GCB market still kicking amid new measures

November 3rd, 2012 at 12:07 am

Despite the most recent property cooling measures in the form of new home loan regulations by the Monetary Authority of Singapore (MAS), demand for Good Class Bungalows (GCBs) still appears to be relatively strong, reported The Business Times.

Five caveats were lodged in October with a total value of S$122 million and more could be submitted in the coming weeks for deals closed last month, according to CBRE’s analysis.

The initial October tally somewhat matches figures in the previous two months; six deals with a total value of S$128 million in September and another six in August at S$119 million.

October’s caveats included a GCB site at Jervois Hill and one at Swettenham Road. Bungalow investor George Lim bought the 15,094 sq ft Jervois Hill plot for S$25.8 million (S$1,709 psf). The property at Swettenham Road, a 15,450 sq ft freehold hilltop site, was sold for S$21.98 million (S$1,423 psf).

During the same period, Lim also sold a bungalow at Leedon Park for S$33 million or S$2,110 psf based on its 15,640 sq ft land area. An 8,504 sq ft property at Kingsmead Road also changed hands for S$15.1 million (S$1,776 psf).

However, bungalow caveats in GCB Areas lodged in October may have involved transactions from September or early October before the new restrictions took effect, said William Wong, Managing Director at RealStar Premier Group.

“There was a slowdown in activity and transactions in October as anticipated due to the new measures introduced,” Wong noted.

In contrast, KH Tan, Managing Director at Newsman Realty, has not seen a slowdown in activity, saying “the past eight weeks have been my busiest this year in the GCB market – in terms of viewings, negotiations and deals”.

 

Source: Property Guru