6 Reasons to Invest in Good Class Bungalows Now Rather Than Later

In a previous article, we talked about the different types of landed properties and their various aspects. Today, we are going to focus on the most opulent of these properties: 6 Reasons to Invest in the Good Class Bungalows, and why it’s crucial that you invest in these rare commodities now rather than later.Check this

6 Reasons to Invest in Good Class Bungalows Now Rather Than Later

1. Prime Locations

There are currently 39 GCB areas designated by the Urban Redevelopment Authority of Singapore (“URA"). The URA considers a bungalow ‘good-class’ if it falls within one of these areas, which includes:

List of Good Class Bungalow Areas (GCBAs)

(Source: URA)

As you could tell from the chart, many GCBs are located in prime locations, including Cluny Park, King Albert Park and Nassim Road.

Adding on the fact that there are only 2,800 GCB plots, this shows that Good Class Bungalows are indeed an exclusive class of property worthy of immediate pursuit.

2. A Privileged Ownership for Singaporeans

To maintain balance in the GCB market and to prevent undue speculation by foreign investors, the government has decided since 2012 that only Singaporeans are allowed to buy and own GCBs. If a foreigner desires to purchase a GCB, he must become a Singaporean citizen first.

However, there were exceptions. During a period in the past, the Singapore Land Authority (SLA) determined that a handful of Singapore PRs had shown exceptional economic contributions to Singapore and were therefore worthy of buying GCBs.

Kuok Hui Kwong, the daughter of Malaysian business tycoon and investor Robert Kuok, seems to have relied on this exception. Recently, in 2018, she bought a Good Class Bungalow in Belmont Road for S$43.5 million despite being a Malaysian citizen and a Singapore Permanent Resident.

In other words, foreign investments in GCBs aren’t impossible under the right circumstances.

3. Good Surrounding Ambience

Aside from its exclusivity, GCBs also offers excellent privacy as the URA has demanded that flats, condominiums and other buildings be kept a certain distance away from GCB areas. Because of its seclusion and spacious surroundings, owners can also expect to be surrounded by greenery and enjoy scenic views.

Such emphasis on creating a garden paradise for residents is why the maximum coverage of the building could only comprise 35% of the plot ratio. It would maintain not only your privacy but also the environmental quality of your home.

4. Price Trends

While it depends on the exact plot size and the PSF pricing, the prices of GCBs in Singapore can range from over S$15 million up to S$100 million; but on average, it can fetch at least $30 million or more.

Something worthy of note is that the PSF pricing is unlikely to fluctuate much between different years and various properties. In 2016, the average price per square foot was in the ballpark figure of S$1,321.

From 2012 to 2015, the average price per square foot was quite stable at about S$1,300 to S$1,400.

5. Wide Range of Facilities

Usually, there are multiple rooms and numerous facilities in Good Class Bungalows catering to the diverse needs of the residents. It is not unusual to find GCBs equipped with swimming pools, gardens, home theatres, bowling alleys and tennis courts.

To take an example, the GCB at 98 Binjai Park with an estimated value of S$40 million as of January 2019. On top of having a luxurious dining room, living hall, seven bedrooms and study rooms, it has an entertainment room, a gym and a car garage that can comfortably accommodate 20 cars.

Another GCB at Jervois Hill even had a wall aquarium in the basement that could fit 800 fish.

6. Unlikely to Increase in Numbers

The URA has publicly stated that it doesn’t intend to release new sites as GCB-designated areas, so it is doubtful that we would be seeing a lot more new GCBs popping up in Singapore. While their number may regardless increase if owners or developers sub-divide the existing GCBs into several smaller plots, the number of remaining plots that are big enough to be sub-divided are few in number. Moreover, the sub-divided plots will remain subject to the minimum size requirements of a GCB, thus further restricting the supply and thereby increasing the exclusivity.

Conclusion

Excellent locations and well-facilitated, the GCB is becoming a rare commodity that would only decrease in numbers and increase in value over time. Having gone through the above vital facts of GCBs in Singapore, you will hopefully have a clearer picture of the great investment opportunities GCBs could offer. The wise decision is to buy sooner rather than later when GCBs truly become unattainable.

Look out for our other articles as we share other vital information about buying landed properties here in Singapore.