A CLASS OF ITS OWN
The unicorn of properties here and the most prestigious of landed housing, we get the low-down on Good Class Bungalows from one of Singapore’s leading experts, K H Tan.
Most of us live in flats or condos in buildings that appear to be getting taller by the day, as if in a race to the top. According to the Singapore Department of Statistics’ 2019 figures, just 5 per cent or 69,000 households live in landed properties. Of these, only about 2,500 are
Good Class Bungalows (GCBs) and owners include James Dyson, who shelled out $45 million – the priciest property per square foot – for his 15,100 sq ft Cluny Road GCB in July 2019 – just weeks after buying his $73.8million super penthouse at
The Wallich Residence, currently the island’s tallest building. In 2018, Singapore PR Kuok Hui Kwong, daughter of Malaysian tycoon
Robert Kuok, snapped up a $43.5 million GCB at Belmont Road.
GROWING DEMAND FOR GCBS
According to K H Tan, managing director of Newsman Realty, which specialises in GCBs, demand has been increasing over the years and prices have jumped exponentially. He is responsible for over 170 GCB transactions in the last 17 years. This excludes ”regular” bungalows, such as the trophy homes on Sentosa, which are the only landed properties non-Singaporeans can purchase. “Before 2010, many GCBs of 15,070 sq ft went for $4 million to $6 million. Now, they start at $20 million to over $30 million,” observes Tan. Considering the limited supply and hefty price tag, how difficult is it to buy or sell GCBs? He estimates that there are always 40 to 60 GCBs in the market. About 10 per cent of clients start with a realistic asking price. Or the seller may have a realistic asking price, but the land may be odd-shaped and thus harder to sell. Motivated sellers usually adjust their pricing to fair market value after three to six months in the market. He has a database of between 500 and 800 potential buyers, with whom he has spent time understanding their preferred location, budget and plans, whether to rebuild, to move into a ready home or to purchase a new one. Land size and shape are also factors. Some don’t mind a long driveway; others don’t like triangular-shaped land. Some want elevated land and a few prefer flat while others don’t mind land below road level, which is cheaper. Tan usually conducts an average of seven viewings for each of his listings. Up to 30 per cent of buyers don’t even need to assess the property. “They already like the location and the land and just need to view the floor plan. Some are buying to rebuild so they are not interested in the house itself.”
WHO’S BUYING?
The first group are your born and bred Singaporeans. Many of his early clients were doctors and lawyers. More recently, Tan has been seeing more bankers, fund managers and construction company bossesturned-property developers. Some own public-listed companies or have just sold them. Others like Far East Organisation CEO Philip Ng buy multiple GCBs for their children. He snapped up two bungalows adjacent to each other at Cluny Road for his family at over $65 million. According to Mr Tan, 90 per cent of GCBs are bought as family homes or as part of a plan for the future. For example, a wealthy owner may purchase multiple
GCBs while his children continue to live with him before marriage. Until they marry, the spare home is leased out for the time being.”
The second group that make up 40 per cent of his clientele are foreigners, mainly from China and Indonesia, with bulging budgets. They may be newly minted Singaporeans or are still PRs but with children who are citizens.