GOOD-CLASS bungalows (GCBs), the residences of choice for the top end of Singapore society, have had a booming year to date.

And the bullish sentiment is expected to continue into the next 12 months even though most of them are still off-limits to foreign buyers, property experts say.

Figures show that in the first nine months of the year, 107 of these top-end homes were sold for close to $1.4 billion in total - already more than last year's total of $1.34 billion.

And based on caveats lodged, the average price per sq ft (psf) has been rising - up an estimated 30 per cent last year, and a further 25 per cent in the first half of this year. 

With prices registering double-digit growth, the enormity of these houses and their respective price tags has not deterred savvy speculators from making a quick buck on them.

Some GCBs have been "flipped" or sold and re-sold within 12 to 18 months.

GCBs are gazetted by the Urban Redevelopment Authority to have a minimum land area of 1,400 sq m or 15,070 sq ft.

Their built-up area is limited to 35 per cent of the total land area and they cannot be more than two storeys high.

There are only 2,500 GCBs in Singapore and they are found mainly in prime residential districts such as Cluny Road, Nassim Road and Bishopsgate, as well as areas like Windsor Park and Eng Neo Avenue.

The sale of a GCB in Nassim Road in September for approximately $25.5 million set a new benchmark of almost $1,900 psf.

Mr Steven Ming, director of Prestige Homes at Savills Singapore, said that recent record-breaking prices for GCBs in Nassim Road were a sign that the market was catching up with other sectors.

"The run-up in prices is expected, given that GCB prices have been languishing too far behind those of luxury apartments and prices for the leasehold Sentosa Cove.

"At current prices, GCBs still offer good value, given the very finite number and exclusivity of such developments in Singapore."

Sentosa - highly coveted

TRADITIONALLY, GCBs were the creme de  la creme of luxury housing - at least as far as prices go - until Sentosa Cove came along.

Typical GCBs go for around the $600 to $1,200 psf price range. But bungalow plots in the upscale waterfront housing district have fetched land prices above $1,400 psf despite having only a 99-year leasehold tenure compared with typical freehold GCBs on the mainland.

But that is because Sentosa is special. Unlike on the mainland, where there are restrictions on foreigners owning landed property, foreigners can buy landed residential properties in Sentosa Cove, which has been billed as a unique world-class integrated waterfront development.

It is also one of the rare places in Singapore where foreign buyers can even obtain fast-track approval to do this in two days, instead of the usual eight weeks.

Not surprisingly, this has seen the area become a hot favourite for wealthy buyers, both from Singapore and overseas.

Back on the mainland, Mr Ming reckons that the foreign ownership restrictions for landed properties are the only hindrance limiting the full growth potential of the GCB sector compared to Sentosa Cove and the rest of the luxury residential sector.

Still, he was confident that the GCB sector would continue to perform strongly next year. "In 2008, we anticipate a further 10 to 15 per cent price appreciation on the back of a strong economy and rapid wealth creation, especially amongst the top echelons of society," he said.

Knight Frank's director of research and consultancy Nicholas Mak felt that the recent property boom would have encouraged buyers who had invested in GCBs earlier to sell. "However, the fact that foreigners and permanent residents are not eligible for GCBs could act as a dampener on the market," he added.

He explained that local buyers typically have a threshold of around $15 million whereas foreigners tend not to be limited at that level.

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