PROPERTY developer Sustained Land’s boss, Douglas Ong, is buying a Good Class Bungalow (GCB) along Garlick Avenue in District 10.
The S$23.88 million price translates to S$858 per square foot (psf) based on the freehold land area of 27,829 sq ft. Market watchers consider the psf price to be on the low side, even if the transaction is seen as reflecting purely the land value.
The existing two-storey house on the site, though in liveable condition, is about 18 years old and Mr Ong will most likely redevelop the property.
one reason for the pricing is that the site cannot be subdivided, given the minimum 15,070 sq ft plot size stipulated by the authorities for any newly created bungalow within a GCB Area. This shrinks the pool of buyers as it may be beyond some budgets.
Another factor that is likely to have affected the pricing for the Garlick Avenue property is that the owners – a couple – are expected to stay on in the house for about six to nine months after the sale is completed. The sellers have also granted Mr Ong a slightly longer than normal period to exercise the option.
This effectively means the sellers will vacate the property in about a year’s time – whereas most buyers would want to take possession of the bungalow as soon as possible. The typical completion of sale time for a GCB deal is 12 to 14 weeks from the grant of option.
Mr Ong currently lives in a landed property in the Holland Grove area, which is not in a GCB Area, and looks forward to redeveloping the Garlick Avenue into his family’s new home.
Sustained Land was set up in 2006 and its joint-venture residential developments include The Poiz Residences next to Potong Pasir MRT Station, TRE Residences near Aljunied MRT station, and the Sea Horizon executive condo development.
It is a regular participant at state land tenders.
The Garlick Road bungalow, which has five bedrooms and a swimming pool, is being sold by a Tay family which is involved in a variety of businesses including transportation and warehousing. The family paid S$10.5 million for the property back in 1998.
Newsman Realty is understood to have brokered the sale.
Bungalows in GCB Areas are considered the creme de la creme of landed homes in Singapore,.
The Urban Rdevelopment Authority has stipulated stringent planning conditions to safeguard the exclusive, low-rise character of bungalows in GCB Areas. There are only about 2,500 bungalows in the 39 GCB Areas in Singapore.