Is RCR’s Geylang a hot spot once again?

By Michael Lim

/ The Edge Property |

June 28, 2016 11:00 AM SGT

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Out of the top 50 property searches on The Edge Property website, apartment and condominium projects in the Geylang area were among the most sought after. While Geylang may be famous for its red-light district and eateries such as those selling beef hor fun and frog porridge on Lorong 17, and 126 Dim Sum or Wan Dou Sek on Sims Avenue, it is also a popular residential area for those who want reasonably priced freehold apartments near the CBD and the upcoming Paya Lebar Central commercial hub, according to Alan Cheong, head of research for Savills Singapore.

“Buyers of residential units there are typically Singaporeans and permanent residents,” he notes. Tenants, on the other hand, tend to be foreigners who like the area’s proximity to the city and amenities, and relatively affordable rents. “Geylang has a unique character, with its vibrant nightlife, which you can’t find elsewhere in Singapore,” comments Cheong. Geylang is on the city fringe and is therefore considered to be in the Rest of Central Region (RCR). The most-searched condos are mainly older projects, such as the 218-unit freehold Wing Fong Mansions on Lorong 14, which was completed in 1997; the 338-unit freehold The Sunny Spring on Lorong 40, which obtained its Temporary Occupation Permit in 1998; and the 142-unit freehold The Atrium Residences on Lorong 28, which was completed eight years ago.

Wing Fong Mansions has been on investors’ radar because of its affordability and rental yield, says Cheong. As it was built 19 years ago, the unit sizes are bigger than those today. Studios are 700 to 807 sq ft, two-bedroom units are 700 to 1,044 sq ft and three-bedroom units are 1,055 to 1,270 sq ft.

The most recent transaction at the development was for a 1,141 sq ft, three-bedroom unit, which sold for $820,000 ($719 psf) in September 2015. Assuming each bedroom can be leased for $900 to $1,100 a month, the rental rate is likely to be $2,700 to $3,300 a month, which translates into a gross yield of 3.9% to 4.4%.

While the gross rental yield appears to outperform the average for most condos in the RCR and even CCR today, Cheong advises potential buyers to check with their banks or finance houses to find out the loan limit they can obtain for residential properties in Geylang, especially those located in the red-light zone, such as Wing Fong Mansions.

A 1,141 sq ft, three-bedroom unit at Wing Fong Mansions sold for $820,000 ($719 psf) last September

“Local banks do not provide loans for properties in the red-light district, especially those located on Lorong 2 to Lorong 24,” says Eugene Huang, director of Red Brick Mortgage Advisory. “The financial institutions that do are Singapura Finance, Hong Leong Finance and RHB, and buyers can borrow up to 80%.”

Meanwhile, Atrium Residences is popular with permanent residents and foreigners who have families as the units are larger than typical condo units in Geylang. And they are relatively affordable, says Cheong. Like Wing Fong Mansions, two-bedroom units at Atrium Residences are 800 to 807 sq ft, while three-bedroom units are 1,001 to 1,300 sq ft, and penthouses are 1,604 to 2,303 sq ft.

The most recent transaction at Atrium Residences was for a 1, 055 sq ft, three-bedroom unit that changed hands for $1 million ($904 psf) in April. A similar-sized unit was listed for rent at $3,100 a month, which gives a yield of 3.7%. The other draw of Atrium Residences is that it is surrounded by eateries and well served by public transport, says Cheong.

A 1,055 sq ft, three-bedroom unit at Atrium Residences changed hands for $1 million ($904 psf) in April

The Sunny Spring is sought after by Singaporean and PR families because of its proximity to good schools such as Khong Hwa School, Tanjong Katong Secondary School, Chung Cheng High School and Dunman High School. It is also a short walk away from the upcoming Paya Lebar Central. The 338-unit project contains three- and four-bedroom units of 872 to 2,121 sq ft. Recent transactions at the development include a 1, 200 sq ft, three-bedroom unit on the eighth floor, which was sold for $1.1 million in March, and a 1,066 sq ft, three-bedroom unit on the fourth floor, which was sold for $1.05 million in May.

A 1,200 sq ft, three-bedroom unit on the eighth floor of The Sunny Spring was sold for $1.1 million in March and a 1,066 sq ft, three-bedroom unit on the fourth floor was sold for $1.05 million in May

“Interest in the development is coming mainly from upgraders who are looking to purchase for their own use,” says Cheong. “Plus, it’s a value buy, with three-bedroom units in the $1 million range. You will be hard-pressed to find a similar-sized freehold condo unit at this price anywhere else in Singapore.

