Most people probably cannot afford to buy good class bungalows (GCB) in their lifetime, but that doesn’t mean you cannot be "kaypoh" about it, especially when you read tons of news on GCBs that are snapped up by some wealthy tycoon.
Here are 5 things you need to know about good class bungalows.
1. What Are Good Class Bungalows?
Good class bungalows, or commonly known as GCBs, are the most prestigious and exclusive type of landed housing in Singapore.
Whilst most know that GCBs are super large and luxe homes for the wealthy, there are actually two things that distinguish GCBs from the ‘normal’ bungalows in Singapore: size and location.
2. Where Can You Find Good Class Bungalows?
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District
| Areas good class bungalows are located in |
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10
| Belmont Park, Bin Tong Park, Brizay Park, Bukit Sedap, Chatsworth Park, Cluny Hill, Cluny Hill, Cluny Park, Cornwall Gardens, Dalvey Estate, Ewart Park, First/Third Avenue, Ford Avenue, Fourth/Sixth Avenue, Gallop Road/Woollerton Park, Garlick Avenue, Holland Park, Holland Rise, Leedon Park, Maryland Estate, Nassim Road, Oei Tiong Ham Park, Queen Astrid Park, Rebecca Park, Ridley Park, Ridout Park, Victoria Park, White House Park |
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11
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Bukit Tunggal, Caldecott Hill Estate, Camden Park, Chee Hoon Avenue, Eng Neo Avenue, Raffles Park, Swiss Club Road
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20
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Windsor Park
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21
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Binjai Park, Kilburn Estate, King Albert Park,
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23
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Chestnut Avenue
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In order to preserve their exclusivity, prestige and character, GCBs can only be built in 39 gazetted areas in Singapore (see below). These are usually located in prime and popular areas such as Chatsworth, Cluny Road near the Orchard Road shopping belt, Ridley Park off Tanglin Road, Leedon Park near Holland Road, and King Albert Park off Bukit Timah Road.
Though there isn’t an estimated number, there are about 2,700 GCBs in the 39 zoned areas. Also, unlike most neighbourhoods in Singapore, these areas are surrounded by big plots of land and greenery.
In terms of their size, the Urban Redevelopment Authority (URA) stipulates that:
- GCBs cannot be built more than two storeys high (not inclusive of an attic and a basement)
- All GCBs must have a land area of at least 1,400 sq m (approx. 15,069 sq ft)
- Up to 40% of the land is allowed for the home, while the remaining 60% is dedicated to greenery and landscaping (pools, gardens, basketball courts, etc)
3. Who Can Buy Good Class Bungalows in Singapore?
So you may have heard that foreigners and Singapore Permanent Residents (PRs) are restricted from buying landed homes in Singapore (not including Sentosa Cove properties), but this is not entirely true.
But first, who is considered a foreigner?
According to the Singapore Land Authority (SLA), which regulates land use and property ownership, someone is considered a foreigner if he/she/it is not:
- Singapore citizen;
- Singapore company;
- Singapore limited liability partnership; or
- Singapore society
As such, PRs are also considered foreigners in Singapore.
Now, let’s take a look at the rules stated by SLA. Based on the rules, foreigners must seek approval from SLA if they want to buy the following types of properties:
- Vacant residential land;
- Terrace house;
- Semi-detached house;
- Bungalow/detached house;
- Strata landed house which is not within an approved condominium development under the Planning Act (eg. townhouse or cluster house);
- Shophouse (for non-commercial use);
- Association premises;
- Place of worship; and
- Worker’s dormitory/serviced apartments/boarding house (not registered under the provisions of the Hotels Act)
As you can see, landed homes are not entirely off-limits for foreigners. Special approval can be provided by the SLA and the success rate is largely determined by these two factors:
- The foreigner must be a Singapore PR for at least five years; and
- Has made an exceptional economic contribution to Singapore. This is assessed taking into consideration factors such as employment income assessable for tax in Singapore
Long story short, foreigners can buy a GCB home but it comes with the conditions mentioned above.
4. How Much Do Good Class Bungalows Cost?
Due to their scarcity and strong status symbol, good class bungalows cost much more than the average bungalow in Singapore. It’s common to find GCBs transacting for at least $8 million.
In 2019, there were 34 GCB deals totalling $645.7 million. Among these was an 84,453 sq ft GCB at 33 Nassim Road, which was sold for a whopping $231 million.
Most good class bungalows have psf prices which are comparable to the more affordable bungalows in Sentosa Cove’s Paradise Island. According to Stuart Chng, Senior Associate Executive Director of OrangeTee & Tie, the average price of a GCB in District 10 from Dec 2019 to May 2020 is $1,597 PSF.
“However, do take note that averages do not accurately paint a picture of factors such as the age of the property, land characteristics or recent renovations done. Properties that require reconstruction or are sited on less desirable land shapes or gradients may also command less than $1,000 PSF,” he says.
Stuart believes that wealthy buyers will be on the lookout for good GCB deals and will seize the opportunity to buy discounted good class bungalows.
After the Global Financial Crisis in 2008, the GCB market witnessed an uptrend in prices, and based on this, he expects the same thing to happen, which could explain the recent GCB deals of late.
“The GCB market emerged from the Global Financial Crisis with prices nary correcting and moving upward instead
“Despite COVID, the increasing influx of top-tier talents from around the world will be migrating to and making Singapore their home. As such, I see prices staying resilient and not facing any tremendous downside pressures. This category of homeowners is unlikely to face financial stress due to their wide-ranging portfolios and access to liquidity.
“In Q2 2020, I expect sales for the GCB market to improve as we witness improving global stock markets and market sentiments.”
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