Lim Kay Tong, siblings sell bungalow for S$43m

Singapore

AFTER chalking up a 35 per cent increase in transaction value to S$1.05 billion last year, Singapore's Good Class Bungalow (GCB) market is off to a good start in 2021.

Caveats for at least seven transactions have been lodged so far this month totalling S$218 million in places such as Chatsworth Avenue, Jervois Road, Swettenham Close, Bin Tong Park and King Albert Park.

In addition, several other deals in GCB Areas are close to being stitched.

For the whole of last year, there were 45 transactions, up from 40 deals in 2019, based on List Sotheby's International Realty's analysis of URA Realis data.

Realstar Premier founder William Wong said: "We have not witnessed such a high level of viewing appointments in nearly a decade."

"We are facing a situation of not only new citizens who are buying GCBs, but also local citizens who are upgrading from a smaller landed property."

"The FOMO (fear of missing out) syndrome seems to be in play among many successful businessmen and corporate honchos here such that some fear they may miss the boat if they do not secure a GCB now - before prices spiral out of control."

Newsman Realty managing director KH Tan says activity in the GCB market is being fuelled by the low interest rate environment, ultra-high- net-worth parents buying a GCB for the next generation as well as strong appetite from businessmen and entrepreneurs flush with cash from selling their business or a partial stake in their business.

Bungalows in the 39 gazetted GCB Areas are the most prestigious form of landed housing in Singapore, with strict planning conditions stipulated by the Urban Redevelopment Authority (URA) to preserve their exclusivity and low-rise character.

While anyone can buy a non-landed private home in Singapore, one generally has to be a Singapore citizen to be allowed to acquire a landed property in a GCB Area.

Among the deals so far this year is a villa in King Albert Park on a site with dual road frontage. It is being sold for S$43.35 million or S$1,222 per square foot based on the freehold land area of 35,482 sq ft. The property is being sold by three siblings: actors Lim Kay Tong and Lim Kay Siu and their sister, Irene. The buyer is understood to be the Kuik family that controls Sim Lian Group.

The total land area is big enough to be carved into two plots, based on the minimum plot size of 1,400 square metres (or about 15,070 sq ft) stipulated as a planning norm for newly-created bungalows in GCB Areas.

Savills Capital Markets confirmed that it handled the transaction but declined to comment.

Along Swettenham Close, a fairly new bungalow is being sold for S$48 million or S$2,893 psf on land area of nearly 16,600 sq ft.

It is being bought by Ben Chng, who late last year sold a majority stake in Singapore-based instant cereal and beverage maker Viz Branz Holdings to Asia Food Growth Fund, jointly managed and co-invested by Investcorp, China Resources Capital Management and a unit of Fung Investments, according to media reports. Mr Chng retains a significant stake in Viz Branz and continues to sit on its board.

Newsman Realty is understood to be brokering the sale of the Swettenham Close bungalow, as well as another property, in Bin Tong Park, which is in the early stage of being sold.

Singaporean Brian Chen Jianwen is understood to have been granted an option for its purchase, for S$37 million, which reflects S$1,685.50 psf on the land area of 21,952 sq ft.

Mr Chen began his career in investment banking with Merrill Lynch in Hong Kong, before moving to Jakarta, where he spent a few years at Mayapada Group. He is now the chief financial officer of another Indonesian conglomerate, KPN Corporation. The 37-year-old is currently based here.

Mr Chen has also been involved in businesses in Hong Kong, investing in a few top nightclubs and bars in the Lan Kwai Fong district - such as Prive, Bungalow, Levels and Common Room - which he sold for a tidy profit in October 2017.

He acquired a knack for investing since his university days at NUS Business School and is currently invested heavily in hedge funds, equity funds and venture capital funds as well as start-ups. He is also son-in-law of Indonesian magnate Martua Sitorus.

Meanwhile, in Chatsworth Avenue, a bungalow is changing hands at S$27.38 million, reflecting S$2,938 psf, albeit on a relatively small land area of about 9,320 sq ft. The buyer is understood to be Credit Bureau Asia founder and executive chairman Kevin Koo Chiang; the group was listed on the mainboard of the Singapore Exchange in December.

The sale is understood to have been brokered by Realstar, which is also handling a S$30.3 million transaction in Jervois Road. The price works out to S$1,567 psf on land area of about 19,333 sq ft. On site is an old house ripe for redevelopment. The buyer is believed to be Kuah Ann Thia, founder of Kakiko Group. Late last year, he sold a house in Lermit Road.

Realstar is also understood to be brokering a S$19.8 million (S$1,225 psf) transaction in Yarwood Avenue. The buyer has yet to exercise the option but has nonetheless lodged a caveat.

Mr Wong predicts "very strong demand" in the GCB market this year. "I'm certain that the number of transactions in 2021 will be at least 20 per cent more than last year, with prices easily appreciating 5 to 7 per cent by end of the year."

Newsman's Mr Tan said that foreigners who became citizens last year as well as ultra-high-net-worth Singaporeans consider the city-state to be one of the safest places in the world.

• Video: What is a Good Class Bungalow? Go to bt.sg/gcb