Inside Scoop on Good Class Bungalows in Singapore

Unless you’re one of the wealthiest tycoons in the world, purchasing a Good Class Bungalow in Singapore might feel like a distant dream. 

What happens when you bring together a very select 2,800 total property plots in 39 exclusive gazetted areas, interior architects and designers limited only by their creativity — and owners with a seemingly bottomless wallet? You get a personalised Good Class Bungalow (GCB) with bespoke features tailored for the ultrarich.

From tens to hundreds of millions, GCBs are the private sanctuaries to some of the wealthiest in the world, including TikTok’s Chew Shou Zi and Secretlab’s Ian Ang to Google’s co-founder, Sergey Brin, Sir James Dyson, or finance billionaire legend Ray Dalio.

These remarkable estates are reserved for the elite few, leaving most to marvel, forever yearning for a mere glimpse from afar. If you want to learn more about this exclusive subset of properties for sale in Singapore, find out all you need to know about Good Class Bungalows for sale.

What Is A Good Class Bungalow?

From humble origins to the pinnacle of luxury, the story of the Good Class Bungalow (GCB) is as captivating as the properties themselves.

Nineteenth-century British officers, seeking respite from the sweltering heat, commissioned simple, single-story dwellings with sweeping verandahs. 

Fast forward to modern-day Singapore, where the bungalow has undergone a metamorphosis of truly epic proportions – the crème de la crème of Singapore’s real estate. Forget everything you thought you knew about bungalows. These aren’t just houses. They’re masterpieces of architectural ambition, sprawling estates that defy the very constraints of space on this compact island nation.

What sets a GCB apart? It’s not just the price tag (though they can be over $3,000 psf). They’re certainly not for the faint of wallet). It’s the sheer exclusivity. In a city known for its soaring skyscrapers, GCBs are a rare breed – low-rise havens of tranquillity, each occupying at least 1,400 square metres of prime land.

Owned by the upper echelons of society – tech titans, old money families and the occasional celebrity – GCBs are more than mere residences. They’re status symbols, trophies and legacy pieces all rolled into one. In a country where space is the ultimate luxury, Good Class Bungalows reign supreme. They’re not just good. They’re in a class all their own.

Good Class Bungalows for Sale

Belmont Road

$50,000,000

Bedrooms: 5

Sixth Avenue

$35,000,000

Bedrooms: 5

Chestnut Drive

$22,000,000

What Are the Planning Restrictions

They crouch low and spread wide in a city that scrapes the sky. Good Class Bungalows – Singapore’s answer to the question no one dared to ask: “What if money really could buy space?”

The minimum plot size for a Good Class Bungalow in Singapore is 1,400 square metres, along with ample surrounding greenery, to qualify under the Urban Redevelopment Authority’s (URA) strict criteria for these properties. In addition, the property must be no more than two storeys high, and the actual built-up area cannot exceed 35-40 per cent of the total plot size, offering excellent opportunities to design a nature-rich outdoor living landscape. While the built-up area is limited, homeowners have significant design flexibility and freedom within the plot.

Roughly 2,800 in total, these unicorns make up roughly a quarter of all detached houses in Singapore.

Some palatial spaces have conservation status (only about 70), preserving their historical architecture. In a world of cookie-cutter condos and copycat clusters, these GCBs stand apart — lowrise monuments to the enduring appeal of land and space. They’re statements reserved for the privileged few — legacies for the future.

Where Are Good Class Bungalows Located in Singapore

With their lavish features and grandeur, GCBs are the dream of many, but only a select few have the privilege of calling them home. Reserved for ultra-high-net-worth individuals (UHNWI), these extraordinary residences exude exclusivity and remain an aspiration for those who yearn for a private lifestyle. 

Within our urban landscape, the 39 exclusive Good Class Bungalow Areas in Singapore (GCBA) stand out as prestigious enclaves designated by the Urban Redevelopment Authority (URA). These coveted zones account for a mere 3.8 per cent of all completed landed properties, making them truly rare gems in the city’s real estate landscape.

These include prime central and residential bungalow estate areas of:

• District 10: Nassim, Ladyhill, Rochalie, Bishopsgate, Chatsworth and Cluny Road
• District 11: Caldecott Hill Estate, Camden Park and Swiss Club Road
• District 20: Windsor Park
• District 21: King Albert Park, Binjai Park, Kilburn Estate and Yarwood Avenue
• District 23: Chestnut Avenue

Here’s a full list of the designated 39 areas for Good Class Bungalows across the entire island:

Who Can Call A Good Class Bungalow Home

In Singapore, the image of ‘luxury homes’ typically evokes spacious condos with breathtaking cityscape views. However, when you encounter the palatial GCBs nestled in lush greenery, boasting extensive grounds that are a rarity in the concrete jungle of Singapore, you’ll realise that these estates are the ultimate status symbol with tennis courts, 25-foot lap pools, private wine cellars, and even bowling alleys!

In 2012, the authorities implemented stricter rules for GCB acquisitions to prevent an uncontrollable rise in residential property prices. The ‘Singaporean buyer only’ rule was established, reserving the purchase of these landed properties exclusively for Singapore citizens and permanent residents. This measure aimed to curb foreigners from amassing freehold land without seeking special approval from the Singapore Land Authority’s Land Dealings Approval Unit (LDAU), as analysts predict that housing may become more expensive for the average Singaporean by 2030.

