Realising the costs of a good-class bungalow

Realising the costs of a good-class bungalow

Some silver-generation bungalow owners in GCB areas are lowering their expectations for prices in favour of smaller residences and more money for retirement.

July 11, 2025

CONDOsingapore.com

Kelly Chen, the wife of failed Three Arrows Capital co-founder Kyle Davies, quietly listed her 30-year-old Peirce Hill bungalow for sale at an asking price of S$45 million sometime last year.

At that time, no deal came to pass. The freehold property in the Ridout Park Good Class Bungalow Area (GCBA) sold for S$37 million in May of this year, which translates to S$2,144 per square foot (psf) on a 17,260 square foot plot of land.

In March 2024, Komoco Holdings chairman Teo Hock Seng listed a bungalow of the same age at a T-junction on Old Holland Road for sale for S$66.7 million. For a year, it could not be sold. Teo listed the property for sale with an opening bid of S$36 million in April 2025. Since the reserve price was not reached, the bungalow, which featured six en suite bedrooms, a swimming pool, and a car porch for ten cars, was withdrawn at the highest bid of S$35 million. Soon after, it was sold by private treaty.

According to market observers, the price ranges from S$35 million to S$36 million, or S$1,512 to S$1,555 per square foot, on a 23,148 square foot plot of land.

Similar instances of some owners in Singapore's GCB market becoming more pragmatic and reducing their prior price expectations have occurred repeatedly over the last eight months. Agents claim that bungalows in areas like Joan Road, Gallop Park, Leedon Park, Bin Tong Park, and Belmont Road were included in these transactions.

They blame the trend on a number of factors, such as the ageing population of the Republic (some empty nesters are looking to sell their GCB to save money for retirement), an increase in estate sales involving GCBA bungalows, rising property taxes, and even the election of US President Donald Trump.

The Old Holland Road bungalow sale was an exception, with an estimated 45% discrepancy between the asking price at the beginning of the year and the final price this year. For other transactions, the final prices were typically 5–20% less than the initial asking prices.

However, the increased willingness to lower prices exhibited by more sincere sellers is by no means universal.

Those with holding power who own brand-new bungalows in prestigious GCB areas are not giving up. According to Realstar Premier managing director Julian Yip, "record psf of land prices will continue to be set in these locations, especially for a very-good-quality new house."

What is the big deal about GCBs?

In Singapore, bungalows in the 39 GCBAs are the most prestigious type of landed housing.

They are located on sizable plots in prime districts 10 (Nassim Road, Cluny Hill, Leedon Park, and Queen Astrid Park) and 11 (Bukit Tunggal and Eng Neo Avenue), primarily in wooded areas.

Districts 20 (Windsor Park), 21 (Kilburn Estate, which includes Yarwood Avenue and King Albert Park), and 23 (Chestnut Avenue) also have a few GCBAs.

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Strict planning requirements apply to bungalows in GCBAs in order to maintain their low-rise character and exclusivity. For one, the planning norm for newly constructed bungalows in GCBAs is a minimum plot size of 1,400 square metres, or 15,070 square feet.

Some smaller existing sites were included when GCBAs were gazetted in 1980. If these were to be redeveloped, they would still be subject to the other GCBA bungalow planning regulations. Such plots, for instance, cannot be further subdivided.

There are only 2,700+ bungalows in GCBAs, according to List Sotheby's International Realty (List SIR), guaranteeing rarity value.

Generally speaking, in order to purchase a landed property in a GCBA, one must be a citizen of Singapore.

Ten GCBA transactions totalling S$320.4 million were made in the first half of this year, according to List SIR's analysis of URA Realis caveats data downloaded on July 8 (the most recent deal dated June 18). This is more than the nine deals totalling S$211.4 million in H1 2024, but less than the 14 deals totalling S$440.7 million in the second half of last year.

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A property on 39,276 square feet of land in Joan Road and another on 16,306 square feet of land in Gallop Park were the two biggest transactions in H1 2025, each costing S$58 million.

Additionally, there were transactions for which buyers failed to submit caveats. For instance, the bungalow in Bin Tong Park owned by the late pioneer architect Alfred Wong sold for S$45 million.

Many of the GCBs sold in the fourth quarter of 2024, according to Steve Tay, executive director of Steve Tay Real Estate (STRE), and this year they had been listed for at least a year. "Real sellers cutting their asking prices to draw in buyers is the common denominator in these transactions," he continues.

What causes some GCB sellers to make price concessions?

"We are seeing a bit more estate sales of bungalows in GCB Areas," says KH Tan, managing director of Newsman Realty. If family members are not residing in such properties, there is a propensity to sell them sooner. One explanation for this is the increase in residential property taxes since 2023.

Wanderlust and empty nesters

According to Tay, older GCB owners whose children have already gotten married and moved out are usually the sellers who are lowering their expectations. In certain instances, the children might have left for work or business-related reasons. "The GCB grows too large for the elderly couple alone."

According to Tay, silver-generation GCB owners are frequently looking to travel more and spend more time abroad at this point in their lives, particularly if they have children or other family members living overseas. "They have more freedom and flexibility to arrange their travels when they sell a GCB and move into a private apartment or penthouse that they can lock up and take a vacation."

Reducing the likelihood of future family disputes

Jacqueline Wong, executive director of boutique property consulting firm JQT Private, points out that the desire to prevent future family disputes and inheritance feuds is another driving force behind the trend where more owners are prepared to make price concessions.

Similarly, another seasoned real estate advisor, who wished to remain anonymous, states: "An old person who leaves a GCB to the following generation may put them in potential conflict." Not every member of the next generation's family will be in the same financial position; some might want to sell the GCB, while others might prefer to keep it for potential capital gains. Their relationship might become strained as a result.

