Chart of the Day: Bungalow prices unscathed by stringent property cooling measures

Average prices rose in H1.

Several rounds of cooling measures did not manage to dampen prices of Good Class Bungalows (GCBs) in Singapore.

This chart from CBRE shows that although GCB investment value had moderated considerably since 2012, prices have nonetheless continued to trend higher since 2013.

In the first six months of 2015, 15 bungalows were sold at an average price of $1,442 psf. This is higher than the $1,381 in the second half of 2014, but lower than $1,488 in the first half of 2014.

Among the transactions in H1, seven units were smaller units with land areas less than 15,070 sf, with prices ranging from $7m-$10m.

GCB investment value surged 33.9% to $377.6m compared to the $282.06m registered in 2H14, mainly due to the sale of a large 73,281 sf GCB at Ridout Road for $91.69m.

"Clearly, GCB prices have remained resilient even though sales volume had taken a beating for the past two years. While the cooling measures did not manage to bring a significant price correction, they have prevented investors from over-leveraging themselves in mortgages. This has resulted in a stronger and healthier property market. GCB buyers are generally owner-occupiers or long-term investors with stronger financial muscle," said the report.