Singapore’s landed properties have long been considered prized treasures, offering exclusive abodes with personal land ownership. These properties are prestigious status symbols and exceptional assets for wealth preservation and growth. In land-scarce Singapore, where every square metre is highly valued, landed properties are rare and valuable commodities. The allure of these properties is further heightened by the scarcity of new landed developments from Government Land Sales (GLS), with the most recent GLS for landed properties occurring in 2017. According to recent statistics, only about 68,400 of the 1,425,100 resident households in Singapore live in landed properties, translating to just 4.8%. This highlights the exclusivity and prestige of owning a landed property in this small island nation.

Landed properties represent a unique asset class, allowing discerning investors the potential to achieve financial gains while investing in an unparalleled exclusive lifestyle. Successful real estate investment requires a deep understanding of market dynamics. The first step is to equip yourself with knowledge of overall market trends. This article explores the key trends and changes shaping Singapore’s landed property market in 2024, providing insights into demand dynamics, supply trends, and price movements.

Increasing Affluence and Scarcity of Landed Homes Drive Up Their Value in Singapore

In a macroeconomic context, real estate prices typically rise as a nation’s financial wealth increases, driven by higher demand for homes from wealthier individuals. Despite recent economic challenges like inflation, recession fears, and rising interest rates, Singapore’s household wealth continues to grow, albeit at a slower pace—8% year-on-year in the first quarter of 2024. These dynamics enhance the allure and value of landed properties in Singapore. With the economy progressing steadily and the supply of landed homes decreasing, the value and prices of these properties are expected to continue their upward trajectory.

The graph above shows that the overwhelming majority of landed home buyers are Singaporeans, with Permanent Residents and Foreign buyers making up a small fraction. Notably, this cohort of Singaporean buyers includes high-net-worth individuals who have become naturalised citizens. Despite the Additional Buyers’ Stamp Duty (ABSD) increase in April 2023, which imposes an extra 5% for Permanent Residents and a hefty 60% for Foreigners, the demand for landed properties remains strong among Singapore citizens. In 2024, out of 783 recorded sales transactions for landed properties, 99% were purchased by Singapore Citizens and only 1% by Permanent Residents, with no Foreign buyers. This data shows that the ABSD increase has not adversely affected the demand for landed properties, which continue to be a prestigious asset class for wealth preservation and growth. 

Landed Property Stock by Type & Region

Inter-Terrace homes make up the majority of the landed property supply, totaling 40,373 or 54.9% of the available inventory. Semi-Detached homes follow with 22,405 units, representing 30.5% of the inventory, while Detached homes account for 14.6% with 10,739 units. Notably, the North-East region has the highest number of Inter-Terrace homes at 13,905. For those considering an investment in landed properties, Inter-Terrace homes are an ideal starting point. They offer personal land ownership and significantly larger living spaces compared to HDB flats or condominiums, while maintaining a more affordable overall price.

Analysis of Regional Price Trends for Landed Properties

Before examining the regional price trends in Singapore, let’s analyse the price trends of Freehold versus Leasehold properties across all regions over the past five years, from Q2 2019 to Q2 2024. In Q2 2019, the average Per Square Foot (PSF) price for Freehold landed homes was $1,317, rising to $1,955 by Q2 2024, reflecting a 32.63% increase. For Leasehold landed homes, the average PSF price grew by 23.64%, from $985 to $1,290 during the same period. Although the graph shows a more significant growth for Freehold properties, this doesn’t necessarily mean they are better financial investments. Freehold homes typically come with a premium due to their tenure. The data includes various types of landed homes, from Inter-Terraces to Detached bungalows, each with different price trends and behaviours across regions. Additionally, each individual property has unique selling points that command its own price. This graph provides a general benchmark of average transaction prices for Freehold and Leasehold properties.

West Region 

Freehold landed homes in the West region experienced an average PSF price increase of 29.6%, rising from $1,210 in Q2 2019 to $1,718 in Q2 2024. During the same period, Leasehold landed homes in the West grew from $760 PSF to $1,095 PSF, marking a 30.6% increase. This higher growth rate for Leasehold homes in the West highlights how different regions exhibit distinct price trends and behaviours. Additionally, price trends can vary within each region depending on the type of landed property.

North-East Region 

In the North-East region, the average PSF price for Freehold landed homes increased by 30.5%, from $1,217 in Q2 2019 to $1,750 in Q2 2024. Leasehold landed homes grew by 25.6%, from $1,255 to $1,687 in the same period. Interestingly, there were two instances between Q2 2019 and Q2 2024 where the average PSF price of Leasehold landed homes surpassed that of Freehold homes. This challenges the notion that Freehold landed homes always perform better and are the superior investment choice.

North Region 

In the North region, Freehold landed homes saw a 37.4% increase in average PSF prices, rising from $932 in Q2 2019 to $1,488 in Q2 2024. Leasehold homes in this region experienced a 25.8% increase, with average PSF prices growing from $743 to $1,002 during the same period.

East Region

In the desirable East region, Freehold landed properties saw a 26.8% increase in average PSF prices, rising from $1,313 in Q2 2019 to $1,793 in Q2 2024. Leasehold properties in the East grew by 24.7%, from $822 PSF to $1,091 PSF during the same period. Although the price growth is relatively uniform compared to other regions, the East region has the highest average PSF prices. This is attributable to the high demand for landed homes in this sought-after area.

Central Region

In the Central region, Freehold landed homes saw an average PSF price increase of 35.9%, rising from $1,503 in Q2 2019 to $2,346 in Q2 2024. During the same period, the average PSF price for Leasehold landed homes grew by 6.4%, from $1,192 to $1,273. Although the overall increase for Leasehold homes was modest, their prices experienced sharp fluctuations, spiking to $1,611 in Q4 2022 and dropping to $1,033 in Q2 2023 before gradually rising to the latest benchmark. These volatile price trends for Leasehold homes are attributable to the abundant availability of Freehold options in the Central region and the recent ABSD increase that priced out Foreign buyers, prompting discerning Singaporean homebuyers to favour Freehold properties for their potential for long-term capital appreciation.

Regional Price Trend Analysis and Insights

Analysing the price trends of Freehold and Leasehold landed homes across the different regions, there are a couple of takeaways that you can use as rough guidelines into choosing your dream landed home. 

Robust Prices of Landed Homes Despite Latest ABSD:

The strong growth in transacted PSF prices of landed homes across all regions indicates that the exclusive landed property market remains resilient to the ABSD increase, continuing to serve as a safe haven for financial investment. 

Freehold Homes Are Not Always the Better Investment Choice:

In the North-East region, there have been three instances between Q2 2019 and Q2 2024 where the average PSF price of Leasehold landed homes exceeded that of Freehold homes. Additionally, in the West region, the average PSF price growth for Leasehold landed homes was higher than that of Freehold homes, with increases of 30.6% and 29.6%, respectively. The key takeaway is to focus on the unique features of the specific property you are considering. It is also crucial to account for the remaining lease duration and to have a sound exit strategy that aligns with your property choice.

More Affordable Options in the North Region:

For those starting their journey in the landed property market, the North region offers a prudent choice due to its more affordable PSF pricing. This helps keep the overall quantum price at a more manageable level. 

Higher PSF Price Does Not Guarantee a Better Investment:

In the North region, despite having the lowest average PSF price for Freehold landed homes compared to other regions, the growth rate from Q2 2019 to Q2 2024 was the highest. Similarly, Leasehold landed homes in the North region experienced a higher growth rate than those in the sought-after East and North-East regions, even with the lowest average PSF price. This highlights that a lower PSF price can still lead to significant investment growth.

Other Considerations To Take Note Of

Beyond understanding the overall price trends for the type of landed property and its region, it’s crucial to consider renovation costs. When driving through landed enclaves, you’ll often see older or even dilapidated homes alongside luxurious, contemporary ones. To simplify your understanding, we’ve categorised landed homes based on their age, along with estimated renovation or rebuilding costs and timelines for completion. For a deeper understanding of these different segments and their implications, click here to read our detailed article on the topic.

