Sales of Good Class Bungalows(GCB) and luxury property declined in the fourth quarter of 2022, coinciding with a year in which the US Federal Reserve aggressively tightened monetary policy to combat inflation.
In Q4 2022, just six bungalows were sold in the Good Class Bungalows zones for a total of $217.5 million, representing a 53.1% decline from the previous quarter and a 45.9% decline over the year.
Decline in luxury property purchase
While some non-landed luxury property purchasers were delaying their purchases due to worries that the US economy would enter a recession, the sellers were noted demanding higher prices, which may be why Good Class Bungalows sales declined in Q4 of 2022.
The largest transaction for 2022 was the sale of a Good Class Bungalow at Chancery Lane that was reportedly acquired for $66.1m.
According to Huttons, this represents the highest price ever paid for a Good Class Bungalow in the Bukit Tunggal GCB area, both in quantity and per square foot of land.
It is believed that the market will profit from China relaxing its border restrictions this year, notwithstanding the drop in luxury property transactions throughout Q4.
Anticipations of 2023 about luxury property transactions
In 2023 it is anticipated that the Good Class Bungalows market (luxury property) will continue to see between 40 and 50 transactions on average, with some demand likely moving to areas like District 15’s Wilkinson, Branksome, and the Goodman roads area, where there are huge land plots available.
The agency Huttons believes that while some buyers might be holding off on purchasing a Good Class Bungalow once they become citizens, sellers are holding out for their ideal price.
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