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27-12-13, 14:48
http://www.straitstimes.com/archive/saturday/premium/money/story/geylang-easts-location-near-city-its-trump-card-20131221
HOT SPOT
Geylang East's location near city is its trump card
But it also suffers from traffic jams and being close to red-light district
Published on Dec 21, 2013
By Melissa Tan
GEYLANG'S east side may not have the night-time buzz of the central Geylang Road stretch, but it is fast establishing itself as a mature residential estate.
Consultants say the area stands to benefit from its city-fringe location and the development plans for the area.
Location is its trump card, sitting between the city centre and the Paya Lebar sub-regional centre, said CBRE Research associate director Desmond Sim.
The precinct is dominated by shophouses, small apartment developments and many boutique hotels.
PropNex chief executive Mohamed Ismail said the Geylang East area has a "strong hinterland" of business and office space that would continue to provide rental demand for residential estates and lead to capital appreciation.
State land parcels are being released for development in the vicinity, consultants noted.
A 99-year leasehold residential plot in Geylang East Avenue 1 on the Government Land Sales reserve list was triggered for sale earlier this month after an unnamed developer said it would bid at least $95 million for the 67,146 sq ft land parcel.
That price works out to about $505 per sq ft per plot ratio (psf ppr). The tender closes in January.
This site is near Aljunied MRT station and could add about 215 new private homes to the area.
Reserve list sites go on sale once a developer lodges a minimum acceptable bid, while confirmed list sites go on the market immediately.
A commercial plot in Sims Avenue will be added to the reserve list in the first half of next year, the Government said earlier this week.
This land could be developed into about 935,814 sq ft of commercial space in gross floor area.
Several small residential projects have been launched recently in Geylang's east, including Grandview Suites in Lorong 22 and The Centren in Lorong 27. Both went on sale in October and are freehold.
At the 52-unit Grandview Suites, 41 units were sold by the end of last month, according to Urban Redevelopment Authority (URA) data. The median price last month was $1,184 psf.
But sales have been lacklustre at the The Centren, which has seen only four units out of a total 34 sold as at Nov 30, URA figures show. The median price last month was $1,419 psf.
Other new launches this year include the 80-unit #1 Loft.
It was launched in January and was 95 per cent sold as at last month at an average price of about $1,300 psf, according to CBRE Research.
URA data for the project in Lorong 24 shows that only three units have been sold.
Another project in Lorong 24, the 56-unit The Octet, launched in April and saw 45 per cent of the homes sold as at November, CBRE Research said. The average price was also about $1,300 psf.
Mr Sim noted that median residential capital values for Geylang have risen gradually over the past three years and are poised to increase further from "possible private sector-driven urban revitalisation and regeneration in the future".
However, Mr Ismail noted that the area could still come with a stigma attached due to Geylang's infamy as a red-light district.
Mr Sim also said that the area is often congested, which leads to traffic delays.
[email protected]
HOT SPOT
Geylang East's location near city is its trump card
But it also suffers from traffic jams and being close to red-light district
Published on Dec 21, 2013
By Melissa Tan
GEYLANG'S east side may not have the night-time buzz of the central Geylang Road stretch, but it is fast establishing itself as a mature residential estate.
Consultants say the area stands to benefit from its city-fringe location and the development plans for the area.
Location is its trump card, sitting between the city centre and the Paya Lebar sub-regional centre, said CBRE Research associate director Desmond Sim.
The precinct is dominated by shophouses, small apartment developments and many boutique hotels.
PropNex chief executive Mohamed Ismail said the Geylang East area has a "strong hinterland" of business and office space that would continue to provide rental demand for residential estates and lead to capital appreciation.
State land parcels are being released for development in the vicinity, consultants noted.
A 99-year leasehold residential plot in Geylang East Avenue 1 on the Government Land Sales reserve list was triggered for sale earlier this month after an unnamed developer said it would bid at least $95 million for the 67,146 sq ft land parcel.
That price works out to about $505 per sq ft per plot ratio (psf ppr). The tender closes in January.
This site is near Aljunied MRT station and could add about 215 new private homes to the area.
Reserve list sites go on sale once a developer lodges a minimum acceptable bid, while confirmed list sites go on the market immediately.
A commercial plot in Sims Avenue will be added to the reserve list in the first half of next year, the Government said earlier this week.
This land could be developed into about 935,814 sq ft of commercial space in gross floor area.
Several small residential projects have been launched recently in Geylang's east, including Grandview Suites in Lorong 22 and The Centren in Lorong 27. Both went on sale in October and are freehold.
At the 52-unit Grandview Suites, 41 units were sold by the end of last month, according to Urban Redevelopment Authority (URA) data. The median price last month was $1,184 psf.
But sales have been lacklustre at the The Centren, which has seen only four units out of a total 34 sold as at Nov 30, URA figures show. The median price last month was $1,419 psf.
Other new launches this year include the 80-unit #1 Loft.
It was launched in January and was 95 per cent sold as at last month at an average price of about $1,300 psf, according to CBRE Research.
URA data for the project in Lorong 24 shows that only three units have been sold.
Another project in Lorong 24, the 56-unit The Octet, launched in April and saw 45 per cent of the homes sold as at November, CBRE Research said. The average price was also about $1,300 psf.
Mr Sim noted that median residential capital values for Geylang have risen gradually over the past three years and are poised to increase further from "possible private sector-driven urban revitalisation and regeneration in the future".
However, Mr Ismail noted that the area could still come with a stigma attached due to Geylang's infamy as a red-light district.
Mr Sim also said that the area is often congested, which leads to traffic delays.
[email protected]