Segment 1 Homes: More Than 30 Years Old

Homes in this segment are the oldest and would typically require rebuilding or reconstructing, and consequently would require the highest costs for such, on top of the purchase price of the home. It is estimated that rebuilding or reconstruction costs could range from $1.5 million to $2 million for Inter-Terrace and Semi-Detached homes, which translates to a cost of $350 to $450 PSF.

Segment 2 Homes: Within 20-30 Years Old 

Homes in this category typically require Addition and Alteration (A&A) work or major renovations, with estimated costs ranging from $800K to $1 million, according to builders. This translates to a PSF cost of $200 to $250. The completion time for these A&A or major renovation projects is estimated to be between 6 and 16 months. 

Segment 3 Homes: Less Than 15 Years Old

These homes are generally well-maintained and built to their maximum potential floor size, requiring minimal renovation for plumbing, electrical wiring, flooring, and other minor works. Renovation costs are estimated between $200K to $300K, or about $160 PSF. The total cost may vary depending on the extent of the renovations. Typically, renovation work for Segment 3 homes takes around 6 to 9 months to complete.

Segment 4 Homes: New Homes From Developers 

Segment 4 homes are brand new and move-in ready, requiring little to no renovation. This saves significantly on renovation costs, although the savings are typically reflected in the higher purchase price. Nevertheless, these new homes offer the convenience of immediate occupancy.

In Summary

The Singapore landed property market continues to demonstrate resilience and growth despite economic challenges and recent policy changes like the ABSD increase. The market’s robustness is evident in the consistent demand and rising PSF prices across all regions, underscoring the enduring allure of landed properties as prestigious assets for wealth preservation and growth.

Key takeaways include:

1. Demand Driven by Local Buyers: Singapore Citizens, including many high-net-worth individuals, dominate the market, indicating strong local demand that mitigates the impact of higher ABSD rates on Permanent Residents and Foreign buyers.

2. Regional Price Trends: Different regions exhibit unique price trends, with significant growth observed in both Freehold and Leasehold properties. For instance, the North region, despite lower average PSF prices, has shown the highest growth rates, making it a viable starting point for new investors.

3. Freehold vs. Leasehold: The assumption that Freehold properties always provide better investment returns is challenged by instances where Leasehold properties have outperformed in certain regions. Therefore, focusing on the unique features of each property, considering the remaining lease duration, and having a sound exit strategy are crucial.

4. Renovation Costs: Understanding renovation costs is essential. Homes can range from needing extensive rebuilding to being move-in ready, impacting overall investment costs and timelines.

By staying informed about these trends and considerations, potential investors can make more strategic decisions in the dynamic Singapore landed property market. For more detailed insights, join our Landed VIP Club and stay updated with the latest market trends and expert advice.

The post What’s Next for Singapore’s Landed Property Sector – 2024 Market Forecast appeared first on Insights by PropertyLimBrothers.

Landed properties, including bungalows, semi-detached houses, and terrace homes, have always been highly sought after in Singapore due to their individuality, spaciousness, and prestige. They offer a unique sense of privacy and exclusivity, providing its owners with a tranquil sanctuary away from the hustle and bustle of the city.

Singapore’s limited land supply, coupled with a growing population and strong demand for prestigious homes, has resulted in a scarcity of landed properties. As a result, new launch developments in this segment often garner high interest and have significant potential for price appreciation over time.   

As the Singapore real estate market continues to evolve, the new launch landed segment presents a captivating opportunity for investors and buyers. And one of those newest additions to the segment is Pollen Collection, a 99-year leasehold landed development comprising semi-detached and terrace houses. 

In this article, we will highlight the best features of the development and some of the floor plans available. If you are in the market for a landed home, Pollen Collection might just be the chance for you to own a luxurious and practical living space in one of Singapore’s most coveted locations.

Location Analysis

Pollen Collection is located along Ang Mo Kio Avenue 5 off Nim Road, which is found in the Seletar Hills area near Yio Chu Kang and Ang Mo Kio. The Seletar Hills Estate is a matured estate mainly made up of resale 2-3 storey landed homes, and Pollen Collection is the newest addition that will inject a supply of brand new landed homes, adding new lease of life and bringing younger profile of buyers and families into the area. 

One of the key highlights of the development is its location in the heart of Seletar. Residents can enjoy the tranquillity of nature while being in close proximity to amenities such as Seletar Mall, Greenwich V, AMK Hub, and a variety of F&B establishments. 

Pollen Collection is a rather convenient location for car owners, with a short drive to connect to the Central Expressway (CTE) and just a 20-minute drive to the CBD area. Prospective buyers might have some concerns about the noise levels of units in close proximity to the CTE. However, these concerns are alleviated through the design of the house and windows, which help to mitigate noise from outside the unit and give owners a sense of comfort and privacy. 

The area is slightly further away from the main roads and public transportation, which offers tranquillity, privacy and exclusivity that is highly valued by landed homeowners. For residents whose children need to rely on public transportation to get around, the completion of the Cross Island Line (CRL) Phase 1 in 2030 will put Tavistock MRT station roughly within 1.2km of Pollen Collection.

For families with school-going children, the development is also surrounded by many schools within a 2km distance, including Rosyth School, Anderson Primary, Presbyterian High, Mayflower Primary, Fernvale Primary, Serangoon Garden Secondary, Nanyang Polytechnic, ITE College Central, and Anderson-Serangoon JC.

The prestigious landed enclave that Pollen Collection is located in is demarcated by Yio Chu Kang Road, Seletar Road, Ang Mo Kio Avenue 5, and the CTE. The enclave is divided by Saraca Road, with zoning for 2-storey mixed landed houses to the north and 3-storey mixed landed houses to the south. This unique land zoning by the URA ensures that the area will not be developed into condominiums and that the landed developments within the enclave are limited to a maximum of 3-storeys.

This zoning has several benefits for Pollen Collection’s future residents. Firstly, it guarantees that the surrounding environment will remain peaceful and exclusive, as only low-rise landed houses are permitted. Secondly, Pollen Collection has fully maximised the height in accordance with the URA envelope control guidelines, providing residents with more living space and potentially higher resale value than the 2-storey homes in the area. 

Ultimately, the combination of the exclusive landed enclave and thoughtful land zoning makes Pollen Collection an exceptional choice for those seeking a luxurious, low-rise lifestyle in a well-connected location.

For residents who love green spaces, there is a long strip of greenery south of Pollen Collection. Nim Meadow Park and Ang Mo Kio Linear Park stretches over a kilometre in distance. Luxus Hills Park, which is right beside AMK Linear Park, is also connected to the Park Connector Coast to Coast Trail. The trail eventually leads to Sengkang Riverside Park around 2.7km away, which also connects to Punggol Waterway Park and Coney Island. This means residents are never short of green spaces to get active and fit.

Site Plan Analysis

Pollen Collection’s exclusive set of landed houses promises future residents a high degree of privacy in a thoughtfully designed neighbourhood. The landed houses are arranged in rows along Pollen Crescent, which serves as a dedicated driveway  for the residents of Pollen Collection. This unique design feature not only distinguishes the new development from older landed houses in the enclave but also provides an intimate sense of community for residents. Each home boasts a spacious layout and is surrounded by lush greenery, adding to the overall sense of privacy and exclusivity. 

At the time of writing, only a limited release of 45 landed homes from the project is available for sale. With brand new landed homes being in very limited supply, Pollen Collection presents Singaporeans an opportunity to enter into the landed segment and to own a landed home of their own. 

Pollen Collection’s landed houses are predominantly designed with a north-south orientation, with a slight tilt towards the west. This orientation is ideal for minimising the impact of harsh morning and evening sun rays, while still allowing for ample natural light from the east in the mornings. The clever design not only enhances the livability of the properties but also reduces the energy consumption of the homes by minimising the need for artificial lighting and cooling during the daytime. Overall, the north-south orientation of Pollen Collection’s landed houses is a smart and practical design feature that contributes to their light-filled and airy interior.

Price Analysis

For this section on price analysis, we will focus on the trends of terrace houses and semi-detached houses in District 28 (Seletar, Yio Chu Kang) compared to the rest of the OCR (Outside Central Region) market. Specifically, we will compare the pricing trends of 99-year leasehold terrace houses and semi-detached houses in District 28 with those in other OCR areas. By examining these trends, we can gain insights into the current and future values of these properties, as well as identify the attractiveness of Pollen Collection.

