What Investment Possibility Will Geylang’s Rezoning Create?
On Jan 13, 2015, a proposal to rezone parts of Geylang from Residential/Institution to Commercial/Institution was announced from Residential/Institution to Commercial/Institution by the Urban Redevelopment Authority (URA).
The upcoming launch of Rezi 24 boasts an unprecedented opportunity for families and investors alike to join a thriving community on a prime parcel of freehold real estate. Situated a short distance from the National Stadium and Singapore’s Sporting Hub, Rezi 24 complements a host of not only sporting amenities and clubs but also lifestyle conveniences like shopping centres, educational institutions and resort like facilities. This freehold development is in high demand with an estimate of only 110 elite units that are selling fast.
Gerald Tay being very familiar with the location and kindly share my insights on Geylang’s rezoning plans as well as the future opportunities for sellers and buyers.
“Since 2001, Geylang has always been on my location radar for great property buys. At the time, people thought I was crazy to buy into Geylang, butI’ve achieved profitable results.” Gerald Tay said:
In the last few years, Gerald Tay has predicted that Geylang will have many changes in its commercial and residential landscape, with an advance in locational strategy, better government initiatives and much more. Almost all of them took place …
1. What does the rezoning mean for existing property owners in Rezi 24 at Geylang?
Rezi 24 at Geylang is an exclusive homes that located right at Lorong 24 Geylang, District 14 Singapore. Proudly developed by the jointly of leading developers who are KSH Holdings, SLB Development Ltd and Heeton Holdings Limited.
URA proposes to rezone the area bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang, from ‘Residential/Institution’ to a new ‘Commercial/Institution’ zoning,excluding the parcels of land zoned Road, the lots fronting Geylang Road and the sports field bounded by Talma Road and Lorong 12 Geylang.
Recently, URA will not approve any more new residential projects in a 14-hectare stretch of Geylang from Lorong 4 to Lorong 22. Existing residential projects may remain the same. Similarly, new residential projects in the approved area can proceed with construction. Residential use is prohibited in the new area.
The commercial activities in the lower Lorongs is more than the upper Lorongs. There are more residential enclaves in the upper Lorongs versus the lower Lorongs. The proposed re-zoning, which will prevent new residential projects, will allow problems arising from the use of conflict to be better managed and prevent incidents from spilling over into surrounding areas.
2. Does this rezoning have a positive or negative impact on enbloc potential?
The rezoning is expected to boost land values in the location generally and spur collective sales. With its current high plot ratio of 2.8, freehold land and ‘cheaper to enbloc’ properties, developers will find Geylang very profitable indeed.
The advantages of the freehold residential properties in the upper Lorongs that are older, smaller in size and more cost-effective for developers to enbloc. With the possibility of be some profit from developers or investors to incorporate existing residential clusters through the collective sale process for redevelopment.
Given that by 2030, PayaLebarAirbase
will be relocated to accommodate the higher construction rates in the region, developers will continue to exploit these opportunities in the early years for economic reasons.
3. What might be the government’s vision for Geylang as a business hub? How would it fit in with the payalebar and Kallang business hubs?
Rezi 24 Residences is strategically located in the city fringe with an abundance of Dakota MRT and transport connectivity serving as a central fringe hub for ease of access to the CBD, Marina Bay and city centre, the locale of Geylang and its reputation forms a ‘huge thorn on a rose’ for the government. For the last 15 years, the government has implemented hard measures to crack down on the many illegal activities popular in the area such as illegal street-walkers and gambling. Today’s Geylang is very different from the old Geylang of the past.
With the new plan, we can expect the value of assets and rental income to increase sharply because of the synergy in the region as a business center and with nearby business centers.
The current commercial development of PayaLebar, nearby Marina Bay, future TanjongPagar and the elimination of the PayaLebar air base in 2030, will further enhance Geylang's reputation and commercial viability as the next place to live and legal commercial activities.
4. Should investors start looking out for opportunities in Geylang, if they have not already invested there? Or do you think the sellers would have priced in the proposed changes?
In 2003, Geylang properties were priced in the region of $300 per square foot. In 2014, prices are below $1,000 per square foot for older freehold properties in the area. This has made Geylang one of the most affordable places for living and business today.
Geylang has 4 MRT stations situated within a 12 min-walking radius – the furthest is Dakota MRT. It is easily accessible to major expressways such as the PIE, KPE, ECP, MCE, and CTE. It’s also a 10 min drive to the CBD, Marina Bay and future TanjongPagar redevelopment areas. Although prices and rents are low for now.
The Geylang area as well as Rezi 24 Dakota MRT is very fragmented with many different owners, both businesses and residential. Enbloc can be challenging for developers. But for the successful ones, the sky is the limit.
By guest contributor Gerald Tay, who is the founder and coach at CREI Academy Group Pte Ltd, an organization dedicated to empowering retail property investors with smarter investing philosophy and strategies. He is a full-time investor with over 13 years of solid experience in building his wealth through Property Investment and is financially wealthy today. Posted courtesy of www.Propwise.sg, a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide.
Within walking distance lies a multitude of MRT stations connected to the islandwide network of train lines to get you anywhere. What’s more, with multiple expressways and Nicoll Highway nearby, the city is just a mere 7 minutes away by car. Now, go to visit Rezi 24 Location!!!