Property prices really have gone up across all segments, even the extreme luxury end. Good class bungalows (GCBs) have been all the rage in 2021: from $144 million worth in transactions in 48 hours (in July), to news of tech billionaires developing a penchant for these. There’s also a good likelihood that, with Covid-19 continuing to wreak havoc, the GCB trend will be ongoing for quite a while longer. Here’s what’s happening:
GCB transaction volumes are close to the last highs of 2010
The last peak for GCBs was in 2010, when transactions totalled $1.85 billion, with around 101 transactions. By comparison, the first half of 2021 alone saw about $2.05 billion in transactions, with 68 transactions.
The contrast is even sharper, between 2020 and 2021. Last year, total GCB transactions only reached around $415.8 million, with 21 transactions. On a year-on-year basis (January to August), GCB prices averaged $1,391 psf in 2021, but have since jumped to about $1,713 psf.