Good Class Bungalow market to stay muted in 2H23: experts
CBRE cited three factors affecting sales of GCBs.
Sales of Good Class Bungalows declined in 1H23, with transactions falling 30.1% YoY to $525.27m.
Comparing the 1H23 figures to the preceding half year (2H22), GCB transactions dropped 14.4%.
According to CBRE, sales activity in the market began slowing significantly in Q4 2022 and continued through H1 2023 amidst “aggressive Fed rate hikes and assuring macroeconomic backdrop.”
“This downward drift in transaction volumes mirrored the general landed and non-landed property market in Singapore,” CBRE said.
In 2H23, CBRE believes transactions in the market will likely stay muted due to the uncertain economic outlook, geopolitical tensions and elevated interest rates.
“In the longer term, Singapore’s strong positioning as a wealth hub and the continued attractiveness of GCBs as status symbols and for wealth perseveration ought to support demand and prices,” CBRE added.