However, specific exceptions may allow non-Singaporeans to acquire landed homes in GCB areas, particularly those who have made ‘exceptional economic contributions’ and obtained permanent residency. For instance, British billionaire James Dyson reportedly moved to Singapore in 2019 as a permanent resident and acquired a GCB at 50 Cluny Road in Bukit Timah for S$45 million.

GCB Sales Are Stable Investment in Economic Uncertain Times

In 2023, challenges like global economic issues, rising interest rates, and political tensions slowed down the sale of Good-Class Bungalows. Buyers and sellers did not agree on prices, which led to fewer deals. However, as the market improved in early 2024, some sellers adjusted their expectations, encouraging more buyers to move.

The prices of GCBs began to pick up again in 2024, with land prices increasing in both the first and second quarters. By mid-2024, the average price per square foot for GCB land reached $2,148, the highest in over a year. PropNex predicts that the demand for these exclusive homes, along with the limited number of them available for sale, will continue to push prices higher in the near future.

Source: PropNex GCB & Prestige Landed Report H1 2024

Property investment offers a compelling advantage over other assets, allowing you to leverage low-interest borrowing to finance a purchase. However, you have a substantial cash purchase outlay. In that case, the value of owning a Good Class Bungalow in Singapore as a long-term multi-generational asset might outweigh other options like new or resale private properties such as condominiums and penthouses.

Decoding GCBs, Capital Gains and Tax Policies in Singapore

In Singapore, the general rule is straightforward: the Inland Revenue Authority (IRAS) typically doesn’t impose taxes on property sales or capital gains. This policy has long been a boon for real estate investors, particularly those eyeing the lucrative Good Class Bungalow (GCB) market. 

However, such eye-watering sums have not gone unnoticed by the tax authorities. IRAS keeps a vigilant eye on GCB transactions, especially when there’s a suspicion of profit-driven flipping. A recent high-profile case serves as a stark warning to ambitious property investors. The case involved a wealthy couple who managed to amass S$16 million in profits within six years dealing in three prime GCBs.

Despite the couple’s assertions that these properties were initially purchased for family use and later found unsuitable, IRAS wasn’t convinced. The tax authority focused on two key factors: the frequency of the transactions and the short holding periods for the properties. Based on these elements, IRAS concluded that the couple’s activities constituted property trading rather than investment. Consequently, their substantial profits were classified as taxable income, not tax-free capital gains.

This case highlights an important lesson for GCB investors: IRAS scrutinises the technicalities and the intent behind transactions. You could face unforeseen tax liabilities if your buying and selling activity indicates a profit-driven motive. The message for those navigating the high-stakes world of GCBs is clear. Proceed with caution, thoroughly document your intentions and seek professional tax advice when in doubt.

In Singapore’s property market, as in many aspects of finance, it’s not just what you do. It’s how you do it that counts. The line between investment and trading can be thin, and crossing it can have significant financial consequences. For potential GCB investors, understanding these nuances is not just advisable – it’s imperative. As the market evolves and authorities refine their approach to property transactions, staying informed and cautious will be key to navigating the complex landscape of luxury real estate investment in Singapore.

Redevelopment of a Good Class Bungalow

Given the scarcity of brand-new GCBs in Singapore, buyers are prepared to pick up older properties for redevelopment, even though construction costs have increased. 

“The need for space to accommodate work-from-home and shifting trends have pushed a lot of potential owners to consider redeveloping older GCBs,” says Sunita Gill, COO and Co-Founder of Singapore Luxury Homes, in an interview with Tatler Asia.

She continues, “When purchasing a GCB, you’re not just acquiring a spacious plot of land, but the land-use policy may limit the built-up area. As a result, houses in GCB areas may appear smaller than expected, emphasising the focus on preserving greenery and maintaining the exclusive charm of these luxurious estates.”

The bungalow as a whole or the roofed area cannot occupy more than 40 per cent of the plot’s size. That may seem like a restriction for some, but that means 60 percent of the land is available as a blank canvas for building swimming pools, tennis courts, or outdoor entertainment areas. With such ample space, the possibilities are limitless. 

The URA requires each GCB to measure at least 1,400 sqm, and the property’s depth and width must also be at least 30 metres and 18.5 metres, respectively. You also won’t see GCBs that are higher than two stories, with the exclusion of an attic and a basement to ensure the exclusivity of such neighbourhoods.

Let’s Start a Conversation Today about GCBs in Singapore

In the past, Good Class Bungalow buyers were typically established professionals like doctors, lawyers, and businessmen. In recent years, the demographic of GCB buyers has evolved to include a broader range of individuals. This includes young entrepreneurs, accomplished professionals, heirs from wealthy families, newly affluent Singapore citizens, and parents who acquire GCBs under trusts for their children. The changing landscape reflects the increasing diversity and aspirations of those seeking to own prestigious GCB properties.

Uncover the true investment potential of Good Class Bungalows in Singapore as a pathway to diversify your investments and build multi-generational wealth. With Singapore Luxury Homes’ expert guidance and insights, we’ll help you navigate this journey to prosperity and make your dreams come true. Let’s pave the way to your legacy of success and personalised luxury.