Is buying a property in Geylang a good investment?

Last updated on November 10, 2024

Yes, the analysis of Singapore's property market is included in our pack

If you've savored the diverse cuisine and vibrant nightlife of Geylang, you may have thought about securing a property in this lively Singapore district, enjoying its energetic atmosphere and culinary delights.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Singapore, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Geylang?

Geylang in Singapore stands out as an attractive location for property buyers for several reasons, and its appeal is quite distinct when compared to other real estate markets in Singapore.

What's particularly notable about Geylang is its unique blend of cultural heritage, vibrant street life, and a diverse range of dining and entertainment options. This area is renowned for its historical shophouses and bustling night markets, offering an ambiance that's both lively and steeped in tradition.

This contrasts with the more polished and modern areas like Marina Bay or Orchard Road, which, while sleek, don't have the same cultural depth and variety that Geylang offers.

Geylang's popularity among property buyers began to surge in the past decade. This rise in interest can be attributed to its relatively affordable property prices compared to the skyrocketing costs in other parts of Singapore.

Additionally, its proximity to the central business district and excellent connectivity through public transport makes it an appealing choice for working professionals. As for whether the hype around Geylang will remain, the trends indicate that its appeal is likely to continue.

The ongoing urban renewal projects and the government's efforts to preserve its cultural heritage while modernizing its infrastructure suggest a sustainable growth in interest.

The type of people attracted to Geylang is quite diverse. You'll find young professionals drawn to the area's affordability and vibrant lifestyle. There's also a growing community of expatriates who appreciate the local culture and the convenience of living close to the city center.

On the flip side, families might be less inclined to settle in Geylang, primarily due to the perception of it being bustling and less residential in nature.

However, Geylang does have its weaknesses. The area is known for being busier and noisier compared to quieter residential areas like Bukit Timah or Serangoon. This can be a turn-off for those seeking a more tranquil living environment.

Another point of concern is the reputation Geylang has had historically for its nightlife and entertainment spots, which might not appeal to everyone and could be a factor in terms of family-friendliness. While the area is undergoing transformation, these aspects of its character still linger and influence buyer perceptions.

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Why is Geylang a nice place to live?

Geylang is often seen as a hidden gem for those looking to experience a unique blend of cultural vibrancy and urban living.

What sets it apart is its rich lifestyle and culture. Geylang is bustling with life, famous for its rows of shophouses that host a variety of local eateries, markets, and traditional shops.

This area is a haven for food enthusiasts, offering some of the best local cuisines, ranging from Michelin-starred street food to traditional Peranakan dishes.

The expat community in Geylang is quite diverse and growing. Many expatriates are drawn to the area for its cultural richness and comparatively affordable living costs.

Unlike more central areas like Orchard Road or Marina Bay, living in Geylang doesn't put as much strain on the wallet, making it a more budget-friendly option while still offering the convenience of city living.

When it comes to safety, Geylang has seen significant improvements over the years. The area used to have a reputation for being less safe, especially at night, but with increased policing and community efforts, it has become much safer and more family-friendly.

In terms of amenities and facilities, Geylang doesn't fall short. There are several well-known schools such as Geylang Methodist Primary and Secondary Schools, offering good educational options.

Healthcare facilities are readily available with the likes of Parkway East Hospital providing medical services. For shopping and leisure, residents can visit the nearby Paya Lebar Quarter, a modern mall with a wide range of shops and eateries.

The infrastructure in Geylang is well-developed. Roads are well-maintained, and utility services including water and electricity are reliable. Internet connectivity is excellent, as is the case across most of Singapore, ensuring that residents can stay connected effortlessly.

Accessibility is one of Geylang's strong suits. It's well-connected to other parts of Singapore, making commuting relatively hassle-free. For international travel, Changi Airport is easily accessible via the East Coast Parkway, making it convenient for frequent travelers.

Public transportation options in Geylang are plentiful. The area is served by multiple MRT stations, such as Aljunied, Paya Lebar, and Dakota, which link it to various parts of Singapore.

Moreover, a dense network of buses operates throughout the area, making it easy to get around without a car.

How much does it cost to buy real estate in Geylang?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Singapore.

The cost of buying a property in Geylang varies widely based on several factors, including the type of property, its location within the neighborhood, and current market trends.

Geylang offers a diverse range of residential properties, from apartments and condominiums to landed houses. The area is particularly known for its shophouses, which blend residential living with commercial spaces, a unique aspect of Singapore's real estate landscape.

