Good Class Bungalow market marks slowest half-year performance since 1H20

Only eight GCBs were sold from January to June.

The number of Good Class Bungalows (GCB) sold in the first half of 2023 (1H23) was less than half of the 2H22 record, data from PropNex showed.

According to PropNex, only eight GCBs with a combined value of $207.8m  were sold from January to June. In 2H22, there were 16 GCB transactions valued at $495m.

PropNex said 1H23 was also the slowest half-year performance of the market since 1H 2020.

Top deals

In 1H23, the top deal was the sale of a bungalow located in Jalan Asuhan for $42m or $2,562 psf on land area.

The property sits on 16,395 sq ft of freehold land situated within the Chee Hoon Avenue GCB area and is located just off Botanic Gardens.
Other GCBs sold in the first half include a bungalow at Jalan Harum for $32.8m, and one at Woollerton Drive for $24.4m.

Prices moving up

Despite the market weakness, as well as economic headwinds, prices of GCBs remained high and continued to move up.

The average unit price on the land area has crossed $2,400 psf as of 2Q 2023, a leap from 2Q 2022 when prices averaged $1,691 psf.

The thin transaction activity of GCBs was not the only factor which contributed to the price growth in the market over the past six months, said PropNex

“It is also reflective of current price expectations of GCB sellers. Many owners are keeping to current asking prices or even raising them – encouraged by the growing prices of landed homes,” the expert added.

Looking ahead, PropNex expects prices of GCBs to “remain firm with upside growth potential, though transaction volumes may remain muted due to limited availability and high asking prices.”