Understanding Good Class Bungalows

Good Class Bungalows (GCBs) are Singapore’s most prestigious landed homes.  They are large detached houses with strict criteria such as minimum plot sizes of about 1,400 sq m, maximum site coverage of 40%, and limits on the height and footprint of the buildings .  Because of these conditions, GCBs are rare—there are roughly 2,800 gazetted plots located across 39 exclusive areas in districts 10, 11, 20, 21 and 23 .  These expansive estates are considered the “crown jewels” of Singapore’s luxury property market and are prized by ultra‑high‑net‑worth individuals for both investment and wealth preservation .

Why Consider Bridging Loans for Good Class Bungalows?

A bridging loan is a short‑term financing solution designed to bridge the gap between a property purchase and long‑term financing .  Buyers often use it to secure a new property before their existing asset is sold, or to undertake renovations or value‑add projects .  Since GCBs rarely come onto the market, prospective buyers may need to act quickly to secure one—especially in competitive areas like Bukit Timah, Holland and Orchard .  A bridging loan enables clients to tap into liquidity quickly, using the GCB as collateral, while they arrange for longer‑term financing or free up funds from other investments.

Recent examples underscore the importance of flexible bridge finance.  Private lenders have structured multi‑million‑dollar loans with loan‑to‑value ratios around 70% and interest‑only periods to support high‑value GCB acquisitions .  This approach helps investors seize rare opportunities without waiting for sale proceeds or lengthy bank approvals.

Related: Read about when Rikvin Capital helped a client, providing cash within 24 hours.

GCB Bridging Loan Highlights

• 24‑Hour In‑Principal Approval: Quick credit assessments enable borrowers to secure approval within a day, providing certainty during tight negotiation windows .

• Disbursement Within One Week: After approval, funds are usually released within about a week, allowing clients to meet purchase deadlines or renovation milestones.

• Loan Terms of 3–36 Months: Short‑term structures allow borrowers to repay when long‑term financing materializes; terms are tailored from three months up to three years.

• Loan Amounts from SGD 1 Million to 100 Million: Facilities can scale with the size of the transaction, meeting the capital requirements of both smaller GCBs and multi‑property portfolios.

• Up to 70–80% Loan‑to‑Value (LTV): Bridge lenders typically offer up to 70% of the collateral’s value , and in select cases this may stretch to around 80% for strong borrowers and prime properties.

• Dedicated to Good Class Bungalows: Lenders understand the unique characteristics of GCBs—location restrictions, land size requirements and heritage value—and tailor the collateral assessment accordingly.

• Competitive Rates and Flexible Payment Terms: Bridge loans may have higher interest than long‑term mortgages, but they are fast to arrange and have flexible lending criteria .  Many facilities allow interest‑only payments during the term, reducing cash‑flow pressure .

Benefits of Bridging Loans for GCB Purchases

1. Rapid Access to Capital: Traditional bank financing can take months, whereas bridging loans can be arranged within days .  This speed is critical when rare GCBs enter the market.

2. Flexibility in Underwriting: Bridging lenders often focus on the property’s value and exit strategy rather than the borrower’s income or credit score , making it easier for asset‑rich investors to qualify.

3. Preservation of Investment Opportunities: Because GCBs are limited in number, the ability to act quickly prevents buyers from losing out to competing bids.

4. Customised Structures: Loans can be interest‑only, first‑charge or second‑charge, depending on the borrower’s needs .  Some facilities accept multiple properties as collateral or allow phased disbursements to fund renovations.

5. Bridge to Longer‑Term Financing: Investors can stabilise the property or complete value‑add works before refinancing with conventional banks or exiting the asset.

Eligibility and Considerations

• Borrower Profile: GCB ownership is generally restricted to Singapore citizens; foreigners and permanent residents must obtain special approval .  Bridge loan borrowers should also qualify as accredited investors.

• Collateral Requirements: The GCB itself (and occasionally other assets) must serve as collateral; lenders will assess valuation, marketability, and potential exit routes.

• Exit Strategy: Because bridging loans are short‑term, a clear exit plan—such as refinancing with a main‑street bank or selling another asset—is essential.

• Risks: Borrowers should be mindful of potential delays in selling their existing property or obtaining permanent financing, which could extend the bridge loan and increase cost .  Engaging experienced advisors helps mitigate these risks.