DEVELOPMENT POTENTIAL OF GOOD CLASS BUNGALOW AREAS

Abstract

Thirty-nine "Good Class Bungalow Areas " (GCBAs) were designated in 1980 to protect these landed housing estates that consist of bungalows with a minimum plot size of 1400 square metres. Found mainly in the prime residential districts of 10 and 1 I, these good class bungalows are highly exclusive and they cater to the top income earners in Singapore. With the supply of good class bungalows remaining at about 760 hectares, property developers and investors would be interested to know the development potential of the good class bungalow housing market Hence, this study attempted to gauge the maximum supply of good class bungalows, compare the values of good class bungalows located in Tanglin, Bukit Timah and Novena and determine the outlook of the good class bungalow housing market. An upward rising trend is observed for all good class bungalow prices from the year 1991 to 1995. In addition, good class bungalows in Tanglin command the highest price while those in Novena are the lowest. Bukit Timah also registered the highest average year-ori-year increase in prices over the five year period Positive demand factors and a more intensive use of land in the GCBAs augurs well for the good class bungalow housing market In the long run, prices for good class bungalows will be sustained by demand from wealthy individuals who require them for owner occupation or investment This demand is further supported by the rental market for top expatriates such as foreign ambassadors and chief executives of large multi-corporations for whom large houses comparable to their hometowns are the norm.