Several big bungalow deals done of late

Several big-ticket bungalow deals have been transacted recently - both in the Good Class Bungalow (GCB) market on mainland Singapore and at Sentosa Cove.

An old two-storey freehold bungalow at White House Park changed hands recently at $24.8 million, which translates to nearly $1,650 per square foot (psf) on freehold land area of about 15,036 sq ft.

At Jervois Hill, two vacant plots have been transacted in the past few months.

The more recent deal, at $21 million, is for a plot of 15,095 sq ft. Word in the market is that the unit land price of $1,391 psf is low for the area because there is an electrical substation on the site.

The sellers bought the property for $19 million in 2010 from Vincent Tan Kim Yong, group chairman and chief executive officer of Advanced Integrated Manufacturing Corp, which is listed on Singapore Exchange.
In February this year, Dr Tan was also granted an option for the sale of one of his other plots on the street for $32 million or $2,118 psf.

If that transaction is completed, it will set a new record for a Good Class Bungalow Area, surpassing the $2,081 psf achieved in July last year for 6 Chatsworth Road, diagonally opposite the Indonesian Embassy.
Over in the upscale waterfront housing locale of Sentosa Cove, an ocean-fronting bungalow along Cove Drive changed hands last month for nearly $22.2 million, which works out to around $2,787 psf on land of 7,963 sq ft.

It is understood that a few bungalow deals are brewing on Treasure Crest Island, and at higher prices than the $1,766 psf fetched for a transaction about two months ago.

That deal, which involved a bungalow sitting on land of 8,496 sq ft, sold for $15 million.

As for Sentosa Cove, while there have been a lot of viewings including by Chinese investors, there have not been many transactions.

The 10 per cent ABSD payable by foreigners who are not Singapore permanent residents (PRs) on any residential property purchase in Singapore is probably the main deterrent.

Source: Business Times – 23 June 2012