*The growth rate is derived by taking the difference between average $PSF price of all transactions (new sale, subsale, and resale)  in Q1 2023 and 2014 and expressed as a percentage. 

In the big picture, we see that the average $PSF price of all transactions of 99-year leasehold terraces and semi-Ds in D28 has appreciated greatly (112% since 2014) compared to the rest of OCR (18%).

Interestingly, this shows that prices of leasehold landed homes did appreciate significantly in the Seletar area relative to other areas in the OCR. It is also important to note that D28 leasehold terraces and semi-Ds have a higher average $PSF than its counterparts based on just the Q1 2023 data.

This inversion in prices (D28 higher than the rest of OCR) may be due to the newly launched landed houses in the area, such as Nim Collection in 2018 and Pollen Collection in 2022, which fetched a premium when compared to the prices of resale landed across the rest of OCR. The average $PSF for 99-year leasehold terraces and semi-Ds in D28 in Q1 2023 is $2,211. In comparison, the average $PSF of comparables in the rest of OCR is $1,027. The price disparity of 115% observed here is largely due to newer launches in D28 compared to older landed homes in the rest of OCR. Injection of new landed homes supply brings new lease of life and new demand from younger families to the area which supports prices.

A newly developed landed home saves you the trouble of coordinating the reconstruction of a landed home yourself. It also puts your mind at ease in terms of the condition of the home and the structural integrity of the building. For some investors and prospective buyers, this peace of mind when it comes to purchasing a landed home is well worth the additional premium. Furthermore, newly developed landed homes like Pollen Collection offer customer care services within 12 months from key collection. This gives buyers a peace of mind as there will still be customer support from the developers after the handing over of the property, a feature that is not available in the resale landed market.

*The growth rate is derived by taking the difference between average $PSF  price of available transactions in 2023 and 2018 and expressed as a percentage. 

Looking at the performance of the nearby Nim Collection, which is a similar 99-year leasehold landed development, average prices have grown by 40% since the developers launched it in 2018. Zooming into specific case studies, we found that most of the units bought directly from the developers have appreciated between 20-30% in a span of 4-5 years. 

For example, an Intermediate Terrace at Nim Terrace standing at 1,615 sqft was purchased from the developers at $2.808 million ($1,739 PSF) in May 2019. It was resold earlier this year in February 2023 for $3.488 million ($2,160 PSF), translating to a 24% growth in slightly less than 4 years. Another Intermediate Terrace at Nim Rise standing at a slightly larger 1,905 sqft was purchased from the developers at $2.762 million ($1,450 PSF) in April 2018. It was resold in October 2022 for $3.56 million ($1,860 PSF), which translates to a 28% growth in slightly under 5 years. 

Floor Plan Analysis

In this section, we will cover the different floor plans available in Pollen Collection. We will be covering the Intermediate Terrace and Corner Terrace layouts. Do note that more variants are available and we are selecting a representative few. The rest of the floor plans and more detailed information can be found here.

We highlight a few key common features when it comes to the landed homes in Pollen Collection. First, the car porch on the first floor serves as a private area to park your car, meaning that you no longer need to worry about the issue of insufficient roadside parking like in some landed estates. Furthermore, the roads are now made wider by about 0.8 to 1.4 metres under the new LTA guidelines. The private car porch is able to fit two cars minimally and features isolators for the installation of EV chargers. This ensures the car porch is future-ready, aligning with the Singapore Green Plan 2030, which includes a robust initiative to transform our vehicle population to electric models. Next, the landed developments in Pollen Collection feature a mezzanine floor and an attic, which effectively makes it a “5-storey home” despite it being officially a 3-storey home. Finally, a private lift is available, which abates mobility concerns of multi-generational families moving from floor to floor.

Type A Intermediate Terrace

The Type A Intermediate Terrace boasts a land area of 150 sqm (approx. 1615 sqft) and a generous estimated floor area of 381 sqm (approx. 4101 sqft). Recent transactions of this size in the development were recorded at $3,538,000 in December 2022 ($2,191 psf) and $3,650,000 in February 2023 ($2,261 psf). 

The first floor of this stunning terrace home is primarily designed for communal living, with a spacious, light-filled and airy living dining area featuring 6-metre high ceilings that leads to both dry and wet kitchens. The Type A Intermediate Terrace has most of its common living space on the first floor, making it an excellent space for hosting guests as the private living spaces are segregated to the upper floors. The back of the first floor features an open terrace, offering a back yard space for the family to do some gardening. Additionally, a powder room and lift are located in the common area for added convenience. The first mezzanine floor features a junior master bedroom with an ensuite bathroom and an open terrace, perfect for enjoying natural light and fresh air. 

The second floor of the Type A Intermediate Terrace houses the master bedroom and bedroom 1, both of which are ensuite bedrooms. The master bedroom features a luxurious bathtub, perfect for relaxing after a long day. There is an open terrace that allows ample natural light to enter the floor. On the third floor, there are two additional ensuite bedrooms. The attic boasts an open roof terrace, providing an exclusive space for family and friends to enjoy the panoramic views of the surrounding area. There are also solar panels provided at the roof to help residents reduce their electricity bills.

Type A2 Corner Terrace

The Type A2 Corner Terrace variant has an additional 146 sqm of land size (1571 sqft) as compared to the Type A Intermediate Terrace, which includes a swimming pool, turfing, and open terraces on the first storey. In terms of floor area, the corner terrace has an additional floor area of 40 sqm (430 sqft). Given the larger land size, homebuyers with certain lifestyle choices may appreciate and enjoy the additional facilities such as the swimming pool as well as additional spaces to set up a BBQ area, a lawn, or a garden. 

Since landed homes with large land sizes are scarce in Singapore, they typically command a price premium. Investors and homebuyers working with more budget may consider this option if they like the specific spot in the development or the additional outdoor space that comes with it.

Closing Thoughts

Pollen Collection is a landed home designed with future-proofing considerations in mind to enable buyers the ease and flexibility to add more built-up areas internally in future (if required) without having to do major construction works. If you are currently residing in an HDB flat or private condominium and intend to future-proof your housing plans by moving into a larger home comprising 5 ensuite bedrooms with 4,100 sqft of space in the next 2 years, Pollen Collection offers a unique opportunity for large families to live together in a luxurious and intimate setting. 

In today’s market, it is no longer possible to find the kind of space offered at Pollen Collection (4,100 sqft of estimated floor area) in other property types within the similar price range. The space includes spacious living and dining areas, dry and wet kitchens, 5 ensuite bedrooms and seamless connection to outdoor terraces that can comfortably accommodate about 7-10 family members, making Pollen Collection one of the best options in the market for extended families looking for an abundance of space to live together. Furthermore, there is already a lift to all levels built in, which is hard to come by in other resale houses. This is another future-proofing feature offered by Pollen Collection, providing convenience to family members of all ages.

With its spacious and thoughtfully designed layouts, residents can enjoy ample living space, privacy, and flexibility to adapt to their evolving needs. The exclusive landed development is conveniently located in a serene and peaceful enclave, yet still close to key amenities and transportation routes. The attention to detail in the design and construction of the homes ensures that each residence is both functional and aesthetically pleasing, offering residents a truly elevated living experience. Pollen Collection is a great choice for people looking to fulfil their aspirations of owning their first brand new landed home.

We hope this article has given you a better understanding of the luxurious homes available at Pollen Collection. We recently concluded our live and exclusive PLB x BSEL seminar, where PropertyLimBrothers CEO Melvin Lim did a deep dive into Singapore’s landed property landscape and shared insightful analyses regarding the growth potential of the segment. For more information on Pollen Collection, speak to our consultants or sign up here for a showflat visit.

If you’re interested in learning more about the latest developments in the Singapore property market, we encourage you to check out our educational YouTube channel, NOTG, and special webinar series, where we share insights and expert analysis on various aspects of the real estate industry. Do also join us at our upcoming in-person seminar where we will be sharing more insights and opportunities in Singapore’s landed property market.

