Against all odds, the Good Class Bungalows (GCB) sector of the luxury property market has reached a price peak last month. Amidst the general market slowdown, luxury homes have been hit the hardest with a decline in sales volume and prices.
The average price for GCBs rose to $1,428 psf from the $1,405 psf in 2012. The rarity of these properties, plus their equally rare price tags, make them fodder for only the rich and wealthy. With their deep pockets, they may not be as affected by the recent property market slump as the everyday joe. There are only 3,900 Good Class Bungalows in Singapore, and they are located in gazetted areas. Only Singaporeans are allowed to purchases these properties.
With the lack of foreign buying of local property due to the 15 per cent Additional Buyers’ Stamp Duty (ABSD) levied in 2013, the luxury home market has been on the downward slide for sometime. In Sentosa, where anyone, local and foreigner alike are able to purchase a property, only 3 bungalows were sold last year at a 20% price drop. Even with the lower prices, average selling price was at $1, 676 psf.
Non-landed luxury apartments also did not fare well last year. The most number of units sold were at Goodwood Residences. 41 units were sold at a median of $2,461 psf at this Bukit Timah Road property. This may be due to high competition in the market with 7 luxury condominium developments completed last year, including Ardmore 3, Le Nouvel Ardmore, Sculptura Ardmore, Tomlinson Heights, Hana, Nouvel 18 and TwentyOne Anguillia Park.