultra-high-net worth individuals, this does not seem to apply as they appear to purchase when they can find a suitable good class bungalow as there are only about 2,400 of GCBs which are located in 39 gazetted areas such as Nassim, Dalvey and Tanglin.
In this quarter, a 20,000 sq ft bungalow in Binjai Park was sold for $31 million which is about $1,550 per sq ft. While in the first quarter, a 40,679 sq ft GCB at Ridout Road was sold for $60.6 million or $1,490 psf.
The all time most expensive home was done in Dec 2010 for a house in Leedon Park on a 41,852 sq ft site for $61.4 million.
Based on sales records, the average psf price for GCBs is about $1,363 psf for the first half of 2012, compared to $1,272 psf for 2011 and $1,087 psf in 2010.
Some analysts pointed out that prices have continued to appreciate because the GCB sellers seem to have strong holding power. The euro zone crisis also doesn't seem to have much impact on this sector of residential property as the demand is still strong.
25 Jun 2012