SINGAPORE (EDGEPROP) - A Good Class Bungalow (GCB) sitting on a 34,216 sq ft, freehold site along Chancery Lane changed hands earlier this month for $66.06 million ($1,931 psf).

See also: Coronation Road West GCB for sale by private treaty, price above $50 million

According to a property title search, the GCB in prime District 11 was owned by brothers Mirza Mohamed Mehdi Namazie and Mirza Iskandar Namazie, who are grandsons of M.A. Namazie, a wealthy Persian merchant who had come to Singapore in 1909, and owned property in Singapore, Madras and at least 6,000 acres of rubber and oil palm estates in Johor. M.A. Namazie had also built Capitol Theatres in the 1920s, and was chairman of the board of directors.

The GCB at Chancery Lane was purchased by Kelsey Cheng Tan, wife of Kester Tan, the youngest son of Filipino tycoon, Andrew Tan, according to the property title.

---

---

The elder Tan, a self-made billionaire, is ranked eighth richest in the Philippines by Forbes, with a net worth estimated at US$2.8 billion ($3.8 billion). He is chairman of Alliance Global Group, a conglomerate with stakes in property development under its real estate arm, Megaworld; as well as hospitality and gaming assets such as Resorts World Manila. Alliance Global also owns Emperador, one of the world’s largest brandy distillers; and is the main franchise holder of McDonald’s in the Philippines via Golden Arches Development Corp.

Kester and Kelsey Cheng Tan’s wedding that had taken place in 2015 saw then president of the Philippines, Benigno Aquino III, as a guest of honour, according to social media posts. Cheng Tan is believed to be a Singapore citizen now, hence the purchase of the GCB, with a caveat lodged on March 3, being her first property in Singapore, will not be subject to additional buyer’s stamp duty (ABSD). (Check all latest Singapore property Market Trends)

Even though the plot is large enough to be subdivided into two smaller GCBs, the buyer is expected to retain it as a single property. The existing house, a single-storey pre-war bungalow, is believed to have been built 75 years ago.

However, the new owner is expected to redevelop the property into a bigger, contemporary house. “Such a plum and elevated plot is rare,” comments Bruce Lye, managing partner of SRI who is said to have represented the buyer in the GCB deal at Chancery Lane. Lye declined to comment on the buyer.

“The purchase price of $1,931 psf is considered a fair price,” he says, pointing to another sale of a GCB at Garlick Avenue that was transacted at $1,974 psf. According to a caveat lodged in February, the GCB at Garlick Avenue sits on a freehold site of 15,137 sq ft, and changed hands for $29.88 million. Lye had brokered that deal too. The GCB at Garlick Avenue is located off Old Holland Road and Bukit Timah Road in prime District 10.

In terms of absolute price, the GCB deal at Chancery Lane is believed to be the biggest deal so far this year. By Lye’s reckoning, he has brokered about $130 million worth of bungalow deals since the property cooling measures of Dec 16, 2021.

When it comes to GCBs in the $50 million to $70 million range or higher, the buyers are invariably the ultra-high net worth individuals. “They see GCBs as the safest bet against inflation,” observes Lye. “And they can tear it down if they wish, redevelop it to suit their needs and enjoy the space.”

There have been a number of sizable bungalow deals in the prime District 11 neighbourhood since last year. Last May, a GCB sitting on a freehold site of 23,403 sq ft at Chancery Lane was sold for $43.5 million ($1,859 psf). This was followed by another GCB with land area of 30,659 sq ft at Mount Rosie, which fetched $43.8 million ($1,429 psf). It was purchased by a group of investors led by Daniel Teo, chairman and managing director of Hong How Group of Companies, as well as a director of Tong Eng Group. Investors include those purchasing under the fractional ownership platform Fraxtor, co-founded by Rachel Teo (Teo’s daughter) and Oliver Siah, who is the CEO of the firm.

n December, Peak Vista, an entity of Kheng Leong Co, paid $70 million ($1,611 psf) for two adjoining detached houses with a combined site area of 43,458 sq ft at Gilstead Road, off Newton Road and Dunearn Road, in District 11. The site is zoned for residential use under the 2019 Master Plan, with a plot ratio of 1.4. According to Edmund Tie, the marketing agent, it could be redeveloped into a new condominium project with up to 56 units.

With demand for GCBs among the ultra-rich still insatiable, Lye reckons it is just a matter of time before the next record price is set.

Check out the latest listings near Chancery Lane, Mount Rosie, Garlick Avenue

---