In Geylang, apartments and condominiums are in high demand. This demand stems from the area's urban vibe, proximity to the central business district, and relatively more affordable prices compared to the prime districts in Singapore.

Landed properties in Geylang are less common but highly sought after for their rarity and larger living space.

The property market in Geylang consists of both new developments and resale properties. In recent years, there has been an increase in new condominium projects, catering to the rising interest among buyers and investors looking for modern amenities and facilities.

Speaking of price range, properties in Geylang can vary significantly in cost. For a rough idea, prices per square meter can range from S$1,500 to S$2,500 for apartments and condominiums, depending on the age of the building, its condition, and exact location. Landed properties and shophouses, due to their rarity and larger sizes, can command higher prices.

Over recent years, property values in Geylang have been on an upward trend. This increase can be attributed to ongoing urban redevelopment, improved infrastructure, and a growing interest in city-fringe living.

The area's transformation from a predominantly industrial and commercial zone to a more residential and lifestyle-oriented neighborhood has positively impacted property values.

Looking ahead, there are several developments and city planning changes that could affect property values in Geylang.

For instance, the Paya Lebar Central development, a major commercial hub in the making, is expected to boost the attractiveness of nearby areas like Geylang.

Additionally, the government's efforts to revitalize older estates and improve public transport connectivity in the region are likely to further enhance the appeal of Geylang.

Predictions for the real estate market in Geylang in the coming years lean towards continued growth. Factors such as ongoing urban renewal, infrastructural improvements, and the area's cultural appeal are likely to keep drawing interest.

Moreover, as Singapore continues to grow as a global city, areas like Geylang that offer a mix of culture, convenience, and comparatively affordable property prices are likely to see sustained demand.

Where is the best area to buy a property in Geylang?

When considering the best area to buy a property in Geylang, it's important to understand that Geylang's diverse character means different parts of the neighborhood offer varied atmospheres, property types, and price points.

Geylang is broadly divided into even-numbered and odd-numbered sectors. The even-numbered sectors, closer to Sims Avenue and Geylang Road, are known for their lively street life, abundant food options, and vibrant night scene. This area tends to have more commercial activity.

As a result, properties here, mainly apartments and condominiums, are often sought after by those who enjoy a bustling urban environment and want to be close to the action.

On the other hand, the odd-numbered sectors of Geylang are generally quieter and more residential. This part of Geylang offers a different atmosphere, more subdued and family-friendly. You'll find a mix of older and newer residential developments here, including condominiums and some landed properties.

For buyers seeking a balance between urban convenience and a more relaxed environment, these areas are ideal. Prices can be slightly more affordable here compared to the even-numbered sectors.

An up-and-coming area within Geylang that buyers should be aware of is the vicinity around Paya Lebar and Dakota. With the development of Paya Lebar Central into a bustling commercial hub.

Properties in nearby areas are becoming increasingly attractive. These locations offer the dual benefit of proximity to a commercial center and the charm of Geylang's cultural and culinary scene.

Areas like Aljunied and the parts closer to the East Coast Park are also worth considering. These areas offer good connectivity to the rest of Singapore and are close to recreational spaces, making them attractive for both investment and residential purposes.

Conversely, areas closer to the red-light district in Geylang, particularly in the lower-numbered sectors, might not be advisable for everyone.

While safety has improved over the years, these areas still retain a certain nightlife character that might not be suitable for families or those seeking a quieter residential environment.

Additionally, the transient nature of some parts of these sectors might not appeal to those looking for a stable, long-term community feel.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Singapore.

Area	Atmosphere	Property Types	Price Range	Suitability
Even-numbered sectors (near Sims Avenue and Geylang Road)	Lively, vibrant night scene	Apartments, Condominiums	Higher	Urban lifestyle enthusiasts
Odd-numbered sectors	Quieter, more residential	Condominiums, Some landed properties	More affordable	Families, those seeking a relaxed environment
Paya Lebar and Dakota vicinity	Developing, near commercial hub	Varied, incl. modern apartments	Varies, generally rising	Investors, professionals
Aljunied, near East Coast Park	Accessible, close to recreational spaces	Mixed residential types	Varies	Recreational enthusiasts, families
Lower-numbered sectors (near red-light district)	Nightlife, more transient	Various, incl. short-term accommodations	Varies	Not ideal for families, those seeking quiet

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Is there a strong rental demand in Geylang?