For those looking for personalised advisory services, our team of experienced real estate consultants is always available to provide professional guidance and advice tailored to your specific needs. Feel free to get in touch with us and let us help you with your property decisions. Thank you for reading, and we look forward to hearing from you soon.

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Good Class Bungalows (GCBs) are more than just a status symbol.

It is a multi-generational home.

A legacy asset.

A piece of identity.

A labour of love and art.

For most in the public eye, it is something to be envied, coveted, and perhaps jealous of. While those emotions undoubtedly exist in the hearts of some, we focus our attention on the idea and act of building. Building a multi-generational home.

Owners of GCBs are typically C-Suite Executives, its Board-of-Directors, Business Owners, or their Scions. These people are all builders. Building businesses, jobs, and some say value. But when it comes to building a home, it is a much more private affair. It becomes more focused on the individual (family), rather than the communal good. And it should be so. It is a home after all.

In this article, we focus on the architecture and aesthetics of GCBs. We cover how architectural design styles should be made to suit the owner’s vision of a home and how aesthetics matter in building the desired ambience.

The Concept of Design

Design is first based on the idea that a user exists, and the design should cater to the desires and whims of the user. Of course, the designers are not mindless; part of the design process involves taste, skill, and style. Thus, the choice of the architects and interior designers matter.

When it comes to GCBs, the point isn’t (usually) the standard look, neither has it got to look grand. The point is that it has to be personal. It has to be and manifest you or the ideals and values you embody. Many interpret the aesthetics of architecture as merely a look or style that they like. Perhaps because it makes you feel the warmth of home or that things are in order. But inevitably, each style embodies a moving history that is continuously crafted by our every-day use.

Design and architecture is about marrying function with form. Every-day use and personal values & ideals. It is more than just the looks or its utility. To every individual whose ambition and aspiration is to build a GCB home, this article is for you. It is never too early to envision a dream home. Rather, it might motivate you to work even harder to get to where you want to be.

Palaces & Spaceships

We won’t talk about styles in the academic sense in this article. The history lesson might bore most and lose relevance. Instead, we will discuss the architecture of GCBs in plain English. GCBs in Singapore typically resemble palaces or spaceships. A blast to the past or back to the future.

Homes are made of fond memories. Travels, whether physical or fantasy. Dream homes seldom embody the mundane, since they are aspirational. Romantics and literatis might love palaces because they remind them of the roots of culture. Or a fond nostalgic moment in their travels. Palaces of a multitude of styles can be found in Singapore.

GCB palaces are built in Gothic, Greek, Tudor, Spanish, British, Malay, Indian, and Chinese styles. The list goes on. Each style is elegant because it embodies their own ideals. The stoic and academic Greek temple. The sunclad coastal Spanish casa. An istana fit for a sultan. The humble abode of a certain kung-fu master.

This dream to become royalty with their own fiefdom is literally manifested when that plot of land is bought, and that palace built. Whether a conscious effort to be a metaphorical “lord” of the land, or driven by the subconscious pursuit of greatness, these palaces across Singapore are tributes to the toil and genius of a great many families. Some of which might have taken generations to get to where we see they are today.

These dreams are not lofty, and should not be mocked or taken as merely eye candy.

Take them as inspirations, and be brave enough to fight and manifest them in life.

Coherence is another key aspect of architectural beauty. Having the style consistent throughout the Bungalow, including its interior, manifests the look and fantasy into a tangible lifestyle. A disjuncture between interior and exterior might confuse the mind, leading to erk-feelings of messiness. It is possible, however, to merge modern and palatial styles. It need only be consistently applied for effect.

Spaceships are still rarities in Singapore’s GCB scene. Some might have large Iron-man inspired modernist mansions, but few daringly futuristic. Of course, for practical reasons, perhaps the resale audience is much smaller for this group of Sci-Fi fans of Star Trek, Dune, or Star Wars. Nonetheless, being surrounded by space age inspired architecture can be a source of inspiration as well.

Inspired & Inspiring.

You might find yourself never lacking new business ideas, creative thoughts, or plans to make the world a better place. It might sound overly idealistic but for some, it might just do that. Take a look at Elon Musk’s Home in Los Angeles (photo below). The curving arcs that belong to our very own Tony Stark in this universe. I am not sure where the idea of launching a Tesla car into space came from, but perhaps this has got something to do with it?

Memes aside, Elon is definitely an inspired man. His Starlink fleet is no small feat. And some might argue that he deserves that top billionaire seat for all his contributions to the contemporary world thus far.

To the futurists and innovators of Singapore, having your own spaceship to captain is not just a dream. Assemble your architect crew and get building. Your ship will be a wellspring of ideas and ingenuity.

The architecture of Singaporean GCBs is beautiful and manifold. Plenty are made of dreams of palaces and spaceships. Our understanding of it need not be limited to “posh”, “atas”, and “luxurious”. GCB owners are humans too, and humans are made of dreams.

Aesthetics and the Mind’s Eye

When it comes to the aesthetics of luxury homes, the architectural exterior is only the beginning. On the inside resides the soul of the structure. Decor, art, the selection of colours and materials underscore and hold up the spirit of the building. Often, it is inspired by the same style, timeline, and culture. The coherence between the interior and exterior eradicates tension and smooths the narrative.

Lighting and arrangement are cornerstones of building a great vibe and atmosphere. In Chinese Geomancy, or Feng Shui, these are key elements of the system. Directional facing and furniture arrangement are ways to play with light and movement. Doing it the right way creates “flow”, and the opposite will result in chaos and clutter.

In the end, aesthetics does not just serve to please the eye, but all of your senses. Your mind needs to be relaxed at the scene of well arranged furniture and calm lighting. Not pockets of shadow and furniture blocking the way, creating frustration. This goes back to the idea of coherence. The arrangement and flow is in-tune with your own daily life and movement. Each small little detail matters.

Closing Thoughts

To close, we briefly cover the architecture of GCBs in Singapore. As palaces and spaceships are things of dreams, so are GCBs. That is not to say that they are impossible to achieve. We also explain how styles play a key role in manifesting the owner’s desired vision and values in the home. Aesthetics go beyond the visible into the realm of emotions and thoughts. We hope that this article gives you a glimpse into the world of GCB architecture and their beauty.

If you are deeply interested in this topic, I highly recommend the book “The Architecture of Happiness”. It is a good starting point for understanding the deeper meaning and value of architecture to the human being. We use here the core concepts of memory, elegance, and coherence found in the book.

Contact us here if you wish to chat more with us!

The post Landed Luxuries 4: Architecture & Aesthetics appeared first on Insights by PropertyLimBrothers.

TLDR: Did you know you could stay in a Ritz-Carlton branded development? Or own a St. Regis condominium and perhaps catch a glimpse of Kim Jong-Un (if he ever comes to Singapore again)? If you have always wondered why there are condominiums carrying the name of famous hoteliers, you have come to the right article.

Branded residences is not a new phenomenon, but it is so rare in Singapore (only 4 developments!) that it is understandable why this type of residence has gone under the radar.

To sum it up in a sentence – branded residences marry luxury living with personalised service. Keen to find out more? Read on below.

What are branded residences?

Branded residences are luxury homes that are affiliated to a well-known brand. They are generally a partnership between the brand (usually a hotel) and the developer, whereby the brand grants a licence to the developer to market and sell residences that will carry the name of the brand.

By being associated with a reputable brand, these developments signal a standard of service and quality that the brand stands by. This instils buyer confidence, as buyers are assured of a quality product that also promotes the same values and lifestyles they are familiar with.

Aside from the impressive design and quality of the actual product, the added value of a concierge service is the key differentiating factor of branded residences. Boasting service offerings that can sometimes even outshine hotel offerings, this concierge service acts more like a personal butler, settling the needs of busy individuals. This appeals to high net worth individuals, as well as time-poor buyers who appreciate the time saved on mundane tasks like grocery shopping.

In the case of hotel-branded residences, the facilities and concierge services are managed by the hotel, thus assuring owners of the quality and well-kept maintenance of the facilities and amenities.

Evolution of branded residences

Branded residences first appeared way back in the US in the 1920s with the Sherry-Netherland Hotel on New York’s Fifth Avenue.

