Where Should Savvy Investors Put Their Money: PSF Price Comparison of GCBs vs. Condos
The exclusivity and legacy of a GCB make them an attractive choice for preserving wealth for generations to come. But the question remains, how much does a Good Class Bungalow in Singapore cost? Let’s get technical with the per square foot cost of land area for GCBs for sale in the first half of 2023.
In 1H 2023, 8 bungalow deals within GCBA garnered significant attention with a combined transaction value of S$207.8 million, as reported by the PropNex GCB & Prestige Landed report. The average per square foot (psf) price stood at $1,836, showcasing the allure of these exclusive properties in Singapore’s real estate landscape.
| Address | Transacted Price | Land Area (sqft) | Unit Price (psf) | Tenure |
| Chestnut Close | $7,268,000 | 5,999 | $1,212 | Freehold |
| Eng Neo Avenue | $26,500,000 | 29,202 | $907 | 99-year Leasehold |
| Jalan Kampong Chantek | $20,500,000 | 10,459 | $1,960 | Freehold |
| Binjai Park | $28,300,000 | 15,515 | $1,824 | Freehold |
| Sixth Avenue | $26,000,000 | 12,750 | $2,039 | Freehold |
| Woollerton Drive | $24,400,000 | 8,646 | $2,822 | Freehold |
| Jalan Harum | $32,800,000 | 14,211 | $2,308 | Freehold |
| Jalan Asuhan | $42,000,000 | 16,396 | $2,562 | Freehold |
This was on-par with the average in 2022. With a total transaction value of S$1.186 billion across 44 bungalow deals in GCBA from figures from the URA caveat database, the average psf works out to S$1,870. Let’s compare that against the top 10 Good Class Bungalow transactions in 2022.
In 2022, the average per square foot (psf) price for a GCB remained consistent with the previous year. The total transaction value reached an impressive S$1.186 billion across 44 sales transactions with an average psf price of S$1,870. Let’s delve into the top 10 GCB transactions in 2022:
| Address | Transacted Price | Land Area (sqft) | Unit Price (psf) | Sale Date |
| Chancery Lane | $66,060,000 | 34,216 | $1,931 | March 3 |
| Belmont Road | $55,500,000 | 27,000 | $2,056 | August 14 |
| Astrid Hill | $55,088,000 | 27,699 | $1,989 | November 18 |
| Olive Road | $50,236,200 | 27,909 | $1,800 | April 14 |
| Cornwall Gardens | $47,000,000 | 21,740 | $2,162 | September 29 |
| White House Park | $45,500,000 | 15,081 | $3,017 | August 4 |
| Gallop Road Park | $35,500,000 | 13,037 | $2,723 | March 1 |
| Leedon Park | $34,000,000 | 15,256 | $2,229 | September 21 |
| Andrew Road | $33,000,000 | 26,934 | $1,225 | June 10 |
Note: URA Realis caveat data as of November 18, 2022
There’s no denying that GCBs in Singapore are a substantial investment.
However, when you consider the price of $33 million at psf of S$1,225 for the top 10 most expensive properties, GCBs offer a relatively lower cost compared to non-landed new sales (e.g. condominiums) in the Core Central Region of Singapore, where median prices reach S$2,600 psf, and resale properties at S$1,782 psf.
For those in the income tier to afford GCB homes, this investment may be deemed reasonable and even affordable when you consider the prestige it brings. While the total outlay might be substantial, buyers of these properties are actually paying a reasonable amount in relation to the size of land they’ll own, making it an attractive and sound investment opportunity.
Singapore’s GCB Capital Gains and Tax Policies
Amid concerns over rising debt costs, escalating inflation, and potential economic downturn, some investors are exercising caution, delaying property acquisitions until the impact of global rate hikes becomes clearer. Consequently, Good Class Bungalows (GCBs) sales volume in Singapore is expected to moderate in 2023. While transaction volumes may not match the fever pitch in 2021, the pace is anticipated to slow even further compared to 2022.
In Singapore, where real estate investment is viewed as a reliable method for wealth preservation, securing a legacy through property ownership remains an attractive option for those with substantial capital. GCBs are regarded as assets offering wealth preservation benefits, characterised by long-term capital appreciation and a hedge against inflation. These qualities make GCBs particularly appealing to affluent buyers.
While Singapore does not have a capital gains tax and lacks explicit guidelines on categorizing business activities as taxable income, the government still assesses whether assets like shares or properties are being traded primarily for profit.
It’s important to note that while most asset sales are not subject to income tax, these gains could become taxable if your primary purpose for buying and selling is profit-making. It’s advisable to consult with tax professionals to ensure compliance with tax regulations and to maximise the benefits of Singapore’s tax-friendly policies.
Good Class Bungalows for Sale
Are You Ready to Invest in a GCB in Singapore?
The profile of Good Class Bungalow buyers has evolved significantly in recent years. While traditionally dominated by established professionals such as doctors, lawyers, and businessmen, the market now attracts a more diverse group. This includes young tech entrepreneurs, accomplished executives, heirs of wealthy families, newly affluent Singapore citizens, and parents acquiring GCBs under trusts for their children. This shift reflects the changing dynamics of wealth creation and the enduring allure of these prestigious properties.
Good Class Bungalows represent more than luxurious residences; they’re a pathway to diversifying investments and building multi-generational wealth. At Singapore Luxury Homes, we specialise in unlocking the true investment potential of these exclusive properties. Our expert guidance and deep market insights empower you to navigate this unique real estate landscape confidently.
Whether you’re looking to establish a family legacy, seek a prestigious address, or diversify your investment portfolio, we’re here to turn your aspirations into reality. Let us help you craft a personalised strategy that aligns with your goals, paving the way for long-term prosperity and unparalleled luxury living. Your journey to owning Singapore’s most coveted real estate starts here.
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