My bet is definitely on that government will move the red light district away from Geylang.
Reasons
1. The area there is too prime to be use for red light district
2. The new sports hub is very near, very bad for Singapore's image when they start to host international events
3. If the government can plan to move the old(hospice) to JB, why not the vice? During my recent weekend trips to JB, I noticed that Singapore immigration has open up more lanes and the queue has reduced substantially. With also plans to build MRT across to JB, putting vice across to JB will be much easier.
Wild thoughts for thoughts.....