A few years later saw the opening of The Carlyle Hotel and private residences in 1929. Nothing happened in the years after that as the concept of branded residences took a while to catch on. It only became more mainstream when Four Seasons came onboard with their hotel condominiums in Boston in the mid-1980s.

After selling out their hotel branded residences in Boston, Four Seasons realised the untapped potential in the market, and quickly expanded its portfolio of branded residences in North America. To also establish its international presence, they then integrated Asia-based Regent Hotels into their portfolio. Because of this head start, Four Seasons is one of the leading players in the branded residences scene.

Once the concept of branded residences caught on, hoteliers like Marriot, Hilton and Accor quickly entered the market, and continue to dominate the industry till today.

Today, there are more than 400 branded residences globally. That amounts to about 55,000 residential units. Majority of the branded residences are by hoteliers, accounting for 85% of the schemes.

However, in recent years, non-hotel brands have jumped on the bandwagon too. Aspirational brands ranging from celebrity designers to fashion houses and even luxury cars are coming up with their own branded residences. In fact, the brand that placed second when comparing the number of branded residences schemes, is actually YOO, a design company.

Marriott is still the largest player in the market, and will defend its rank with the many projects in its pipeline. Accor, the parent brand of the upcoming Pullman Residences in Singapore will move up the ranks, placing second.

Some other interesting non hotel brands that have started their foray into the branded residences scene are

• Luxury car brands like Porsche, Aston Martin and Bentley

• Fashion houses like Versace and Missoni Baia

Global distribution of branded residences

The US, being the birthplace of branded residences, continues to be the biggest single country market, accounting for about 32% of the schemes.

Rapid expansion of branded residences is also seen in other parts of the world, particularly in Asia Pacific and the Middle East. As the economy in these regions flourish, and domestic wealth rises, the new rich who are also brand conscious, are buying into these branded residences.

Asia Pacific accounts for 30% of the schemes, but in Singapore alone, we only have 4 branded residences – St. Regis Residences, The Ritz-Carlton Residences at Cairnhill Singapore, The Residences at W Singapore Sentosa Cove and the new Pullman Residences.

Why are hotel-branded residences growing rapidly?

As an industry, developers have been looking to shift away from the tangible (bigger pool, bigger gym etc), because these physical aspects of a development have pretty much become a given.

Developers understood that homes mean more than just the brick and mortar structure of the house. It was also important to reflect the values and desired lifestyles of the buyers.

Along came branded residences, a win-win formula, where buyers, developers and hotels all benefit.

For buyers, it is a concept that offers them the opportunity of owning a property that is associated with a luxurious hotel whose values and lifestyle they know and believe in. Branded residences also provide services that closely mirror what you get at a hotel. And that appeals to the hassle-free lifestyle desired amongst today’s time-starved population.

And developers are keen on this concept because branded residences have proved its ability to draw higher premiums when compared to non-branded developments. This is because the brand association helps to draw in buyers who are already familiar with the brand, and confident in the quality and standard of the development. Less effort is required to convince buyers, and they are willing to shell out top dollar for the perceived quality.

As for hotels, they are able to create an additional income stream from the licensing and management fees. Through branded residences, they can diversify their offerings to reach a different group of buyers who love what the brand stands for, and want to extend that into their homes rather than just hotel stays.

This is supported with insights from the 2022 Knight Frank survey on branded residences. When polled on the key reason why buyers would purchase branded residences, the top answer was the promise of hotel-like service and amenities. Buyers also believed in the potential for high-yield returns, in part due to the hotel management and maintenance of the building.

The promise of quality service, amenities and management differentiates branded residences from the already crowded global marketplace for luxury properties. Such a product also fills a gap in the market for time-poor consumers. This is why international buyers are willing to pay a premium for branded residences. This makes a case for developers and hotels to continue expanding into this area.

Key selling points of branded residences

Branded residences are a result of a partnership between developers and hotels. The hotel brand grants a licence to the developer, and is heavily involved in the design of the building and service offering. The developer is then in charge of the construction work, and marketing and selling the residences.

There are 3 broad types of hotel-branded residences:

• Co-located – the branded residences are located on the same site as the hotel

• Condo hotel – the branded residences are located within or may be integrated with the hotel building.

• Standalone – the branded residences are located on a separate site to the hotel. An example of this in Singapore would be Pullman Residences.

All three types of branded residences anchor their selling points on the quality of the development and service offering similar to that of 5 and 6 star hotels.

In terms of the actual product, developments carrying the name of a reputable brand are typically designed with top-of-the-line fittings and based in prime locations. For example, the branded residences in Singapore are all located in prime districts 9-11, and Sentosa as well.

But what sets branded residences apart are the service offerings. These are usually categorised into base or core services, and ala carte or on demand services.

Base services are the usual services and amenities you would come to expect in luxury developments, such as security, concierge services and provision of WIFI. These would have been included in the service charges or monthly management fee owners have to pay.

The ala carte services are the standouts. These come at additional cost, and can range from housekeeping to dog walking, to even meals prepared by a private chef. It is basically a butler service you can opt in for, that will take care of all the mundane needs so you can focus on the more important things in life.

Here are some examples of services found in branded residences.

Buying into branded residences also comes with being upgraded to a VIP member of the hotel’s loyalty programme. Benefits include free upgrades or guaranteed rooms for when they travel. This is another major selling point, especially for the globe-trotting consumers of today.

Branded residences in Singapore

St. Regis Residences Singapore

St. Regis Residences Singapore was the first branded residence developed in Singapore. It was launched in 2008 to much fanfare and was the first project to cross the $3,000 psf threshold in Singapore. Nestled in prime District 10, St. Regis Residences is a co-located type of branded residence, as it shares the same plot as the hotel.

Developer: Richmond Hotel Pte Ltd (subsidiary of City Developments Limited)

Architect: RSP Architects Planners & Engineers Pte Ltd

District: District 10

Address: 31 & 33 Tanglin Road 247912

Property Type: Condominium

Site Area: 16,694 sqm / 179,691 sqft

Tenure: 999 years

No. of Units: 173

No. of Storeys: 23

TOP date: September 2008

Unit mix: 3 Bedrooms, 3+1 Bedrooms, 4 Bedrooms, Sky Suites & Villas

Site plan:

The Ritz-Carlton Residences @ Cairnhill Singapore

The Ritz-Carlton Residences @ Cairnhill Singapore was launched a year later in 2007, and was the first freehold branded residence development. Unlike its counterpart, the Ritz-Carlton Residences was a much smaller development, only yielding 58 units.

Developer: Hayden Properties (A subsidiary of KOP Group)

Architect: Eco-Id Design Consultancy Pte Ptd

District: District 9

Address: 65 Cairnhill Road

Property Type: Condominium

Site Area: 5,481 sqm / 59,000 sqft

Tenure: Freehold

No. of Units: 58

No. of Storeys: 36

TOP date: 2011

Unit mix: 3 Bedrooms, 4 Bedrooms, Junior Penthouse, Superior Penthouse

Site plan:

The Residences at W Singapore Sentosa Cove

The Residences at W Singapore Sentosa Cove is the only 99 year leasehold project amongst the branded residences in Singapore. The unique selling point about this branded residence is the waterfront living that none of its peers could compete on. A low rise development, The W Residences was built on a huge plot of land, amounting to 228 units, greater than the earlier two developments.

Developer: Cityview Place Holdings Pte Ltd

Architect: Eco-Id Design Consultancy Pte Ptd

District: District 4

Address:  Ocean Way

Property Type: Condominium

Site Area: 23,257 sqm / 250,336 sqft

Tenure: 99 years leasehold

No. of Units: 228

No. of Storeys: 5-6 storeys

TOP date: 2011

Unit mix: 2 Bedrooms, 3 Bedrooms, 4 Bedrooms, Penthouses

Site plan:

Pullman Residences Singapore

Pullman Residences is the newest kid on the block, slated for completion in 2023. Also boasting freehold status, to date, Pullman Residences is the biggest branded residence in Singapore. It also has a wider mix of units available, ranging from 1 Bedroom to 4 Bedrooms. You can read more about our take on Pullman Residences in our next article.

