Geylang Lorongs 4-22 may be re-zoned for commercial use

[reporter2]

http://www.businesstimes.com.sg/real...rea-of-geylang

No more new residential projects in 14 ha area of Geylang

URA proposes rezoning the area from Lorongs 4-22 to new commercial/ institution use from residential/institution use

By Kalpana Rashiwala

[email protected]@KalpanaBT

14 Jan


THE Urban Redevelopment Authority (URA) will not approve any new residential projects in a 14-hectare stretch of Geylang from Lorong 4 to Lorong 22 under a proposed rezoning exercise.

The planning authority is proposing to re-zone the section from the existing residential/institution use to the newly minted commercial, institution use group. The maximum plot ratio (ratio of maximum gross floor area to land area) will remain at 2.8.

The rezoning is to better manage issues arising from conflicting uses in the locale.

With the area seeing more new residential projects being completed, complaints from residents have mounted about the noise, disturbance, traffic and other disamenities by the traditional red-light activity as well as the many small hotels, eateries, bars and other commercial establishments in the area.

Existing residential projects may remain as they are. Likewise, new residential projects in the area which have been approved may proceed to be built. However, when any residential properties in the earmarked belt undergo redevelopment in future, they will have to comply with the approved uses permitted in the new commercial/institution zone. Residential use is barred in the new zone.

Market watchers said it will be a long while before the area's character changes, given the existing fragmented ownership in the belt, with a myriad of apartment developments, hotels and commercial establishments, not forgetting the prostitution dens. However, the rezoning is expected to boost land values in the locale generally (since commercial properties are usually valued more than residential) and spur collective sales.

Knight Frank executive director Mary Sai noted that the location - at one end of Geylang, next to Sims Way and Guillemard Road - is a nice block for the government to try and convert to commercial/institutional use. "Already, the area's existing character is more bent towards commercial - in terms of budget hotels as well as eateries, pawnshops, and other retail outlets in the shophouses fronting Geylang Road." Moreover, the locale is a short drive, via Guillemard Road and Nicoll Highway, to the CBD.

URA noted Geylang's "rich and colourful neighbourhood", interspersed with associations, clans, places of worship, shops, offices and residential uses. "It is also a traditional red-light area."

The mix of uses between Lorongs 4 and 22 are the most diversified in the Geylang area, with fewer residential units as compared to the other lorongs in the location, it added.

"However, with more new residential developments in the area, there has been an increasing spillover of disamenities and friction on the ground between residents and the diverse uses in the area," URA said. For example, there have been complaints from residents on issues of noise, littering, traffic congestion and illegal parking arising from the many activities in this colourful neighbourhood.

"Thus, in consultation with the police and other agencies, our assessment is that the growth of the residential community between Lorongs 4-22 needs to be rebalanced and moderated to minimise friction with residential uses and avoid eroding the character of the area."

The proposed rezoning, which would bar new residential projects, will allow issues arising from conflicting uses to be better managed, and prevent the spillover of disamenities to surrounding areas, URA added.

The belt earmarked for rezoning currently has about 1,000 completed residential units (including recently completed projects such as Royce Residences and Central Imperial). In addition, another 200 units are under construction, including those in projects such as Treasure@G6 and #1 Suites. On top of that, there are about 100 units approved in proposed projects for which construction has yet to begin.

The area proposed for rezoning is bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang. Excluded are the shophouses and other properties fronting Geylang Road (which are mostly zoned commercial) as well as a sports field bounded by Talma Road and Lorong 12 Geylang.

Ms Sai of Knight Frank noted that the area being carved out for the new zone is along the even numbered lorongs (or lanes) of Geylang, which have traditionally been a red-light district. The area is suitable for commercial developments as it is interspersed with budget hotels and shophouses.

CBRE Research, Singapore and South East Asia head, Desmond Sim, said: "There could possibly be some interest from developers or investors to amalgamate existing residential clusters through a collective sale process for redevelopment into sizeable commercial complexes. Over the long term, we expect a positive impact on land values in this precinct."

OrangeTee director Christine Li highlighted that developing the belt earmarked for rezoning will be challenging. "For a proper retail/

commercial development, the land parcels must be big enough. However, the plots in the subject area are fragmented and small in size. The land is also privately held by individual owners, which poses challenges for collective sales.

"In addition, development charge (DC) rates for commercial properties are much higher than residential properties. Based on a development baseline plot ratio of 2.072 and assuming a new project on a 1,500 sq m site tapping a 2.8 plot ratio, the DC payable for a commercial project would be S$12.9 million, compared with S$3.5 million for non-landed residential," she added.

