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."