GCB market may be entering consolidation phase after stellar run-up

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Recent deals include a S$65m sale of a house in Chatsworth Road and an old house in Cluny Hill that is changing hands at S$48m

AFTER a strong performance so far this year, the Good Class Bungalow (GCB) market may be entering a consolidation phase as the buyer-seller price gap starts to widen, say observers.

Bruce Lye, co-founder of property agency SRI, said: “The buying euphoria in the GCB market seems to have cooled a little. However, owners’ asking prices remain firm. The trend we are seeing is that buyers who are in the market are weighing their options and picking up properties that offer them the most value – but even these are still at new benchmark prices for the locale.”

Steve Tay, List Sotheby’s International Reality (List SIR) senior associate vice-president, said: “Viewing activity is still ongoing, but it’s not as heated as during the April to August period. The key reason is sellers have raised their prices; as well, much of the supply has been taken off the market after the earlier strong sales momentum. Owners of the remaining bungalows in GCB Areas (GCBAs) that are still available for sale have raised their price expectations. New listings are fewer than before – and even then at higher prices.

“The market is entering a consolidation phase, with buyers contemplating whether to match sellers’ prices.”

Tay added that tighter restrictions to contain the surge in Covid cases also limit viewing activity.

source: The Business Times

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