Ms Sai does not reckon that residential values in Geylang will increase in the short term, on account of the authorities not allowing new residential developments in future in the affected area - since there is ample supply of residential properties in the vicinity. Also, the red-light activity in the location will continue.

"Given time, on the other hand, if these commercial developments take off full steam in say 10 years, it may enhance the value of residential properties," she added.

URA said the proposed amendment to the Master Plan will be exhibited until Feb 11, 2015, for public feedback. "We will then review the feedback and see whether any adjustments need to be made to the proposed amendments. This will take a few months."

[JAFCO]

Basically the red light cannot keep adding residential as it will create more underground whore den....by commercialising....govt can still sell whore licence and also collect more from rezoned land..always remember this is $PAP$..."what is wrong with collecting more money"....when did it ever care about local residents...with perpetual lobby and feedback from resident to keep community less foreign run over and sleaze free and booze free...from little india to joo chiat to geylang....it keep or force the locals to live far away to accomodate the ft..so no more complain anymore.......sinkie is just daft

[Regulators]

Whore houses have decentralised and are in places like jurong hdb now.

Basically the red light cannot keep adding residential as it will create more underground whore den....by commercialising....govt can still sell whore licence and also collect more from rezoned land..always remember this is $PAP$..."what is wrong with collecting more money"....when did it ever care about local residents...with perpetual lobby and feedback from resident to keep community less foreign run over and sleaze free and booze free...from little india to joo chiat to geylang....it keep or force the locals to live far away to accomodate the ft..so no more complain anymore.......sinkie is just daft

[bigbear]

yup. the chickens are smart now. why operate in geylang when services can be brought nearer to your house? furthermore, by decentralising service, less competition in the same area.

[Allthepies]

Expect to have big plans coming up : ) Singapore has one of the best government that plan way ahead : )

You look at Marina, JLD you will understand.

Cheers! Many more good years for Singaporeans ahead!

[meow123]

we really need more fools like u,

just blindly angry with the PAP.

no wonder, we need to increase our population through an open-door policy.

go and find another city-state that has a performance like ours.

but, no, i shall not even attempt to speak logic to a cynic...

enjoy your time in the karmic hell fire fueled by your probable financial inability.

you are doing it right, blame others before examining self-responsibility.

[irisng]

Expect to have big plans coming up : ) Singapore has one of the best government that plan way ahead : )

You look at Marina, JLD you will understand.

Cheers! Many more good years for Singaporeans ahead!

It is a "shame" that it is not advisable for a family with young children to stay in Geylang, otherwise going to Merlion is just a short distance away. Went to Merlion last Saturday, the view is fantastic, I think it is a good outing place for a family and also Garden By The Bay, nice view too.

[Kelonguni]

It is a "shame" that it is not advisable for a family with young children to stay in Geylang, otherwise going to Merlion is just a short distance away. Went to Merlion last Saturday, the view is fantastic, I think it is a good outing place for a family and also Garden By The Bay, nice view too.

No choice due to limited land. Must have 1 outlet place like casino etc. Since most heartlands cannot accept this then can only segregate a near central area for this.

[irisng]

Sleazy activity may have prompted rezoning of Geylang

http://www.propertyguru.com.sg/prope...zoning-of-geyl

The illicit red-light activities in Geylang and the types of people it attracts could have been a factor in URA’s decision to propose rezoning Lorongs 4 to 22 from residential/institution to commercial/institution, said Chia Siew Chuin, Director of Research & Advisory at Colliers International.

Those areas also comprise a varied mix of uses including eating houses, small offices, boutique residential projects and budget hotels which are located in shophouses and low-rise buildings.

“While having so many different types of uses in that 700-metre stretch from Lorongs 4 to 22 might add to the human diversity and flavour of this unique locality, disharmonious conflict might occur among the different uses,” Chia noted.

For instance, with trading businesses and eating houses operating during the day, and coffee shops and bars open well beyond midnight, this might create disturbances for the residents there on a 24-hour basis.

Since 2010, around 400 new residential units have been launched in the area, with about 100 units already completed, revealed Colliers. This means some 300 new units will be ready in the coming years, adding more residents.

“In addition, some landlords who have maximised their properties by cramming as many tenants as possible into some of the various residences there might make the area a potential hotbed of conflict and possible disorder, if the residential population continues to increase,” explained Chia.

With the Lorongs rezoned for commercial use, Chia feels developers may choose to build spaces for budget offices catering to SMEs looking to operate on the fringe of the CBD.

“Should the development of such space gain traction in the future, it would not be unreasonable to expect that some of the existing notoriety will be replaced by mainstream businesses,” she said.