Top 50 searches in Rest of Central Region from Jan 1 to June 19

Project	Property Type	Land Tenure	Completion	Total no of units
AALTO	Condominium	Freehold	2010	196
ALEXIS	Apartment	Freehold	2012	293
ATRIUM RESIDENCES	Apartment	Freehold	2008	142
AVA TOWERS	Apartment	Freehold	1993	124
BARTLEY RIDGE	Condominium	99 Yrs From 16/04/2012	Uncompleted	868
BEACON HEIGHTS	Condominium	999 Yrs From 02/06/1882	2012	212
BISHAN 8	Condominium	99 Yrs From 09/10/1996	1999	200
CARIBBEAN AT KEPPEL BAY	Condominium	99 Yrs From 16/08/1999	2004	969
CITY SQUARE RESIDENCES	Condominium	Freehold	2009	910
CITYLIGHTS	Condominium	99 Yrs From 05/01/2004	2007	600
CLOVER BY THE PARK	Condominium	99 Yrs From 10/09/2007	2011	616
COSTA RHU	Condominium	99 Yrs From 30/05/1994	1997	737
DOVER PARKVIEW	Condominium	99 Yrs From 01/12/1993	1997	686
EIGHT RIVERSUITES	Condominium	99 Yrs From 11/07/2011	2016	843
EMERALD GARDEN	Condominium	999 Yrs From 01/10/1827	1999	265
FULCRUM	Condominium	Freehold	2016	128
GEM RESIDENCES	Condominium	99 Years Leasehold	Uncompleted	578
HERITAGE VIEW	Condominium	99 Yrs From 12/08/1996	2000	618
HIGHLINE RESIDENCES	Condominium	99 Yrs From 22/07/2013	Uncompleted	500
JARDIN	Condominium	Freehold	2012	140
MAPLEWOODS	Condominium	Freehold	1997	697
MERAPRIME	Condominium	99 Yrs From 20/06/2003	2006	213
ONE AMBER	Condominium	Freehold	2010	562
PANDAN VALLEY	Condominium	Freehold	1978	605
PEARL BANK APARTMENT	Apartment	99 Yrs From 02/06/1970	1976	280
PEBBLE BAY	Condominium	99 Yrs From 09/03/1994	1997	510
PRINCIPAL GARDEN	Condominium	99 Years Leasehold	Uncompleted	663
QUEENS	Condominium	99 Yrs From 16/02/1998	2002	722
REFLECTIONS AT KEPPEL BAY	Condominium	99 Yrs From 15/03/2006	2011	1,129
RIVER PLACE	Condominium	99 Yrs From 07/11/1995	2000	509
SIGNATURE PARK	Condominium	Freehold	1998	928
SIMS URBAN OASIS	Condominium	99 Yrs From 29/07/2014	Uncompleted	1,024
SKY HABITAT	Condominium	99 Yrs From 30/05/2011	2015	509
SKY VUE	Condominium	99 Yrs From 04/03/2013	Uncompleted	694
STURDEE RESIDENCES	Condominium	99 Years Leasehold	Uncompleted	305
THE ANCHORAGE	Condominium	Freehold	1997	775
THE CASCADIA	Condominium	Freehold	2010	536
THE INTERLACE	Condominium	99 Yrs From 11/02/2009	2013	1,040
THE METROPOLITAN CONDOMINIUM	Condominium	99 Yrs From 17/02/2006	2009	382
THE MEYERISE	Condominium	Freehold	2014	239
THE POIZ RESIDENCES	Apartment	99 Years Leasehold	Uncompleted	731
THE RICHMOND	Apartment	Freehold	1999	38
THE STERLING	Condominium	Freehold	2000	232
THE SUNNY SPRING	Apartment	Freehold	1998	338
THOMSON GRAND	Condominium	99 Yrs From 08/02/2010	2015	339
THOMSON IMPRESSIONS	Apartment	99 Years Leasehold	Uncompleted	288
TREVISTA	Condominium	99 Yrs From 15/07/2008	2011	590
TWIN REGENCY	Condominium	Freehold	2007	234
WATERBANK AT DAKOTA	Condominium	99 Yrs From 07/12/2009	2013	616
WING FONG MANSIONS	Apartment	Freehold	1997	218

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