With economic prospects looking positive, we expect GCBs to remain sought after in 2018. However, pricing and the available stock for sale will remain key considerations. 

As supply in the foreseeable future is unlikely to change significantly from some 2,800 plots within the 39 safeguarded GCBAs currently, this would further enhance the wealth preservation quality of these prized freehold assets.

Notwithstanding the restricted demand pool, prospective sellers are expected to raise or be firmer on their price expectations in 2018. This is in view that genuine buyers are likely to be more willing to commit earlier rather than later, taking into consideration that GCB prices have started to firm, with anecdotal evidence based on caveat records indicating a marginal 0.8% rise in GCB prices in 2017.

However, GCB prices are not expected to run away in 2018. The Additional Buyers' Stamp Duty (ABSD) and Total Debt Servicing Ratio (TDSR) requirements, coupled with the rise in the top marginal Buyers' Stamp Duty (BSD) rate applicable to the portion of residential property value in excess of SGD 1 million from 3% to 4% since 20 February 2018, will temper prices that buyers are prepared to offer.

In light of the above and barring unforeseen external shocks, we expect overall GCB prices to rise by 5-8% in 2018. Transaction volumes could also surpass 2017’s level moderately.

Click here to download the JLL Good Class Bungalows (GCBs) Research Report

For more information about Good Class Bungalows (GCBs)​ in Singapore or to discuss the report contact Tay Huey Ying Head of Research & Consultancy JLL Singapore via the contact details below. 

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