Good class bungalow prices to soften until 1H17

As of December this year, average prices fell to $1,323 psf.

Despite growing volume and increasing value of transactions in Good Class Bungalow areas, analysts see prices to still dip further at least until the first half of next year.

Quoting data from CBRE, DBS Vickers Securities said there have been 35 deals in GCB areas year-to-date, totalling $755m. This is in contrast from 33 deals totalling $715m and 28 deals totalling $626m in 2014.

However, average prices fell this year to $1,323 psf, compared to $1,352 psf and $1,428 psf in 2015 and 2014, respectively.

"Market views are mixed on whether transaction volumes will rise again or fall next year although there is a consensus that prices will keep on dipping at least in the first half. Agents cited a weakening economy and the rising interest rate scenario among other factors," DBS said.