Properties in Geylang Area: Potential?

[mcmlxxvi]

Folks, about 5 years ago, I started this thread and many folks ridiculed me when I brought up the potential and they said there was no hope for property investment in Geylang.

Back then, I had just invested in Atrium Residences.

Since then we have seen many more new condo projects and prices have since gone up quite a bit. My investment is Atrium has almost doubled. And just this week, I rented out my 1055 sq ft 3 room unit for $3900 per mth This is a $1k increase from my previous tenant. That is a rental yield of more than 7%.

Someone asked who would want to stay near the red light district? Well, definitely not locals. And foreigners especially singles don't seem to care. All they want is convenience and close proximity to town. In my case, I rented my unit to 3 British working adults - and my wife commented they were rather good looking,(that's 3 more new prospects for the stray pros who occasional might come to Lor28 )

But seriously, I see more opportunity in Geylang especially when we compare the high rents elsewhere. In the meantime, am just going to sit tight on my investment until the rest of the properties near by reach TOP as I expect Atrium to jack up further in price.

Welcome back bro Daredevil!!! Long time no c...

Good to hear your success stories. I too have faith in Geylang. The most undervalued since 2000s... recently then reach their potential, 1200-1300psf.

[en9okyc]

Hi Daredevil, same same for me. Been harping on about the potential etc... My property has doubled as well and my yields are the same. I also think that there is still a lot of potential probably another 20% - 50% upside in view of the new developments in Paya Lebar, Guillimard and more importantly the new stadium (which is starting to take shape!).

I heard the new stadium will be completed in 2014 and that Singapore was aiming to host the asian games in 2015 or something to that effect.

Just wondering if anyone has heard any news on the Kallang riverside development?

Folks, about 5 years ago, I started this thread and many folks ridiculed me when I brought up the potential and they said there was no hope for property investment in Geylang.

Back then, I had just invested in Atrium Residences.

Since then we have seen many more new condo projects and prices have since gone up quite a bit. My investment is Atrium has almost doubled. And just this week, I rented out my 1055 sq ft 3 room unit for $3900 per mth This is a $1k increase from my previous tenant. That is a rental yield of more than 7%.

Someone asked who would want to stay near the red light district? Well, definitely not locals. And foreigners especially singles don't seem to care. All they want is convenience and close proximity to town. In my case, I rented my unit to 3 British working adults - and my wife commented they were rather good looking,(that's 3 more new prospects for the stray pros who occasional might come to Lor28 )

But seriously, I see more opportunity in Geylang especially when we compare the high rents elsewhere. In the meantime, am just going to sit tight on my investment until the rest of the properties near by reach TOP as I expect Atrium to jack up further in price.

[Tey Allen]

I think foreigners will set the price trending up in Geylang for locals to see the potential then they will join in to buy to push it higher.

[anythingwhatever]

The work on Geylang River is massive!!

"Tan-Tio" for buyers of The Water Edge @ G38...

[TheOnlyGayInTheVillage]

Koh bros? Of cheese condo fame

[phantom_opera]

Thanks for all enblocs ... Geylang looks much more like Singapore than Chicken Den now

[hyenergix]

Thanks for all enblocs ... Geylang looks much more like Singapore than Chicken Den now

Dun say too fast! The chicken will come home to roost again!

[ZeeWee]

Dun say too fast! The chicken will come home to roost again!

No place to invest?

Geylang = Chicken
Serangoon = Bangali
Pasir Ris, Sengkang, Punggol, Woodlands, Jurong = Too ulu

So average Singaporeans where to start their first pot of gold in property investment? Anyone in CCR selling cheap at Pasir Ris PSF?

If the day comes when the Chickens all gone, who will be happier? The people buying 'after' the chickens gone or 'before' the chickens gone?

[hyenergix]

No place to invest?

Geylang = Chicken
Serangoon = Bangali
Pasir Ris, Sengkang, Punggol, Woodlands, Jurong = Too ulu

So average Singaporeans where to start their first pot of gold in property investment? Anyone in CCR selling cheap at Pasir Ris PSF?

If the day comes when the Chickens all gone, who will be happier? The people buying 'after' the chickens gone or 'before' the chickens gone?

Double confirm red-light district at Geylang is here to stay. The higher cost of accommodation in the new apartments will be passed on to clients.

[irisng]

Double confirm red-light district at Geylang is here to stay. The higher cost of accommodation in the new apartments will be passed on to clients.

Are you working in the government dept that you have insight news?

[anythingwhatever]

Are you working in the government dept that you have insight news?

Might have "double-confirmed" with Hossan Leong...

[hyenergix]

This one no double confirm

[phantom_opera]

Only place with no reits and monopoly of kopitiam

[anythingwhatever]

Saw from Wanbao the other day on the sharp reduction of brothels in Geylang...

[hyenergix]

Next time just rent the MM by the hour loh. I will be surprised if it is gone for good in Geylang. Where else can the foreign workers find happiness?

[TheOnlyGayInTheVillage]

OFW tap turned off again? Luncles (local uncles) rather go punt at cashinos... Bo seng li for the chickens...

[anythingwhatever]

OFW tap turned off again? Luncles (local uncles) rather go punt at cashinos... Bo seng li for the chickens...

Even GEYLANG UNITED FOOTBALL CLUB isn't spared, with clubhouse (jackpot) earnings down significantly after the opening of IRs:

http://www.todayonline.com/Sports/ED...-but-necessary

[fafalulu]

wondering is it government effort or poor bussinuss that closed up the 210 brothels.

