For most of us, owning a private property (usually a condo) is a status symbol. For rich people, it’s owning a good class bungalow (GCB). Within just two months, we’ve had tech CEOs from Razer, Grab, Secretlab and TikTok grab the headlines for the same thing: buying a GCB.
All this news got us wondering: how is the house-hunting process like for GCB buyers? What kind of unique requirements do they look for? So we ask two agents to share with us.
What is a good class bungalow (GCB) and what makes it so special?
Good class bungalows are the most atas and prestigious type of landed housing in Singapore. What makes them highly sought after is their location and size criteria.
For instance, they’re only found in 39 gazetted GCB areas, such as Nassim Road and Bin Tong Park. And to be considered a GCB, the property must also have at least 1,400 sqm (around 15,070 sq ft) of plot size, which translates to a combined 2,800 GCB land plots in Singapore.
On top of that, the maximum height must be two storeys, excluding the attic and basement, to preserve the exclusivity and low-rise character of the neighbourhoods.
In a land-scarce Singapore, these criteria make them even more rare and prestigious.
And as they’re mostly freehold, they can be passed down to the next generation as well, ideal for wealth preservation.
6
7
4
4
6
6
6
7
6
4
5
5
5
5
6
5
2
2
5
5
Who has been buying the good class bungalows?
Good class bungalow buyers have generally been business owners and ultra-high-net-worth individuals. Some have just gotten their Singapore citizenship. Since 2012, only Singaporeans can purchase these GCB properties. Foreigners will need to get approval from the government to buy a GCB, like what we’ve seen with James Dyson’s Cluny Road purchase back in 2019.
For Henry Lim, Head of GCB and Landed Division at ERA, the Chinese from China and Indonesia make up the highest proportion of the new citizen and PR buyers he’s encountered. Other types of clients include doctors, families and those setting up family offices.
“Many buyers prefer areas near Nassim, Botanic Gardens, and Tanglin,” he says.
For Andy Cheng, Associate Group District Director at PropNex, most of his buyers are local-born Singaporeans. However, once in a while, there are PR or Chinese buyers that have just gotten their Singapore citizenship. They’re usually upgraders from semi-detached or detached houses.
In recent years, he’s also seen a slight change in the buyer profile. “Especially in these two years, I noticed GCBs are moving extremely fast and they are mainly sold to local citizens.”
Furthermore, he’s come across younger buyers as young as early 40s in the past year. Noting 28-year-old Ian Ang, the Secretlab co-founder who recently bought a GCB at S$36 million, he says, “Despite the pandemic, I believe there are many new windows opened up for some businesses. Moving forward, I believe we will see more younger generation buyers moving into this prestigious property category.”
What’s the good class bungalow house-hunting process like?
Tapping into the right network
Andy remarks that knowing who has the potential listings to share will help shorten the time to find the right house.
“Some GCBs are not listed in public channels as they are not allowed to be advertised for the owners’ privacy. So when agents are able to work hand in hand together, we’re able to make more successful deals together for our clients.
“As for some direct closings, word of mouth can be very helpful too. With the right client network, we can check around as well.”
Looking into specific requirements
In general, Henry says that buyers look at the location, characteristics of the house and land, and its price in relation to their criteria.
Andy adds that GCB buyers typically have very specific requirements on what they want. Those who prioritise privacy prefer a GCB with a hilltop view near a cul de sac.
Some prefer a grand wide frontage and a regular land shape. On top of these requirements, some only look at specific lanes in a location with a particular orientation. So the house-hunting process for these buyers will take a little longer given the limited supply.
Buying a GCB without house viewing?
Throughout his experience so far, Henry has had a unique encounter in almost every GCB market cycle.
“Buyers invest on an opportunity to own a GCB of their unique requirement within their budget.”
This includes transactions without a house viewing. Henry shares that in one instance, the GCB had a 270- to 360-degree eagle-eye unblocked view. In another transaction, it was due to the rarity to own a GCB in the location.
From weeks to years: How long the GCB buying process can take
As with buying any residential property, having a huge budget can shorten the process. “If the buyer has a good budget, it will be very fast, for example, two to three weeks,” Henry adds. Otherwise, it may take at least six months.
Due to the limited supply, the whole buying process, from house-hunting to sealing the deal, can take longer than the typical process.
According to Andy, finding the right house can take up to one to two years.
Moreover, it depends on the location and potential of the property. Andy shares that based on what the buyers have in mind, agents help come up with different ideas and options to help buyers visualise their ideal living concept.
“There might be some negative sides, but we can get advice from IDs (interior designers) or architects to help in making a house a perfect home for the buyers. I always believe there are no 100% houses in the world, but I think about how we can make them perfect for our desired lifestyle if the property has 80% potential in creating that.”
*Quotes have been edited for clarity.
Any GCB stories you’d like to share? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, 99.co recommends TikTok CEO buys S$86m GCB – it’s official, tech and gaming-related entrepreneurs are buying Good Class Bungalows and How has the pandemic affected landed home buyers’ property-buying decision?
Looking for a property? Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
Frequently asked questions
What is a good class bungalow (GCB)?
Good class bungalows are the most prestigious type of landed housing in Singapore. To be considered a GCB, the property must have at least 1,400 sqm (around 15,070 sq ft) of plot size and be located in one of the 39 gazetted GCB areas.
Can a foreigner buy a good class bungalow?
Foreigners will need to get approval from the government to buy a GCB, so most buyers tend to be Singaporeans. But we’ve also seen exceptional cases, such as James Dyson’s Cluny Road purchase back in 2019.
Are all good class bungalows freehold?
While most of them are freehold, there are some that are leasehold (99-year or 999-year).
The post Good Class Bungalow (GCB) house-hunting: Confessions from agents appeared first on 99.co.
