A luxurious Good Class Bungalow (GCB) located in Victoria Park has recently been put on the market for $61 million. The seven-bedroom bungalow was finished only three years ago and is located at the end of a quiet cul-de-sac on Victoria Close, which has a total of 10 houses.
Similar to other areas in Singapore that have been designated as GCB areas, the number of houses in this exclusive enclave can only be increased by dividing larger plots of land that are over 30,000 sq ft, in accordance with planning guidelines. Jervis Ng, associate group district director at PropNex Realty and the agent in charge of marketing this GCB, explains that this ensures the privacy and exclusivity that GCB owners value so highly.
Ng, who is also the founder of JNA Real Estate, a property team under PropNex, adds that the return of new naturalised Singaporeans into the GCB market has been seen in recent months, which has in turn improved buying sentiment. He believes that this GCB will particularly appeal to newly naturalised Singaporeans who grew up in countries like China, India, or Indonesia and are now looking for a luxurious home in Singapore.
Victoria Park is an area that is home to many illustrious residents, such as Jack Ma, the Chinese business magnate and co-founder of Alibaba Group, and Tang Wee Kit, a member of the Tang family that is known for founding Tangs department store. Ng says that this particular GCB has been extremely well-maintained and still looks new, thanks to its contemporary interior design and high-quality materials and finishes.
The GCB sits on a large 18,988 sq ft plot and the owners worked closely with the architect to make the most of the land. The bungalow has an impressive total built-up area of 25,300 sq ft, which includes seven en suite bedrooms, three helpers’ rooms, and a basement carpark that can fit up to seven cars. The basement also houses an entertainment room that is currently set up as a home cinema but can easily be converted into a guest room if needed. There is also a private gym and a 20m lap pool.
Ng notes that the bungalow’s location on a hilltop means that most of the rooms have stunning views of the surrounding low-rise neighbourhood. According to caveats, the site of this GCB was bought for $18.2 million in September 2016, which translates to a land rate of $959 psf. The most recent transaction in the Victoria Park GCB area was for a 15,253 sq ft plot that sold for $28.33 million in May 2021, which equals a land rate of $1,857 psf. Prior to that, a 29,956 sq ft plot was sold for $40 million ($1,335 psf) in April 2017.
The last recorded GCB sale on Victoria Park Road was for a 32,077 sq ft site that was bought for $48 million ($1,496 psf) in November 2011. Ng believes that factors like expected lower interest rates, sustained demand from ultra-high-net-worth buyers, and limited GCB supply will help to keep the GCB market stable and drive transaction activity this year. He predicts that GCB transaction volume will rise by 10% to 15% compared to last year, as long as there are no major economic disruptions.
Investing in a condo has numerous advantages, including the opportunity to use the property’s value to acquire more investments. A common practice among investors is to use their condos as collateral to secure financing for new investments, which ultimately leads to the growth of their real estate portfolio. This approach can significantly increase returns, but it also involves risks that should not be overlooked. It is essential to have a well-thought-out financial plan and consider the potential effects of market changes. With the addition of New Condo Launches, investors have even more options to diversify their investments and potentially increase their profits.
In 2020, there were about 35 GCB transactions that resulted in total transaction volume of $1.32 billion, a significant increase from the previous high of $1.186 billion in 2019.