GCB prices still rising

Prices of the most expensive homes in Singapore have continued to increase, with the value of upmarket, prime-area bungalows soaring this year and sales totalling over $1 billion in the first half of 2010.

According to a report released by Savills Singapore, a house in Nassim Road went for $43.5 million or $1,800 psf in April, compared to the record $1,899 psf achieved in 2007 for a plot located along the same road, highlighting the boom in what are called good class bungalows.

The priciest bungalow sold this year was a plot in Leedon Park, which was bought for $59.4 million, or $1,419 psf.

Arguably the most coveted landed homes in Singapore, good class bungalows usually measure 15,070 sq ft (1,400 sq m) in size and are located in 39 prime gazetted areas, including Nassim Road.

Savills said sales of good class bungalows hit approximately $1.12 billion in the first half of 2010, approximately 81 percent of the value in 2009, with 54 deals compared to 24 transactions over the same period last year.

Prices have continued to edge higher on the renewed demand from well-to-do buyers, it added.

The average price of good class bungalows increased to $1,082 psf in Q2 from $928 psf in Q1.

“This year we are seeing more demand from ultra-rich, new citizens and PRs in the market, which could possibly have resulted in the higher volume and prices,” said Mr. Steven Ming, director of prestige homes and investment, Savills.

Douglas Wong, director for luxury homes at CB Richard Ellis (CBRE), said that “good class bungalow prices have continued to rise since 2007 and through the global financial crisis. Owners’ expectations are still high due to the limited supply.”