Developer: EL Development (Horizon) Pte Ltd

Architect: ADDP Architects LLP

District: District 10

Address: 18 Dunearn Road Singapore 309421

Property Type: Condominium

Site Area: 8866.9 sqm / 95,443 sqft

Tenure: Freehold

No. of Units: 340

No. of Storeys: 30

Estimated TOP date: 31 Dec 2023

Unit Mix: 1 Bedroom, 2 Bedrooms, 3 Bedrooms, 3+S Bedrooms, 4 Bedrooms, Penthouse

Site plan:

Price analysis

Branded residences tend to command a premium price due to its differentiated offering of hotel-like amenities and services. Insights from a 2021 Global Buyer survey done by Knight Frank, it was revealed that 39% of residential real estate buyers are willing to pay a premium for a hotel branded property.

The amount of premiums that branded residences are able to fetch over non-branded developments can go up to 31%, but this varies significantly by location.

There are multiple factors that affect the branded residences’ ability to draw a premium such as the tenure, or the existence of special features like waterfront living. But more importantly, the highest premiums are usually found in emerging markets.

To the new rich in these markets, luxury brands are immensely attractive, as a way to signal their status and as long term investments. They view being able to buy into luxury products as a mark of success. The disparity in standards between the non-branded developments and branded residences may also be larger, hence, justifying the high premiums charged.

For example, the Ritz-Carlton Residences in Bangkok are asking at prices that command a premium of over 80%. In Almaty, Kazakhstan, this goes up to 150%.

In contrast, in more mature markets, luxury developments are a dime and a dozen. Existing developments already boast high standards of quality, which reduces the luxury disparity enjoyed in emerging markets. As such, the premiums in these markets tend to be lower. In cities like London and New York, premiums drops to 8%, and 15% respectively.

What about Singapore?

Being a mature market and with stiff competition from other luxury developments, branded residences in Singapore are unlikely to be able to command the kind of premiums in emerging economies.

Let’s compare the prices of Pullman Residences with other luxury developments that have been newly launched. From a glance, the pricing is on par or slightly above the prices of luxury apartments in the prime districts.

Comparing Peak Residence and Pullman Residences, both are district 11 projects with freehold status. Pullman Residences is asking at a 20% premium over Peak Residences, which is a reasonable premium to ask for, considering the luxury status of a branded residence, and the proximity to a MRT interchange. This showed clearly that Pullman Residences was careful and strategic in its pricing, and understood the market well enough to not overprice their units.

With the high premiums, are branded residences good investments?

Let’s look at the price transactions of branded residences from their launch to current asking prices.

While initially well-received, the branded residences concept did not pick up as quickly in Singapore as expected from a metropolitan city-state. From the table, you might notice straight away that the prices of branded residences do not follow a linear graph of positive growth, and in fact have shown a dip in PSF as compared to their launch prices.

There are two main reasons for this:

1. High premiums

Branded residences tend to command a higher premium due to its association with a hotel brand that bears a mark of distinction, and for its unparalleled services. In other cities in Asia like Bangkok, Phuket and Kyoto, branded residences can command more than 30% than the average market prices. In markets such as Singapore, Tokyo and Hong Kong, they usually see lower premiums.

The main competitor of branded residences is other luxury developments, which are very well-established in Singapore. With the high standards of developers in Singapore, the luxury projects already set a high benchmark in areas like hotel-grade amenities and onsite management, so much so that it becomes a given for any high-end development.

The differentiating factor of branded residences becomes less compelling when buyers compare between a luxury development versus a branded residence.

When St. Regis Residences and Ritz-Carlton Residences were launched, they charged a high premium. First movers were bought in by the concept, but the general target audience of investors were not as convinced by the proposition to pay the high premium. This resulted in prices dropping in subsequent transactions.

2. Unfortunate timing

St. Regis Residences and Ritz-Carlton Residences were launched in 2006 and 2007 respectively. They were launched to great fanfare, and smashed psf records in Singapore. St. Regis Residences set a record of transactions at $3,000 psf, and Ritz-Carlton Residences later toppled that by crossing the threshold of $4,000 psf.

If you recall, since 2006, the residential property market went through two downcycles. The first being the subprime mortgage crisis that started in 2008, which crippled economies globally. Naturally, the owners of units at these two developments held onto their properties since prices were falling.

When the economy recovered, and they wanted to sell, Singapore’s property market was then hit by the cooling measures introduced by the government in 2013. This was one of the most critical rounds of cooling measures, and was the only time the cooling measures caused the property market to dip.

The Additional Buyers’ Stamp Duty (ABSD) on foreigners, PRs, and Singaporeans’ second property purchase affected investor demand. Total Debt Servicing Ratio (TDSR) was also introduced to cap the loaning power of buyers.

Like all luxury developments, the main target audience of branded residences are foreign investors, or people with more than 1 property. As such, these measures had a severe impact on the demand and prices, causing a drop between 25% and 30%.

While prices have recovered since then, they are still below their initial launch prices.

So should we still invest in branded residences? 

Owners of units at branded residences have strong holding power, they are happy to wait out the down cycle because they see this as a long term investment.

Their patience has paid off as there has been a resurgence for branded residences. Transaction prices in terms of PSF have been rising steadily over the last few years, even during the Covid-19 pandemic.

This renewed interest in branded residences in the last few years is largely due to the growing population of ultra and high net worth individuals.

We expect this trajectory to continue, with reports on Singapore recording the second highest growth in the number of ultra-wealthy people in Asia, and third globally.

These affluent individuals are flocking to Singapore because of our reputation as both a tax haven and a safe haven for high profile property investments. They are discerning investors, and always on the lookout for best-in-class residential properties.

Branded residences fit the bill perfectly due to its association with a prestigious brand, and the promises of luxury and quality that defines hotel living. Such qualities tend to attract a wealthy rental pool, and in turn, generate long term returns for investors. The long term investment horizon of a branded residence is a key reason why investors are willing to pay a premium.

Adding on to that, Covid-19 has really changed the way we live and play. The property is no longer just a physical asset for homeowners. It is not just a place to rest your head at night, but a safe space for you to retreat into.

That longing for a worry-free and hassle-free sanctuary is fulfilled by a branded residence’s promise of quality, privacy and personalised service.

So we do think branded residences are here to stay, but perhaps with a few changes in the future.

Keep an eye on the future of branded residences

As the branded residences sector continues to flourish and expand rapidly, there will be more brands wanting to enter the market. Although the market is currently dominated by hoteliers, we should expect to see non hotel brands coming onboard.

We already know of luxury automotive brands like Aston Martin Residences and Bentley Residences. Starchitects would also be a key contender for branded residences with big names like Zaha Hadid Architects and Jean-Michel Gathy. We even have Walt Disney and celebrities like Pharrell Williams in discussions for their own branded residences.

But as the sector matures, more focus will be placed on creating unique experiences for homeowners. Concierge service may become a staple in all luxury developments, so branded residences will have to continue to innovate to stay ahead of the pack.

What might be really applicable to Singapore’s market is the push on culinary experience. With Singapore’s love of food, luxury residences tied to celebrity restaurants like Nobu or Wolfgang Puck may be a natural way to win consumers’ hearts. This is also backed by global research done by Savills, that shows culinary experiences ranking as the top choice among high net worth individuals.

It will be exciting to see how the world of branded residences and the luxury residential market change in the years to come.

We hope that you have enjoyed our article on Branded Residences. If you are interested to know more, feel free to reach out to our Property Consultants for an in-depth analysis and discussion. We will be thrilled to share more about our thoughts and advice. Thank you and see you next time!

The post Branded Residences – A Home & Hotel In One appeared first on Insights by PropertyLimBrothers.

Good class bungalows, or GCBs in short, are one of if not the most exclusive and esteemed type of landed housing in Singapore and possibly in the whole of South East Asia. GCBs not only represent a symbol of prestige, but one may consider it the apex of the landed housing segment.

In a nation where “shoebox” apartments are the norm, and already commanding soaring prices, it is no secret that GCBs come with hefty price tags to the tune of tens and hundreds of millions of dollars, and what we would like to delve deeper into today is the price trends of GCBs in the different regions and districts of Singapore. Are there any similarities in price behaviours, do they all transact at a similar price quantum, or is there any price hierarchy across the different areas?

