GCB deals set new record in 2006
Property
Published February 15, 2007
GCB deals set new record in 2006
By UMA SHANKARI
THE year 2006 saw a record 125 good class bungalow (GCB) transactions worth a total of $1.3 billion, said property consultancy Jones Lang LaSalle (JLL) yesterday. The numbers are significantly higher than 2005's 89 GCB transactions worth a total of $773.2 million.
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The good performance last year means that GCBs fetched an average of $500 psf - an increase of 33 per cent over 2005.
JLL, which arrived at the figures from caveats lodged for the GCBs, also said that speculative activity in the GCB market climbed as activity picked up. 'As the GCB market saw an increase in activity in 2006, speculative transactions followed through with seven sub-sales of GCBs with an average of 4-5 months turnaround period,' said JLL.
Lui Seng Fatt, regional director and head of investments at JLL, said that the strong showing of the GCB market is expected to continue this year.
'Transactions in the GCB market are expected to continue on an upward trend,' he said. His optimism comes as JLL yesterday also announced that it has sold a GCB at Whitehouse Park for $14.4 million to a Singaporean buyer. The figure translates to about $950 psf - the highest price fetched by a GCB in the area since 1997, when a GCB there was transacted at $1,009 psf.
The figure, however, is still lower than the price of $1,148 psf achieved in Nassim Road in 2000. Said Mr Lui: 'Looking at current sentiments and the previous peak prices, the GCB market looks to set new records.'
For 2006, demand in the high-end residential sector remained generally positive - bolstered by the strong economic performance and improving sentiments, said JLL. 'Profiled as being cash-rich and undeterred by possible rising home loan rates, an increasing pool of local and foreign high net-worth individuals has driven demand for the high-end residential market,' it said.
About 69 per cent of recorded GCB buyers were Singaporeans, said JLL, but there were also substantial numbers of Indonesians (7 per cent of all buyers) and Malaysians (6 per cent).
JLL has two GCBs, both on Dalvey Road, left in the area after the sale of the GCB at Whitehouse Park. During the tender stage, JLL received more than 70 inquiries and viewings for the three GCBs, the firm said.