Motel number should also be dropping as businesses are also badly hit when the freelance are chased away

[anythingwhatever]

"Zoom-in" versions of the reports:

[anythingwhatever]

Even GEYLANG UNITED FOOTBALL CLUB isn't spared, with clubhouse (jackpot) earnings down significantly after the opening of IRs:

http://www.todayonline.com/Sports/ED...-but-necessary

Extracts of the Report:

Geylang revealed a 50-per-cent drop in clubhouse takings, fuelled by the Integrated Resorts (IRs) and a recently implemented tax system.

"We're not much better off; all of us are affected by the IRs," said Gombak United Chairman John Yap.

"The funding model is taking a beating due to factors beyond our control, and because attention is being diverted away from the S-League to the LionsXII."

http://imcmsimages.mediacorp.sg/cmsf...763_577628.jpg

[focus]

It's really underpriced with respect to the whole of D15.
Geylang is now in between paya lebar biz hub and the new national stadium plus some integrated development in the old airport(PA HQ) site. Plus 5mins to city and casino.. plus a lot of FH in that area.

I also tempted.. but i scared it will be like that forever... but does not seem to be that way hor.

[anythingwhatever]

It's really underpriced with respect to the whole of D15.
Geylang is now in between paya lebar biz hub and the new national stadium plus some integrated development in the old airport(PA HQ) site. Plus 5mins to city and casino.. plus a lot of FH in that area.

I also tempted.. but i scared it will be like that forever... but does not seem to be that way hor.

You meant D14?

[TheOnlyGayInTheVillage]

wondering is it government effort or poor bussinuss that closed up the 210 brothels.

Motel number should also be dropping as businesses are also badly hit when the freelance are chased away

Unemployment on the rise... will have ripple effect... young man loses job, no allowance to daddy... daddy no money or little money all spend at cashino and where got any left to eat geylang fc.... i mean geylang kfc......

[TheOnlyGayInTheVillage]

When economy improves, the gfc will all b back in force.... however, by then the chix coops all turned into MM housing... no more display number big big using LED... it's the mech car lift display double up as eg...

#03-69 $50 hand $150 full ..... scrolling acrosss...

[doufei]

The ura caveat website has already proven that Geylang is a good investment, especially for those who bought new units 2 years back. Centra suites/studios, casa aerate...etc are already transacted at more than 1500psf. Congratulate to all those who have faith in Geylang and reaping the profits now.

[anythingwhatever]

Saw that there is a condonear completion at No. 10 Aljunied Road, any idea what's the name of the project?

Was looking it up in StreetDirectory though there seemed to be no clue...

[xtreme_46]

Saw that there is a condonear completion at No. 10 Aljunied Road, any idea what's the name of the project?

Was looking it up in StreetDirectory though there seemed to be no clue...

Centra studios

[anythingwhatever]

Centra studios

Huh? No lah, Centra Studios is at the other side of the building...

Centra Studios - Updates June 2012:

[rontan_83]

Huh? No lah, Centra Studios is at the other side of the building...

Hi, any potential for condo development at lorong 24 geylang

[Shanhz]

Hi "Interested Investor",

I own another Geylang unit (99 year leasehold) which I will not tell u where (since i have received so many judgemental comments. A few have even concluded that I am a property agent which I am not).

I will give u my advice based on my own experience in living there for at least 2 years - and renting my apartment for the last 7 years. I do not claim to be an expert (as I always try to learn from others esp the other experts in this forum) but I guess that qualifies me to give u my own 2 cents worth (vs many others who have made judgements based on their own subjective perceptions and impressions).

Here are 3 strategies
Strategy #1: Get a condo near to the MRT stations (Paya Lebar or Aljunied) or the Circle line. While people tend to conclude that Geylang is a red-light district, in reality, the main activites are at lorongs (<20). There might be stray prostitutes from time to time - no choice.

Strategy #2: Do it the LEGAL way. Do not rent to any tom, dick (pun intended) or harry (another pun intended). No Students (let alone prostitutes). Ensure you check their documents. In my last 7 yrs, I have rent out to Chinese, Koreans, and Indians - all are legitimate working professionals in IT, banking (contrary to what is being said in this thread). I have never had to wait more than 1 month to find a tenant and i have not had huge difficulties collecting the rent. In fact, my current tenant is going to extend his current lease and increase his rent by another $500.

Strategy #3: Ensure you have ongoing "intelligence" of your tenants. Check with the guardhouse when you go there for maintenance. You will be surprised how much they know. Also ensure that the condo management knows who you are and how to contact you if there is an emergency. (this advice is applicable even outside Geylang). In my case, I insist that for air-con maintenance, the tenants use my contractor (who reports to me what is going on inside)

Having shared the above strategies, look for condos away from the main activity area. You can consider the odd-number lorongs like The Alcove, where banks are more open to providing loans. Then there are condos in Geylang Central and East (where all banks will provide loans - contrary to popular opinion. ).

A typical condo (>5 years) with 3 rooms cost between $450-550k. Assuming you place a 20% deposit (80%LTV:loan-to-value ratio), and go for the maximum loan period, you should be able to get a $300-500 positive monthly cashflow (that's extra cash after factoring in your condo maintenance).

There are people who are going to pour cold water on my recommendations but it's my own 2 cents worth since u asked.

bro, i am helping a fren seach for a low cost entry level apt. and grandview at lor 22 looks attractive. furthermore lor 22 is main rd and not amongst the chicken den.

what is the tenant profile nowadays? still able to get those genuine FT professionals (not the foreign trash type)?