An elderly person could sell the bungalow and, for example, set aside a portion of the proceeds to fund retirement needs and leave the remainder for distribution to the next generation, rather than securing the majority of their wealth in a single, relatively illiquid asset like a GCB. "This gives the elderly GCB owner more options and hopefully promotes family harmony as well," she continues.

Whether they are selling their GCB for personal use or as an investment property held for rental income, some seniors mention higher property taxes as a factor.

The top-tier property tax rate for owner-occupied residential properties is currently 32%, which is double the 16 percent rate in 2022.

The top-tier property tax rate for residential non-owner-occupied properties has been 36% since the beginning of 2024, up from 20% from January 1, 2015, to December 31, 2022.

According to Wong of JQT, "some owners feel that holding onto a rental GCB property is not worth the time and effort." They must pay income tax in addition to the 36% property tax. Taking care of maintenance concerns can be difficult and time-consuming for these owners.

GCB rental party busted

Since the high-profile anti-money laundering action taken by Singaporean authorities against individuals from Fujian, China, in August 2023, there has been little leasing activity for bungalows in GCBAs.

Some of the people who were arrested were renting eye-popping S$150,000 a month to live in GCBs. A leasing agreement at S$250,000 per month was also discussed in the industry; however, it is rumoured that this included the provision of artwork and the rental of luxury cars.

According to Wong, the highest monthly GCB rentals nowadays are around S$100,000. "The majority of the tenants I work with are family offices, and they come from a variety of markets, such as Taiwan, India, and South-east Asia."

The trend's beginning: Trump's election

When did sellers' expectations begin to change, then?

Yip of Realstar attributes it to Trump's victory in the November election of the previous year. He made a number of promises, such as raising import taxes into the US, which dampened sentiment worldwide and created an atmosphere of economic uncertainty.

He says that the more serious GCB sellers likely believe that sentiment won't improve and that since prices have increased so much over the years, they might as well change their price expectations and sell.

Tay of STRE points out that rather than waiting an indefinite amount of time to reach their desired price target, some sellers might find greater value in selling their bungalows at a lower price target, at the fair market price, and carrying out their next plans.

Buyer profiles and tactics

Some GCB buyers are taking a wait-and-see stance in the hopes of finding a good deal, according to George Lee, key executive officer of Myriad Realty. "Purchasers don't want to overspend in the current uncertain economic climate."

According to Newsman's Tan, "If the property suits them and the price is right, buyers are prepared to commit." In GCBAs, some people are searching for a place to live for their own family; these people may be upgrading from a smaller landed property or, in the case of a new citizen, an apartment.

"We are seeing a little more prospective customers from the IT sector lately."

"New citizens are still coming here, primarily from China. Between 15,000 and 50,000 square feet is the range of plot sizes they require, Tan continues.

GCB buyers are divided into two groups by Yip of Realstar. Some people are sensitive to price and are prepared to buy a property when the right one becomes available. "If you find something ideal, go for it if it's not too unrealistically priced," he advises them.

Because sellers of this type of bungalow in GCBAs have the holding power and will only sell if the price is right, the second group of buyers is "very location-sensitive" and is still prepared to pay more for the best plots.

Yip states: "When it comes to negotiating with such sellers, who are probably in a more favourable position, buyers who are really keen to buy a bungalow in one of the top-tier GCB locations will have to give in."

"They'll choose slightly less desirable locations, like those at the lower tiers, if the prices are truly out of line."

He gives sellers the following guidance. "If a reasonable offer is made, selling might not be a bad idea if your goal is to liquidate or rightsize. Keep in mind that the rental yield will be low and the property tax payable will be high if the GCB you own is an investment property."

Realstar brokered five GCBA transactions for which caveats were filed in the first five months of this year, compared to six deals during the same time last year.

In the first five months of 2025, Realstar brokered two transactions for which buyers did not submit caveats, compared to three during the same period the previous year.

Prospects

According to Yip, there will probably be more bungalow transactions in GCBAs this year than there were in 2024.

"The weakened economic outlook due to Trump's tariffs and the war in the Middle East has affected market confidence," says Han Huan Mei, research director at List SIR. The total number of transactions in 2025 is probably going to be comparable to the 23 deals in 2024, albeit at somewhat higher prices.

According to Realstar's Yip, higher-tier GCB locations will see price increases of five to seven percent this year. Prices in lower-tier establishments will likely rise by zero to five percent, but otherwise remain relatively stable. The distance between the two segments will grow as a result.

"Most of the premium GCBs that are introduced to the market will be purchased by new citizens in the future," he continues. Locals are unwilling to continue paying record prices. However, new citizens—particularly those from China—are different. They observe what is taking place in Hong Kong, where luxury villas are extremely costly and leasehold.

Yip points out that even prices of S$5,000 or S$6,000 per square foot on land area are not too high for this buyer profile when it comes to freehold bungalows.

Since building their own bungalow would be a hassle, these new citizens are willing to pay more for a brand-new GCB that is ready to move into. Consequently, the demand for new bungalows in prestigious GCB areas will continue to drive up prices.

A property in Tanglin Hill that was still under construction last year sold for S$6,197 per square foot, which is currently the highest price per square foot on land for a bungalow deal in a GCBA. The bungalow has a built-up area of nearly 30,000 square feet and is situated on a 15,150 square foot lot. Delivering the house finished, fully furnished, and in a move-in ready state was part of the nearly S$93.9 million deal. This GCB was developed by Meir Homes.

The group is currently working on a 15,080 square foot bungalow in Dalvey Estate. It will have over 40,000 square feet of built-up space. It is believed that Meir Homes is negotiating with possible purchasers. In the GCB market, the selling price is anticipated to set a new record psf price.

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