Geylang does indeed have a strong rental demand, and understanding the nuances of this market can be quite beneficial for potential landlords or investors.

The demand in Geylang is characterized by a mix of both short-term and long-term rentals, but there's a notable lean towards long-term arrangements. This shift is largely due to the area's growing appeal as a residential and lifestyle hub, away from its previous image as merely a transient, nightlife-focused district.

The target demographic for rentals in Geylang is diverse. It includes working professionals, both local and expatriate, who are drawn to the area's proximity to the Central Business District and other employment hubs.

Additionally, there's a growing number of students and young adults attracted to Geylang's vibrant street life, cultural diversity, and affordability compared to other central areas in Singapore.

Potential tenants in Geylang typically look for modern, well-maintained apartments or condominiums. These properties are preferred for their amenities, security, and community feel.

Landed properties and shophouses are also in demand but might attract a different tenant profile, such as families or groups of professionals willing to share larger living spaces.

Specific areas within Geylang that are particularly attractive for rentals include the vicinity of Aljunied MRT station and areas near Paya Lebar. These locations offer excellent connectivity and are close to various lifestyle amenities, making them ideal for tenants who value convenience and accessibility.

Regarding amenities that can help reduce vacancy rates, properties that offer facilities like gyms, pools, and community spaces are especially appealing. Proximity to public transport, local eateries, and shopping centers also adds to a property's attractiveness.

Such amenities not only enhance the living experience but also position the property as more desirable in a competitive rental market.

In terms of potential returns on investment, properties in Geylang can offer promising yields, particularly as the area continues to develop.

Estimations for rental yields typically range from 3% to 5%, depending on the property type, location, and the state of the market. These figures are quite competitive, especially considering the rising interest in Geylang as a residential area.

Currently, modern apartments and condominiums are experiencing increasing demand and could potentially offer better yields. These properties cater to the lifestyle preferences of the primary tenant groups in Geylang young professionals and expatriates.

As Geylang's reputation continues to evolve from a nightlife-centric area to a more balanced, culturally rich neighborhood, the demand for such properties is likely to increase, potentially leading to higher rental yields and investment returns.

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Is it easy to buy a property as foreigner in Geylang?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Singapore.

Buying a property as a foreigner in Geylang, Singapore in general, is certainly possible but comes with specific regulations and considerations that differ from those for local buyers.

Understanding these nuances is crucial to navigate the purchasing process smoothly and avoid common pitfalls.

Firstly, foreign buyers in Singapore face certain restrictions and additional costs. One of the key regulations is the Additional Buyer's Stamp Duty (ABSD), which is levied on top of the standard Buyer's Stamp Duty (BSD).

This additional duty is significantly higher for foreigners, making the initial cost of purchasing a property more expensive compared to local buyers.

Additionally, while foreigners can freely purchase condominiums and apartments, buying landed properties in Singapore requires explicit approval from the Singapore Land Authority, which is not always granted.

The purchasing process in Geylang is similar to other areas in Singapore. It involves several steps, including property viewing, negotiation, signing of the Option to Purchase (OTP), and finally, the completion of the sale and purchase agreement.

It's a relatively straightforward process but requires diligence in terms of understanding property values, legal requirements, and financial implications.

One of the primary risks associated with property investment in Geylang, as with any real estate investment, is market volatility. Property values can fluctuate based on economic conditions, government policies, and developments within the neighborhood.

Additionally, as Geylang undergoes further gentrification and development, there could be changes in the area's character, which might affect property values and rental demand.

Common mistakes made by foreign buyers often include underestimating the total cost of purchase (including the ABSD), not fully understanding the legal and regulatory framework, and failing to consider the resale potential or rental yield of the property.

Another unique aspect to consider in Singapore is the leasehold nature of many properties – unlike freehold properties, leasehold properties have a finite tenure, which can impact their long-term value.

Working with a local real estate agent or lawyer is highly recommended, especially for foreign buyers. A local expert can provide valuable insights into the market, assist in navigating the legal complexities, and help ensure that all administrative procedures are handled correctly. They can also offer advice tailored to foreign buyers' specific circumstances.

Common exit strategies for property investors in Geylang include selling the property after a period of appreciation or renting it out to generate rental income. Given Geylang's evolving landscape and rental demand, holding onto a property for rental income can be a viable strategy.

However, it's important to stay informed about market trends and regulatory changes, as these can significantly influence the ideal timing for selling or renting out the property.