This article is a continuation of STProperty’s ongoing analysis of private property prices in neighbourhoods that have a history of criminal activities, and are not looked upon favourably by investors seeking quiet and pleasant environments to raise kids.

Using Singapore property Watch, we gathered data on the streets in a one-kilometer radius around Geylang Lorong 24, reportedly known for its vice activities, and analysed them for spillover effects on property prices.

Analysis of private property prices by type in the Geylang area

Source: Singapore Property Watch (SPW)

Based on the chart above, it appears that terrace house prices located on Lorong 24a command the highest prices, while apartment prices tend to be quite stable. The sample covers over 800 transactions taken from the past three years.

In addition, there appears to be a general home price appreciation (HPA) relative to prices of other terrace houses located close to Lorong 24. A possible reason could be that they are renting out their property units to foreigners seeking convenience and accessibility to the city centre. The time taken to travel to the city area from Geylang is about 10 to 15 minutes, minus the traffic congestion along Nicoll Highway during peak hours.

The Geylang area is also known for its conservation buildings which could have provided some pricing premiums due to the historical significance associated with such colonial era buildings. Given the conservation status accorded by the National Heritage Board (NHB), it is not surprising that some of the average property valuations along Lorong 24a could command as high as $3.5 million.

In addition, there are several reasonably good schools around the neighbourhood, including Dunman High School, Geylang Methodist School, Paya lebar Methodist Girls School, among others. This might lead buyers to discount undesirable vice factors when deciding on their property purchases.

In summary, we believe that the ongoing vice activities in Geylang might not have a significant impact on private property valuations. Investors could be thinking long-term, discounting some of the negative factors associated with owning a property in the Geylang district. We believe that each neighbourhood is unique, and will continue to analyse other areas that have past histories of criminal activities, and determine the impacts of such activities on the property valuations.

Source: ST Property 11th April 2014

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Analysis of private property prices by type in the Geylang area

Analysis of private property prices by type in the Geylang area

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