What are Good Class Bungalows?

To preface this article, we first have to understand briefly what exactly entails as a Good Class Bungalow.

There are several guidelines that differentiate GCBs from the usual bungalows in Singapore, such as site coverage and building setback. Without going too deep into the technicalities, there are two key parameters that may help you identify a GCB – Plot Size and Location.

Plot Size

As per the Urban Redevelopment Authority (URA)’s guidelines, for a bungalow to be defined as a GCB, it has to have a minimum plot size of 1,400 sqm (which translates to approximately 15,069 sqft), with a plot depth and width of 30 metres and 18.5 metres respectively.

Location

However, not all bungalows with a plot size of 1,400 sqm or more are automatically classified as a GCB.

More importantly, it also has to be within the 39 gazetted areas set aside by the URA for GCBs (or otherwise referred to as Good Class Bungalow Areas (GCBAs) – this came on the back of the government’s efforts to preserve the environmental quality and low-rise character of these select areas.

GCBs can be found in Singapore’s Prime Districts, D10 and D11, along with the famous districts of D20, D21 and D23. Within these districts, GCBAs would include areas such as Chatsworth, Cluny Road, Ridley Park, and King Albert Park, to name a few.

High Profile GCB Transactions

If you have been following the news, you would have been aware of some of these recent headlining GCB transactions by prominent figures such as:

• TikTok CEO, Chew Shou Zi – S$86million GCB at Queen Astrid Park

• Razer CEO, Tan Min-Liang – S$52.8million GCB at Third Avenue

• Grab CEO, Anthony Tan & family – S$40million GCB at Bin Tong Park

Coincidentally, most of them appear to be in technology-related businesses, including the buyer behind 2021’s record-breaking GCB transaction, a S$128.8million GCB, who happens to be the wife of Nanofilm Technologies’ founder.

It is evident that GCBs have been all the rage lately, consistently making news headlines, with buyers more than willing to shell out astronomical sums for them. That got us interested in learning how that has affected GCBs’ prices, and there is only one way to find out:

GCB’s Price Behaviour

Average $PSF (All GCBs)

As of 2021, the overall average $psf and price quantum for GCBs is $1,624 and S$34.9million, respectively.

1. Analysis of the past five years

We can see that the overall average $psf trend for GCBs in the last five years (2016 to 2021) across all 39 GCBAs has remained relatively stable with a gain of +7.13%, reflecting its attribute of being a good store of value and hedge against inflation.

2. Since the COVID 19 (year 2020)

In addition, we have noticed that even with the COVID’19 fall out in 2020, the overall average $psf of GCBs was not adversely affected – in fact, we still saw a very marginal gain +1.51% from end-2019 to end-2020. From there on, GCBs’ average $psf continued its upward momentum till the end of 2021 with an increase of +10.08%.

This phenomenon could be due to the low interest rate environment and the demand for large spaces stemming from Work From Home situations. It could also be attributed to the fact that buyers of GCBAs are ultra high networth and were largely unaffected financially by the pandemic. A case can be made that the upper class actually benefitted from the unfortunate event, which is unsurprising since they have financial liquidity to leverage on the pandemic through the stock market for example.

For the astute investors, the low interest rates offered by financial institutions was an excellent opportunity for them to buy into a valuable asset like a GCB at a significantly lower financing cost. With such a high price quantum, even a few percentage points difference in rates could mean hundreds of thousands of dollars in opportunity cost saved and for them to reinvest these monies into other asset classes.

Also, COVID-19 has accelerated the world into remote work (from home), and a GCB is able to provide the space that is highly sought after, especially in a nation that faces land scarcity.

Now that we have an idea of GCBs’ price behaviour as a whole let us now zoom into the individual districts, with categorisation into the Core Central Region (CCR) and outside of CCR (RCR & OCR).

Average $PSF (By Region)

1. CCR – Prime Districts D10, D11

As of 2021, the average $psf of GCBs in the CCR is $1,764, while its average price quantum is S$38.2million.

In the prime districts, it is apparent that D10 makes up the bulk of the transaction volumes, and that is unsurprisingly so, given that a significant portion of the GCB supply in Singapore are found within D10 and not to mention the highly coveted central location that this district has to offer.

In terms of 5-year $psf performance, D11 appears to have performed better than its D10 counterpart with a +30.02% gain versus a +11.52% gain respectively.

2. Outside CCR – Districts D20, D21, D23

As of 2021, the average $psf for GCBs outside the CCR in D20, D21 and D23 is $1,206, while the average price quantum is S$25.0million.

For those with a keen eye for detail, you might have noticed that the transaction volumes in these regions are somewhat irregular, resulting in a challenge for one to conduct a fair comparison and analysis study.

For instance, for D23, there were only a total of 2 transactions recorded – 1 in 2016, and 1 in 2021 and might not be a good representation of the 5-year price behaviour of all GCBs in D23. Similarly, in D20, there were years (2016, 2017 & 2021) where there were no transactions recorded.

With that being said, there are some observations that we can make based on the limited dataset that we hold:

• On a 5-year basis, D23 seems to be the best performer in terms of $psf (+25.24%)

• D20 and D21, unfortunately, saw marginal losses of -2.54% and -2.63% respectively

• In terms of transaction volumes, D21 has the highest number, followed by D20 and lastly, D23

Summary of Findings

Strong Demand, Limited Supply; Good Value Retention

Collectively, GCBs have returned a decent 7.13% over five years. Demand for GCBs has remained unabated over the years, and even with the COVID-19 fallout, we ironically witnessed a surge in demand amongst the affluent. One key attribute of GCBs is that their supply in Singapore is extremely limited, and there is no other real estate product that offers such an astronomical size in Singapore.

With land space being so scarce, we see a very low possibility of the number of GCBs increasing in the future. A supply cap coupled with ever-increasing demand would ensure that GCBs’ value would be retained or will appreciate in the years to come.

Since GCBs are also typically freehold in nature, it is no wonder investors hold GCBs in high regard as a sturdy investment choice during volatile times

Price Hierarchy amongst GCBs

There is a distinct difference in the average prices of GCBAs in the CCR vis-à-vis those that are outside of the core central region ($1,764 psf vs $1,206 psf).

As with the other property market segments, buyers of GCBs also appeared to be willing to fork out a premium for GCBs situated in a more central location – as evident from the higher $psf and price quantum in the CCR, and this thus gave rise to a price hierarchy of sorts amongst the different GCBAs.

GCBs in the CCR Remain a Hot Favourite

GCBs in the CCR seemed to have also been a better bet in the last five years in terms of appreciation potential. They have provided its owners with comparatively higher returns in terms of average $psf and absolute quantum (+12.90% and +S$8.3million).

GCBs in a Singaporean Climate

As GCBs are a rarity in Singapore, transactions do not occur as often and as much as other property types, say private non-landed properties, for example. Another difficulty that comes with assessing GCB transactions would be their heterogeneous nature – GCBs are a real estate product in a class of its own.

The difference in prices transacted could be due to factors that are specific only to the GCBs in question, such as the land elevation, plot shape, renovations done, and the condition of the homes.

While there are limitations in our study, we hope that this article has nonetheless provided you with some insights into the price behaviours of GCBs.

In a place like Singapore, where real estate investments have proved to be a good option for wealth preservation, as well as for retirement and legacy planning, the future for GCBs which come with scarcity value and a tag of prestige, appears to remain promising.

As a matter of fact, in a research conducted by Savills, the disparity between the GCB price index and other property segments have been widening over the years. There is no doubt about it; GCBs are in a class of their own, and will likely continue to be.

Ultra high networth clients will undoubtedly look towards purchasing the miniscule supply of GCBs that is left as a form of real estate investment. Not only does such a move afford you the luxury and prestige that comes with owning such an address. While owners enjoy the luxury of staying in such a coveted property, their property doubles as a form of wealth preservation , hedging against inflation. It is very much akin to being paid to live in luxury!

While GCBs maybe out of most budget ranges, a conventional landed property or even penthouses in the heart of Singapore can offer an unparalleled level of luxury.

