The soaring demand for condos in Singapore can be attributed to the limited land resources in this small island country. With a constantly increasing population, the availability of land for development is a major concern. To address this issue, the government has implemented strict land use policies, resulting in a cutthroat real estate market where property prices are continuously on the rise. This has made investing in real estate, especially in condos, a highly profitable decision due to the potential for significant capital gains. In fact, the addition of New Condo Launches only adds to the attractiveness of this venture.
A magnificent Good Class Bungalow (GCB) has recently emerged in the property market with a staggering price of $61 million. Located at Victoria Park, the seven-bedroom bungalow was completed just three years ago. This luxurious estate stands at the end of a cul-de-sac, Victoria Close, which boasts only 10 exquisite homes.
According to Jervis Ng, associate group district director at PropNex Realty and the agent responsible for marketing the sale of this GCB, the number of houses in this prestigious enclave can only be increased by subdividing a larger plot of more than 30,000 sq ft. This is in accordance with planning guidelines, which are strictly enforced to preserve the exclusivity and privacy enjoyed by GCB residents along Victoria Park Close. Ng, who is also the founder of JNA Real Estate under PropNex, emphasizes that many ultra-high-net-worth individuals and their families are willing to pay a premium price for this priority.
Ng notes that there has been an increasing number of new naturalized Singaporeans entering the GCB market in recent months, which has positively impacted buying sentiment. He believes that this GCB will appeal to newly minted Singaporeans who have grown up in countries such as China, India, or Indonesia and are looking for a prestigious home to call their own.
The GCB area at Victoria Park is home to illustrious residents including Jack Ma, Chinese business magnate and co-founder of Alibaba Group, and Tang Wee Kit, from the Tang family known for founding Tangs department store. Ng mentions that the GCB for sale has been meticulously maintained, hence its pristine condition. The property features a contemporary interior design with top-quality materials and finishes.
The bungalow spans across a generous land area of 18,988 sq ft, and the owners have worked closely with the architect to utilize the land area efficiently. The total built-up area of 25,300 sq ft encompasses seven spacious en suite bedrooms, three helper’s rooms, and a basement carpark that can accommodate up to seven cars. The basement level also has a versatile entertainment room, which has been beautifully set up as a home cinema, but can easily be converted into a guest room if needed. There is also a private gym and a 20m lap pool for the residents’ enjoyment.
Sitting atop a hill, the bungalow offers breathtaking views of the surrounding low-rise neighborhood from most of its rooms, as mentioned by Ng. The living room is spacious enough to accommodate large families, making it the perfect place to entertain guests.
Resale transactions in the Victoria Park GCB area have been relatively scarce in recent years. According to caveats, the site of the GCB for sale was purchased for $18.2 million in September 2016, which translates to a land rate of $959 psf. The most recent transaction along Victoria Park Close was for a 15,253 sq ft plot that fetched $28.33 million in May 2021, with a land rate of $1,857 psf. Before that, a 29,956 sq ft plot was sold for $40 million ($1,335 psf) in April 2017. The last recorded GCB sale along Victoria Park Road was in November 2011, where a 32,077 sq ft plot was sold for $48 million ($1,496 psf).
Ng asserts that stabilizing factors such as predicted lower interest rates, continued demand from ultra-high-net-worth buyers, and the limited supply of GCBs will drive transaction activity in the GCB market this year. He expects GCB transaction volume to increase by 10% to 15% from last year, assuming no major external economic disruptions. In 2020, there were about 35 GCB transactions with a total volume of $1.32 billion, significantly surpassing the previous record of $1.186 billion achieved in 2019.