A magnificent Good Class Bungalow (GCB) at Victoria Park has recently been put on the market for a staggering $61 million. The luxurious seven-bedroom bungalow, which was completed just three years ago, is located at the end of Victoria Close, a cul-de-sac with only 10 exclusive houses.
As with other designated GCB areas in Singapore, the number of houses within this highly coveted enclave cannot be increased without first sub-dividing a larger plot of at least 30,000 sq ft, according to planning guidelines. Jervis Ng, associate group district director at PropNex Realty and the agent handling the sale of this GCB, explains that this rule ensures that the exclusivity and privacy of the GCBs in Victoria Park Close are maintained. This is a highly desirable feature for many ultra-high-net-worth individuals and their families, who are willing to pay a premium to enjoy it.
Ng, who is also the founder of JNA Real Estate, a property team under PropNex, has noticed an increase in interest from new naturalised Singaporeans in the GCB market in recent months, leading to a boost in buying sentiment. He believes that this particular GCB will be especially appealing to newly minted Singaporeans who grew up in countries like China, India, or Indonesia, and are now looking for a prestigious home here.
Investing in a condo has its advantages, one of which is the opportunity to leverage the property’s value for future investments. This means that the property can be used as collateral to secure additional financing for other investment opportunities, allowing investors to expand their real estate portfolio. Although this strategy has the potential to increase returns, it also comes with risks. As such, it is essential to have a well-thought-out financial plan and carefully consider the potential impact of market fluctuations when using a condo as an investment tool. With careful planning and consideration, a condo can be a valuable asset in one’s investment portfolio. Condo can offer a unique opportunity for investors to grow their investments and potentially increase their returns, making it a smart choice for those looking to diversify their investment portfolio.
The GCB area of Victoria Park is known for its illustrious residents, including Jack Ma, the Chinese business magnate and co-founder of Alibaba Group, and Tang Wee Kit, a descendant of the Tang family who are known for founding Tangs department store.
Ng notes that this particular GCB has been meticulously maintained, and still looks new. It boasts a contemporary interior design with premium quality materials and finishes, and features a bar counter with seating for entertaining guests.
He explains that the property’s layout has been carefully planned to maximise the use of its 18,988 sq ft land area, working closely with the architect to achieve this. The GCB has a total built-up area of 25,300 sq ft, which includes seven en suite bedrooms, three helpers’ rooms, and an impressive basement carpark that accommodates up to seven cars. The basement also features an entertainment room, currently set up as a home cinema, but with the flexibility to be used as a guest room if needed. There’s also a private gym and a 20m lap pool to complete the luxurious amenities.
Perched on a hilltop, most of the rooms in the bungalow offer stunning views of the surrounding low-rise neighbourhood, says Ng.
According to caveats, the site of the GCB for sale was purchased for $18.2 million in September 2016, translating to a land rate of $959 psf. The latest transaction along Victoria Park Close was for a 15,253 sq ft plot that sold for $28.33 million in May 2021, at a land rate of $1,857 psf. Prior to that, a 29,956 sq ft plot was sold for $40 million ($1,335 psf) in April 2017.
On Victoria Park Road, the last recorded GCB sale was for a 32,077 sq ft site that changed hands for $48 million ($1,496 psf) in November 2011.
Looking ahead, Ng believes that factors such as anticipated lower interest rates, sustained demand from ultra-high-net-worth buyers, and the limited supply of GCBs will help to stabilise the GCB market and drive transaction activity this year. He expects the volume of GCB transactions to increase by 10% to 15% from last year, assuming there are no major external economic disruptions.
In 2020, there were around 35 GCB transactions, amounting to a total transaction volume of $1.32 billion, well above the previous high of $1.186 billion achieved in 2011.