Record deals for Good Class Bungalow

The BT today reported that the value of Good Class Bungalow (GCB) transactions so far this year has reached nearly $1.85 billion, a new record and up 7.3% from the $1.72 billion worth of deals done for the whole of 2009. This is based on CB Richard Ellis’s analysis of URA Realis caveats information as at Dec 8.

However, based on information gathered by BT, there could be at least another $100 million of GCB deals where options have yet to be exercised and which could be finalised by year’s end.


The $1.85 billion of GCB deals YTD 2010 involved 101 transactions – slightly shy of the 109 deals in 2009 and 119 deals in 2006. The average price of GCBs sold has doubled from $501psf on land area in 2006 to $1,056psf for YTD 2010. The latest figure is also 27.1% higher than the $831psf average price for last year.

As well, the average GCB transaction size has also grown from $10.3 million in 2006 to $18.3 million so far this year. The latest figure is up 15.8% from last year.

CBRE forecasts about 100 GCB deals next year at about $2 billion with average price appreciation of about 8 – 10%.

Typically, one has to be a Singapore citizen before one can own a GCB. However, PRs who have made sufficient economic contribution are known to have been granted permission by the Land Dealings (Approval) Unit on a case-by-case basis to buy a small GCB with land area up to 15,000sqft for owner occupation.

Some foreign companies, depending on their economic footprint here, have also been given LDAU’s nod to buy a GCB.

Typically the minimum land area of a GCB is 15,069sqft. However, when GCB Areas were gazetted in 1980, there were some existing sites smaller than that in these locations. They are still considered GCBs and bound by the other planning rules.

“Good to know” information – yes. For all practical purpose – no… not to the wife and I anyway. We can never afford a GCB (even the smallest one), at least not in THIS lifetime...

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