If you’re on the lookout for luxury homes, or looking to sell off your luxury home, feel free to get in touch with the PropertyLimBrothers team, and we will always be happy to help. Take care, and do keep a lookout for our next article!

The post Landed Luxuries – Pricing of GCB in Different Regions appeared first on Insights by PropertyLimBrothers.

To many, Good Class Bungalows (GCB) are the crème de la crème of the Singapore property market. With an average price tag of $20 million to the highest transacted price of $230 million, it’s no wonder that these properties are reserved for affluent Singaporeans. These sprawling estates seem to be reserved for the wealthy and “Crazy Rich Asians”-esque type of lifestyle due to the exclusivity and extravagance in some of the building’s designs. We looked around and found some of the owners of these lucrative GCBs, and what their humble abodes look like. Read on to find out!

GCB Sellers

History

The exclusive factor of GCBs is that they are only considered GCBs if they meet URA building requirements and are in particular areas in Singapore. The Good Class Bungalow area was first mentioned in 1980 in the revised master plan by the then Ministry of National Development and this term is believed to be unique to Singapore. The creation of these areas was to protect the “high environment quality” of the larger bungalows from the intrusion of other intensive development. There are currently only 39 areas gazetted for GCB, with only 2,800 GCB land plots available. The scarcity and sheer size of each GCB makes it a status symbol for those in the upper echelons of society. This results in the constant demand for GCBs despite a low supply, allowing great capital appreciation for GCB owners.

Just to recap, URA stipulates that GCB developments in these areas must have:

There are also specific districts whereby Good Class Bungalows are situated in:

If you’re curious to what the interior of a GCB looks like, we went to one in District 10 previously and you can take a peek at the house tour below as well!

Who owns Good Class Bungalows?

Now let’s talk about some notable GCB owners who have made headlines for their jaw-dropping home purchases:

Owner: Mr Ong Tze Boon

Location: 1 Dalvey Estate

Price: N/A

Mr Ong is an architect and the son of the late Singapore president Mr Ong Teng Cheong. This estate was built in 1927 and has been awarded the Architectural Heritage Award in 2001. The masterpiece by prominent British architect Frank Brewer contains all of his signature architectural characteristics of flared eaves, buttressed piers and oriel windows. Despite the colonial inspired exterior, the interior has been given a facelift to suit the modern lifestyle of the present, fusing both heritage and luxurious living in one.

The late Mr Ong Teng Cheong, Tze Boon’s father, who was an architect as well, conducted A&A to restore the full glory of the bungalow in its colonial splendour by his practice Ong & Ong. This resulted in its current state, a sensitively restored bungalow that retains its character and charm. Should you pass by the estate you can even catch a glimpse of the old guardhouse outside at the home.

Owner: Mr Robert Kwan 

Location: King Albert Park House

Price: N/A

Mr Kwan actually founded Macdonald’s Singapore, and his home was built in 1994 with the help of Tay Kheng Soon, a Singaporean architect. Despite not having any public images of his house available online, his home has been praised to be well-designed for blending in nature and living – sporting a water garden, wide eaves and living spaces that allow great air circulation in his home due to it’s open concept nature.

Owner: Sir James Dyson 

Location: 50 Cluny Road

Price: $50 million

The brand Dyson is no stranger to the appliances industry, with its revolutionary hair dryers and vacuums taking the world by storm. Sir James Dyson is the brains behind this innovative brand, and we can see him take his creative reins through his current residence on Cluny Road. Sir James Dyson made waves for his purchase of a three-storey penthouse at Wallich Residences, which he sold and currently dwells in his second property purchase – his current GCB.

This bungalow looks like a treehouse from ground level, perfectly intertwined with the surrounding trees. The 15,099 sqft open concept bungalow perfectly allows natural sunlight to flood the interior with warmth. Continuing with the nature-infused residence, there are several water features punctuating the home, such as his own personal waterfall and curved infinity pool (MBS who?) Despite being a PR, Sir Dyson is allowed to purchase this GCB as he has made exceptional economic contributions to our country, and is using it for his own residence. He sold the penthouse in 2020.

Owner: Jin Xiao Qun 

Location: Nassim Road

Price: $128.8 million

Ms Jin Xiao Qun is the wife of Shi Xu, the founder and executive chairman of Nanofilm Technologies International. Her purchase set her back a whopping $128.8 million for the 32,159 sq ft plot (the size of 33 four room HDB apartments). She bought the property from previous owner businesswoman Oei Siu Hoa, also known as Sukmawati Widjaja.

The property is known as the Ladyvale Bungalow which was built in 1964, and is reported to not be in move-in condition at the time of purchase, with necessary renovation works needed should the couple want to use it for their residence. This purchase is the priciest single-home sale of 2021 and beats Sir James Dyson’s home’s price per foot record at $4,005 psf. The affluent couple became billionaires overnight following their company’s successful listing on the mainboard of the Singapore Exchange.

Owner: Tsai Family

Location: 81 Dalvey Road 

Price: $93.9 million 

This GCB was first owned by Mr Lim Kim San who was the first chairman of HDB and pioneered the public housing development that majority of Singaporeans call home today. In 2018, this 52,054 sq ft home was sold for $93.9 million to a Singaporean member of the Tsai family in Taiwan, making the cost around $1,804 psf. The head of the family, Mr Tsai Wan-Lin, was Taiwan’s richest person at the time of his passing with a wealth of $6.36 billion SGD. According to Forbes, the family’s wealth comes from the business in Cathay Financial Holdings, which was founded by Mr Tsai Wan-Lin and is currently led by his son Hong-Tu. Mr Tsai Wan-Lin’s brother, Mr Tsai Wan-Tsai, founded Fubon Financial and his two sons now helm the company.

Owner: Family of Lim Kee Ming

Location: 65 Bintong Park

Price: $48 million 

Not much is known about the property other than it was sold by a Singaporean couple who first purchased the house for $15 million. The couple later invested another $10 million into redeveloping the house into a modern facade. The property was purchased for $48 million by the family of the late Lim Kee Ming, who once served as president of the Ngee Ann Kongsi.

Owner: Kuok Hui Kwong

Location: 82 Belmont Road

Price: $43.5 million 

This cul de sac GCB was purchased by Kuok Hui Kwong, chairman of Shangri-La Asia and daughter of the Malaysian tycoon Robert Kuok. Although Ms Kuok is a PR, she was granted permission to purchase the 30,408 sq ft property. No photos of the property are available as the house seems to be hidden way behind it’s gated entrance, ensuring privacy for the family away from prying eyes.

Owner: Zhang Hanzhi

Location: Gallop Road

Price: $42 million  

Son of hotpot chain HaiDiLao’s founder Mr Zhang Hanzhi was given the option to purchase the Gallop Road GCB at $42 million, reportedly located near his father’s property. His father, Mr Zhang Yong’s current bungalow was purchased for $27 million in 2016 after he obtained his Singaporean citizenship. This 21,649 sq ft GCB is also known as The Winged House due to the architecture of the house looking akin to two wings. The $1,940 psf transaction is noted to be a record price psf for the Gallop Road area as well.

Owner: Ian Ang

Location: 27 Olive Road

Price: $36 million

Gaming chair tycoon Ian Ang, founder of Secret Lab, went on a property spree and purchased a GCB in the Caldecott Hill Estate and a penthouse in Leedon Residences in a week this month. But make no mistake, the 28-year old actually scoured the property market for two years before firming his decision to purchase the homes according to his broker. The freehold plot avails Mr Ang 23,424 sq ft of space accompanied with a sloping terrain, allowing him a unblocked view of the city and Marina Bay Sands in the distance. His $51 million purchase for both homes may be a huge sum to many, but with a company valued at $2 billion, we reckon that Mr Ang deserves to treat himself.

The top 5% of the country are truly in another league of their own. For the generic working class Singaporean adult, we wouldn’t dare to dream of even owning such a magnificent home. For some of these homeowners, they may own other properties in Singapore and abroad, due to the diversity of their investment portfolio and real estate being a prime source of investment as well.

But with that said, a home is what you make of it and people who are in it; just that the  walls of these homes could claim many other stories to tell.

The post Landed Luxuries – Who lives in Good Class Bungalows in Singapore appeared first on Insights by PropertyLimBrothers.