What Investment Opportunities Will Geylang Property Create? (Part I).
A reader asked me if I can share my insights on the Geylang property plan and if there will be opportunities for buyers and sellers in the future. Since I am very familiar with the location, I answered her question below. In the past few years, I predict that the properties for sale in Geylang will undergo major changes, as the prestige of the location increases, better government initiatives, and so on. Almost all of these have been achieved.
What does the rezoning mean for existing Geylang property owners?
For Geylang property (Geylang properties for sale), the URA proposes to rezone the areas of Geylang Road, Geylang Lorong 22, Kwai Lima Road and Geylang Lorong 4 from “residential/institution” to new “commercial/institution” "Partition.
Compared with the upper Lorong River, there are more commercial activities in the lower reaches of the Lorong River. Upper Lorong has more residential enclaves than Lower Lorong. The proposed rezoning will prohibit new residential projects, will allow issues arising from conflicting uses to be better managed, and prevent the spill over to surrounding areas.
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Does this rezoning have a positive or negative impact on Geylang property (Geylang properties for sale)?
Any Geylang property (Geylang properties for sale) that is to be rebuilt in the future must comply with the approved use permitted by the new commercial/institutional area. Rezoning is expected to generally increase the value of land in the area and stimulate collective sales.
As residential developers who want to take advantage of future opportunities in this area and nearby redevelopment areas need to find more land in this area to build new residential projects, the spillover effect will be brought from dedicated use to Shangluorong. With the current high plot ratio of 2.8, freehold land and properties that are “cheaper than the whole building”, developers will find that Geylang is indeed very profitable.
There are many freehold Geylang properties for sale in Upper Lorong. These properties are older, smaller in scale, and more cost-effective for developers. Developers or investors may be interested in merging existing housing clusters for redevelopment through a collective sales process. Given that by 2030, Paya Lebar Air Base will be relocated to accommodate the higher construction ratio in the area, for economic reasons, developers will further take advantage of these opportunities in the early stages.
In the medium to long term, I expect this will have a positive impact on the land value of the Geylang real estate area.