Friday, March 23, 2012

Geylang sees boom in home launches

Geylang (pictured), which is considered by many as a red-light district in Singapore, is in the middle of a building boom, with developers taking advantage of its proximity to the city centre.
According to a report by The Straits Times, nearly 1,900 new residential units across over 25 developments are expected to be completed over the next three to four years, and many of these units will be shoebox apartments, which is a new trend for Singaporeans, expats and investors.

These new private homes will range from less than 400 sq ft to approximately 600 sq ft, and many agents are confident that these small units will remain popular due to their location.
“Location-wise, going to the CBD (Central Business District) is five to seven minutes' drive. With the upcoming Paya Lebar commercial hub, this whole Geylang, Kallang area will be between the CBD and the hub,” said a property agent.

However, the main challenge is Geylang's seedy reputation. The report said that there were concerns that units in the area would draw a wrong crowd.

“I have had clients ask me why all the rooms (in Geylang units) have attached bathrooms. You could read more into that, in the sense that they may be used as serviced apartments, dormitories or budget hotels,” said Colin Tan, Research Head at Chesterton Suntec International.

He noted that banks may be unwilling to lend to investors due to the seedy reputation of the area.
“In official red-light areas, some banks won't want to lend their names to such projects, because they are considered high-risk,” he said.

“Second, you are not sure if the activities that occur in those units are legal or not. Another concern is the reputation of the bank; it may not want to be associated with such properties.”

View the original article here

Source From Property Guru

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