In the exclusive world of the ultra-rich, the market for Good Class Bungalows (GCBs) has shown significant growth this year compared to the previous year, according to Han Huan Mei, the director of research at List Sotheby’s International Realty. As of December 20, there have been 22 GCB transactions totaling $612.05 million, and another 13 deals worth over $700 million completed without caveats lodged, as buyers sought anonymity. This brings the estimated total for 2024 to 35 GCB transactions worth around $1.32 billion, exceeding the previous high of $1.186 billion achieved in 2022. In contrast, there were only 18 GCB transactions in 2023, amounting to $432.5 million, the lowest number of deals recorded since URA Realis began tracking such data in January 1995.
“The additional deals in 2024 show that the GCB market has been more active compared to official transaction data,” says Han. “It also confirms the status of GCBs as a highly sought-after asset by ultra-high-net-worth buyers.” Among the top deals this year is a GCB at Tanglin Hill, which sold for $93.888 million, setting a new record with a land rate of $6,197 psf. The second-largest GCB transaction was at Bin Tong Park for $84 million, purchased by Xiang Yangyang, daughter of Chinese nickel billionaire Xiang Guangda. Other notable deals include a GCB on Cluny Hill that changed hands for $52 million, and a 21,116 sq ft GCB plot at Astrid Hill that sold for $49 million in July.
Overall, there were at least 14 transactions valued at $20 million or more, highlighting the strong demand for ultra-luxury properties in Singapore. “District 10 remains the cornerstone of the GCB market, with multiple high-value deals reaffirming its status as the most sought-after district for these prestigious properties,” says Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI). Sixteen of the recorded GCB transactions this year took place in prime District 10, including Tanglin, Bukit Timah, and Holland Road.
Sandrasegeran notes that the GCB market saw sustained buying activity throughout the year, with a notable increase from July onwards. “This suggests a sustained interest in these trophy properties, despite external economic factors such as inflationary pressures and high interest rates in the first eight months of the year,” he says. According to Steve Tay, co-founder and executive director of his eponymous boutique luxury agency in Singapore, the trajectory of interest rates signaled by the US Federal Reserve (Fed) was the primary driver of stronger buying sentiment in the GCB market during the second half of the year. The Fed implemented three rate cuts this year, with the most recent being a 25 basis point reduction on December 18.
According to Han, the GCB market slowed last year due to the island-wide arrests of suspects in Singapore’s biggest money laundering case. “The money laundering crackdown had a dampening effect on the market, causing some genuine buyers to pull back to avoid media attention,” she adds. “Transactions also took longer to close due to heightened scrutiny and stricter checks on buyers’ identities and sources of funds.”
Tay says a new generation of ultra-wealthy Singaporeans has emerged in the GCB market in recent years, with many young and successful entrepreneurs in technology, finance, commodities, and F&B businesses. He adds that the preference for privacy among GCB buyers and sellers could mean continued off-market transactions, adding complexity to tracking market activity. Overall, the GCB market is expected to maintain its positive momentum, with demand from ultra-high-net-worth individuals driving high-value transactions.