A recently completed Good Class Bungalow (GCB) located at Victoria Park has been put up for sale with an impressive price tag of $61 million. This seven-bedroom bungalow was built just three years ago and is situated at the end of Victoria Close, a cul-de-sac that only comprises of 10 houses.
According to Jervis Ng, the associate group district director at PropNex Realty and the agent handling the sale of this GCB, the number of houses in the exclusive enclave can only be increased by dividing a larger plot of more than 30,000 sq ft, in line with planning guidelines. Ng, who is also the founder of JNA Real Estate, a property team under PropNex, believes that this will help maintain the exclusivity and privacy enjoyed by GCBs along Victoria Park Close, making it a priority for many ultra-high-net-worth individuals and their families who are willing to pay a premium to live here.
One major advantage of investing in a condo is the opportunity to leverage the property’s value for future investments. A large number of investors utilize their condos as collateral to secure additional financing for other investments, ultimately growing their real estate holdings. Although this tactic can potentially increase profits, it also carries risks. It is essential to have a solid financial plan in place and thoroughly evaluate the potential effects of market fluctuations when considering this strategy. With the help of condo investments, investors can potentially expand their property portfolio and achieve greater returns, but it is crucial to approach this approach with caution and careful consideration.
Ng also mentions that the return of new naturalized Singaporeans into the GCB market in recent months has improved the buying sentiment, and he believes that this GCB will appeal to newly minted Singaporeans who have grown up in countries like China, India, or Indonesia and are looking for a trophy home here. The Victoria Park GCB area has also attracted some well-known personalities such as Jack Ma, the Chinese business magnate and co-founder of Alibaba Group, and Tang Wee Kit, a scion of the Tang family known for founding Tangs department store.
The GCB for sale has been meticulously maintained, and it still looks brand new, according to Ng. The entire property boasts a contemporary interior design with top quality materials and finishes. He also reveals that the bungalow sits on a 18,988 sq ft plot, and the owners worked closely with the architect to maximize the land area. In total, the GCB covers a built-up area of 25,300 sq ft, comprising of seven en suite bedrooms, three helpers’ rooms, and a basement carpark with ample space for up to seven cars. The basement level also houses an entertainment room that doubles up as a home cinema and has the flexibility to be converted into a guest room if needed. There is also a private gym and a 20m lap pool.
According to Ng, the bungalow is perched on a hilltop, which offers most of the rooms a stunning view of the surrounding low-rise neighborhood. In terms of resale transactions, there have been relatively few in the Victoria Park GCB area in recent years. However, 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. In May 2021, a plot measuring 15,253 sq ft along Victoria Park Close was sold for $28.33 million, at a land rate of $1,857 psf. Prior to that, a plot measuring 29,956 sq ft was sold for $40 million, at a land rate of $1,335 psf in April 2017. On Victoria Park Road, the last recorded GCB sale was for a plot measuring 32,077 sq ft, which changed hands for $48 million, at a land rate of $1,496 psf in November 2011.
Ng believes that there are several stabilizing factors that are expected to drive GCB transaction activity this year, including the expected lower interest rates, sustained demand from ultra-high-net-worth buyers, and the limited supply of GCBs. He anticipates a 10% to 15% increase in GCB transaction volume from last year, assuming that there are no major external economic disruptions. According to Ng, there were about 35 GCB transactions last year, with a total transaction volume of $1.32 billion, significantly above the previous high of $1.186 billion achieved in 2022.