SINGAPORE - A good class bungalow (GCB) at 7 Chestnut Crescent will be put for sale via auction by its owner next month with an asking price of $9 million, real estate firm Colliers International said on Monday morning (Aug 26).
The freehold property is located within the GCB area in Bukit Panjang. There are 39 clusters in Singapore gazetted for GCBs.
The asking price works out to around $975 per square foot (psf), based on the total land area of 9,232 square feet or 857.7 square metres.
In comparison, a landed home at 29 Chestnut Crescent was sold for $8.8 million or $1,103 psf during Q3 2018, Colliers said.
"GCBs are seen as the crème de la crème of the Singapore property market and this presents a rare chance to own one of them at a relatively affordable price," said Steven Tan, director of capital markets and investment services at Colliers.
The current single-storey home can be potentially redeveloped to a luxury property with two-and-a-half storeys, he noted.
Subject to the relevant approvals, the buyer may also acquire an adjacent state land that spans 2,836 sq ft, which could help to lower the overall effective land rate below $975 psf, Mr Tan added.
The GCB property is a short drive from the Dairy Farm Quarry and Bukit Timah Nature Reserve. Other amenities in the vicinity include Hillion mall, Petir Park, and schools including Bukit Panjang Primary School, Assumption English School, CHIJ Our Lady Queen of Peace, and Fajar Secondary School.
The property is also located near the Cashew and Bukit Panjang MRT stations.
The GCB auction will be held on Sep 30, the same day Colliers will also launch a conserved shophouse for auction. Both properties will be offered for sale at 2.30pm at Amara Singapore, Level 3, Connection Room.
The owner of the two-storey shophouse on 65 Neil Road is asking for at least $8 million, or around $2,800 psf based on the gross floor area of 2,834 sq ft.
The shophouse comes with an attic and has a land area of 1,413 sq ft, Collier's said. It also has 99-year leasehold tenure with effect from July 4, 1989.
Colliers understands that the shophouse's owner has engaged an architect to review potential additions and alterations work which could add around 602.5 sq ft to the gross floor area. This brings the overall pricing down to below $2,500 psf.
Additional buyer's stamp duty and seller's stamp duty (SSD) are not applicable due to the shophouse's commercial use zoning.
Currently, the ground floor of the shophouse is leased to an entertainment establishment which has been occupying the space for the past 15 years.
The lease for the second floor to another tenant will be expiring at end-2019. Subject to approval from the Urban Redevelopment Authority, the floor may be used for restaurant, clinic, commercial school, gym/fitness centre, night club, karaoke, student hostel, and residential use, potentially co-living concepts.
Colliers' Mr Tan said a heightened interest in shophouses has been seen since new cooling measures were introduced in July 2018.
"Those in prime areas are considered a good investment option owing to their superior location, healthy pedestrian traffic, and the vibrant activities in the vicinity. Generally, shophouses also see good leasing demand and enjoy relatively good return," he added.