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Geylang is probably the last place in Singapore that any property investor would look at due to the bad reputation it has earned with its many massage parlours and sleazy nightlife.
However, a study conducted by PropertyGuru revealed that Geylang offers good long term prospects for property investment in Singapore.
According to data from the Urban Redevelopment Authority (URA), average transaction prices of landed homes in the area climbed 37 percent to S$1,270 psf in Q3 2011, from S$930 psf in Q3 2010. Meanwhile, prices of condos rose 38 percent to S$1,045 psf from S$760 psf during the same period.
Capital appreciation in Geylang is nothing new. In 2009, Jay S. returned to Singapore after four years overseas and was looking to acquire a property. A house in Geylang caught his attention but he decided against it, due to the area’s seedy reputation and his concern for the welfare of his three teenage girls.
“I could have bought for S$500,000 at that time and that same property is now worth more than S$1 million. Not buying in Geylang was the biggest property investment mistake I’ve ever made,” he said.
A large part of its appeal is that prices of homes in Geylang are lower than in other areas near the city centre, said Tani Tan, a property agent with Landz Realty.
He noted that Geylang not only scores for affordable housing and capital appreciation, it also offers other benefits, including a good mix of eateries, proximity to MRT stations and a unique charm that makes it a magnet for locals and foreigners. It is also expected to benefit from the upcoming rejuvenation and transformation of Paya Lebar, which is set to become a major commercial hub in the East.
“In my opinion, Geylang will appreciate in value as the neighbourhood undergoes changes which are already being seen in Geylang Lorong 40 and Geylang East with new developments taking shape,” Tan said.
For the latest property news, trends, resources and expert opinions, visit our property news section. Home buyers, sellers or property renters looking for a Singapore property may like to visit http://www.propertyguru.com.sg today.
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Reader Comments: (3 comments)
To HS Tan, I think the stats given has highlighted that property prices in the area have gone up quite a bit in just a few years and the info is based on URA data. Overall a very interesting read and I will definitely want to look at the area now.
Private property prices in Geylang have remained flat for years. Unless the red-light district moves (to where?!?!), and the area cleared of other vice activities, it is unlikely to appreciate much in value. Please do not mislead readers.
The writer or agent mentioned is either vested, or he/she has gotten the figures wrongly interpreted. One must compare like-products - of similar tenure, type, size and location - within the same, and not generalize.