Image: Geylang Road. (Source: The Real Singapore)

[irisng]

3 things that might surprise you about the Geylang

http://www.propertyguru.com.sg/prope...about-geylang-

Last week’s news that the Urban Redevelopment Authority (URA) is seeking to stop the development of more housing projects in certain areas of Geylang to prevent potential conflict between the growing number of residents and local businesses, has put a spotlight on the notorious red-light district.

But if you think Geylang is synonymous with sleazy brothels, Bangladeshi workers dormitories and durian stalls, think again. Today, Geylang is fast transforming into a bustling town at the city fringe. Its speed of transformation can be seen in the many construction hoardings and new property showflats that have sprouted up in the area.

Let’s take a look at some interesting facts about Geylang.


The second Chinatown

Geylang is quickly becoming the second Chinatown of Singapore. While the “official” Chinatown in Outram is very touristy with souvenier stalls, night markets and tea shops, the Geylang area is transforming into a second Chinatown complete with TCM clinics, supermarkets and sundry shops selling imported China-made foodstuffs and products, as well as restaurants serving Northern Chinese cuisine such as dumplings and handmade noodles.

There are also numerous RMB money changers with bright LED signboards, Chinese clan associations, Chinese temples, and a significant increase in the number of Chinese expats in recent years. It is understood that while the “official” Chinatown has gone upmarket because it mainly caters to tourists, Geylang is the Chinatown for the masses.


Geylang property economics

Geylang is one of the very few regions in Singapore that defies market forces and economic logic. It’s an unspoken rule that most banks severely restrict or do not issue home loans for properties in Geylang, especially along the even-number lorongs (particularly those below 20) due to its red-light district stigma (although most banks are also relaxing the rule due to increased demand and the cleaning up of Geylang’s image in recent times). This was already a market practice even before the Total Debt Servicing Ratio (TDSR) was introduced.

And yet, Geylang has never failed to attract developers, investors and home buyers from swarming in because its fundamentals remain strong: proximity to the CBD (especially with the improved Nicoll Highway and new Marina Coastal Expressway), high density of amenities as well as vibrancy. A well-known fact is that the most TDSR-defying home buyers can be found in Geylang as the majority forked out the bulk of the purchase price in cash.

Additionally, Geylang is a hotspot with expat rentals. Many expats, especially the Chinese, are inclined to live in Geylang due to its growing status as a second Chinatown and also its good network of transport infrastructure. The nearby Sports Hub is also providing more lifestyle, retail and entertainment options to dwellers in Geylang.


Hipster spots

The Mountbatten-Guillemard area is quickly emerging as a hipster enclave with the mushrooming of indie cafes and eateries due to the increase of expats in the area as well as relatively cheaper rentals. Brawns & Brains (Old Badminton Hall), Maple & Market (Cassia Crescent), Char, and Tuckshop (Guillemard Road), are some of the trendy hangouts that are rapidly changing the F&B and retail scene in Geylang.

[bigbear]

with Geylang a restricted alcohol zone, i expect to see less unsavory characters hanging outside drinking n chatting.

i think its a good start.

[SQ008]

Prostitution and pimps will eventually go high tech with e-commerce and service on demand. In retail line, products can be sent to customers island wide when needed. No need to overstock in one place (Geylang). As such, sooner or later Geylang will change for the better,

[focus]

I think it's more likely government is interested in the industry moving into buildings and hidden from views in a centrally located area like geylang, instead of letting them sprout all over the places.
that's why zoning it as commercial makes sense as the residentia would not be in the vicinity to make complaints.

[teddybear]

If short-term rental in private condos are allowed, they can even rent a day in these private condos for low price and away from Geylang (which is too obvious)! The condos even have security guards to stop private investigators or plain-cloth police from coming in to check (or at least delay them)!

Prostitution and pimps will eventually go high tech with e-commerce and service on demand. In retail line, products can be sent to customers island wide when needed. No need to overstock in one place (Geylang). As such, sooner or later Geylang will change for the better,

[Kelonguni]

If short-term rental in private condos are allowed, they can even rent a day in these private condos for low price and away from Geylang (which is too obvious)! The condos even have security guards to stop private investigators or plain-cloth police from coming in to check (or at least delay them)!

So in general safer to disallow short term rentals or allow it for specific districts only?

[irisng]

So in general safer to disallow short term rentals or allow it for specific districts only?

Best is don't allow for shorter rental in all districts. IMHO, if certain districts are allowed and certain are not, then demand for the ppty might increase for the "allowed" districts, thus causing ppty prices for those districts to increase. Another thing is already mentioned, it might disturb the neighbours with so many strangers in and out of the building, causing insecurity.

[bigbear]

http://www.straitstimes.com/news/sin...ylang-20150126