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OSIM founder Ron Sim is reportedly selling his good class bungalow (GCB) at Bin Tong Park for S$117 million, which translates to a psf price of around S$2,500. This would set a new record psf price, media reports stated.
The property has an area of about 22,000 sq ft and is located on a hillside slope. The site comprises two plots of freehold land that totals 46,842 sq ft. It features a 25m swimming pool, spa, home theatre, tennis court, private lift, wine cellar and a basement garage for 15 cars.
The house will likely hit a new record based on psf price for a property in the GCB area if successfully sold, said reports which added that Jones Lang LaSalle is the marketing agent.
Currently, the record price for a GCB belongs to a S$2,110 psf-priced property sold by bungalow investor George Lim last October. The Leedon Park site was completed in 2011 for S$33 million and features six-bedrooms and a pool.
The latest sale exercise follows a trend of deals done by prominent local businessmen, including Simon Cheong’s (SC Global) S$42.5 million Cornwall Gardens home.
Moreover, a Nassim Road bungalow owned by Wing Tai Chairman Cheng Wai Keung and his wife Helen, was launched for sale in April. The price expectation on that sale is between S$250 million to S$300 million, or around S$2,947 – S$3,536 psf.
The reported tapering in the US monetary stimulus is unlikely to significantly impact property prices in Singapore, analysts have said.
“It usually comes down because of distressed selling. But economic growth is stronger than expected. People are keeping their jobs...Even if it comes down, there won't be a crash,” noted Tata Goeyardi, Property Analyst at Religare Capital Markets.
The US Federal Reserve’s monetary stimulus has created cheap liquidity and helped boost Asian real estate, but as it comes to an end, many markets in Asia will likely feel the pains as well, media reports said.
In Singapore, the effects of such a move in the market is now underway and could last three to six months, said Tim Gibson, Head of Asian Property Equities at Henderson Global.
“Anything that is yield-like has been sold off” as a knee-jerk reaction to the unwinding of the asset purchase programme, but “we are in a cyclical macro recovery…It should be positive for real estate in terms of top line rental growth”, he added.
Meanwhile, David Neubronner, National Director for Residential Property at Jones Lang LaSalle Property in Singapore, said: “There's still strong demand for homes, especially in the suburbs and there's still liquidity in the market.”
But several concerns may arise going forward. “In the short term, it (housing market) should hold up, but medium to long term, there will be pressure because of the new supply coming up,” said Neubronner.
