Bungalow market picks up speed

After several weeks of stagnation, the bungalow market is starting to move again, as the stock market becomes more solid and the Eurozone crisis has shown improvement of late.

“The market is surprisingly getting back its momentum and buyers are making offers for units which are reasonably priced,” said William Wong, Managing Director at RealStar Premier Group, which specialises in bungalows around Good Class Bungalow (GCB) areas and other locations in Singapore.

For instance, a GCB at Oei Tiong Ham Park, situated on 11,000 sq ft of land, was priced at S$20 million prior to the additional buyer’s stamp duty (ABSD). It is now going for S$19 million.

Over at Ford Avenue, the price of a GCB on a 20,000 sq ft plot was reduced from S$40 million to S$36 million.

“The quantum of price adjustment depends on the owner’s motivation, but they’re more receptive nowadays to granting viewing appointments and more prepared to listen to any offers,” noted Wong.

Although no caveats for transactions in GCB areas have been lodged this year as yet, RealStar has brokered two such deals.

The first one is situated on a 19,100 sq ft freehold plot at Lornie Road and was sold for S$16.5 million (S$863.90 psf). The two-and-a-half storey property has a built-up area of around 8,700 sq ft, seven bedrooms and three small rooms. Meanwhile, the second bungalow sits on 11,000 sq ft of land close to the Coronation area and was sold for S$13 million.

Market watchers feel the ABSD does not have a direct impact on the GCB market on mainland Singapore, as buyers are locals and permanent residents (PRs).

Source : PropertyGuru – 13 Feb 2012

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