Thursday, 15 January 2015

Parts of Geylang to be rezoned

Aim to halt building of more homes, to rebalance mix of developments
By Cheryl Ong, The Straits Times, 14 Jan 2015

SOME parts of the infamous red-light district in Geylang may be rezoned to halt the development of more homes.

The area is now a hodgepodge of shophouses, eateries, freehold properties and even brothels - a diverse mix that could cause "issues arising from conflicting uses", said the Urban Redevelopment Authority (URA) yesterday.



Ms Hwang Yu-Ning, group director of physical planning at URA, said: "With more new residential developments in the area, there has been increasing... friction on the ground.

"In our assessment, the growth of new residential communities in the area of Lorongs 4-22 Geylang needs to be rebalanced and moderated."

The URA wants to reclassify areas bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang from "residential/institution" to a new "commercial/institution" zoning once it consults the police and "other agencies".

The rezoned areas could then be used for offices, shops, entertainment outifts such as karaoke joints, or a community club, instead of new residential units.

The affected areas exclude roads, a sports field bounded by Talma Road and Lorong 12 Geylang as well as properties fronting Geylang Road.



The proposed changes would not affect existing or new residential projects that have already been given the green light.

Developments such as Le Regal and Treasures@G6 are now being built in the affected area. However, if they were to be sold in a collective sale, for instance, the new developments could not be residential buildings under the new zoning.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, estimated that there will be almost 300 new homes completed in the area over the next few years - adding more residents who might not appreciate the sleazy activity going on under their noses.

Ms Christine Li, research head at OrangeTee, said a change in land use should bode well for existing residents as values of commercial properties are typically higher. This could stir up interest from developers keen to amalgamate the residential clusters for a sizeable commercial complex, said Mr Desmond Sim, research head at CBRE, South-east Asia.

But the challenge lies in negotiating with the numerous individual owners in the area. Redeveloping the land could be costly as well as development charges are higher for commercial land.

Development charges for a 1,500 sq m commercial plot would be $12.9 million as compared to $3.5 million for a similar residential parcel, noted Ms Li.

Members of the public can submit their feedback in writing to the Permanent Secretary, Ministry of National Development, by Feb 11.





Geylang re-zoning may raise condo values
Experts say less space means better returns for existing units
By Cheryl Ong, The Straits Times, 17 Jan 2015

THE proposal to re-zone some residential parts of Geylang for commercial use could lift the values of nearby condominiums.

Property experts believe reducing the amount of space for homes will bolster values for existing residences as demand is strong, given the area's prime location and good transport links.

"With future supply strapped, owners of existing apartments can expect better returns from their properties, both in terms of rental as well as capital values," said Mr Donald Han, managing director of property consultancy Chestertons.

The proposed zone changes announced by the Urban Redevelopment Authority (URA) on Tuesday are aimed at stemming new residential developments from being built in the areas bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang.

They involve reclassifying land from "residential/institution" use to "commercial/institution".

The move was aimed at "managing friction" arising from the "incompatibility of uses" between residents and commercial activities in the red-light district. There are 24 condominium and apartment blocks - on freehold leases - in the affected zones, two still under construction.

Residents living in the area dotted by nightclubs, eateries and seedy joints have long been up in arms over issues such as noise pollution, illegal parking and littering. Some fear the proposed move will encourage even more shady establishments to be set up.

But experts say the area's proximity to the city centre, Aljunied MRT station and the Singapore Sports Hub make it a popular area, so curtailing the supply of residential land will deliver plenty of upside to existing owners.

Rental yields range between 3 and 5 per cent - about 1 to 1.5 per cent higher than other districts in some instances, because it is common for single units to be rented to multiple tenants in Geylang.

Capital values for existing residences could rise as well, as commercial land typically commands a premium. Though existing residences will not be affected, new developments built in the area must be for either commercial or institutional uses. This includes clans or places of worship.

While the en bloc market is virtually dead now, the small development sites available in Geylang could attract boutique developers or investors seeking to buy smaller buildings for offices, noted Mr Han. But Dr Chua Yang Liang, head of Southeast Asia research at JLL, added: "The fragmented ownership of the land parcels will make the development of any large- scale commercial project more arduous."

The proposed re-zoning would give the green light to offices, shops, restaurants and entertainment joints. There are already restrictions on the number of eateries in Geylang Road to address parking concerns but there are no limits on the number of commercial operators in the affected areas. However, proposals for new pubs and karaoke lounges would be assessed, taking into account the immediate surroundings. This would be done in consultation with the relevant agencies, said the URA.

Dr Chua also noted that a designated zone for commercial activity could stop an infiltration of businesses into the outlying residential areas but it would not prevent visitors from patronising the shops inside the re-zoned cluster.

A resident, who wanted to be known only as Bernard, was "dead against the move" as it would only "perpetuate the status quo" and "worsen the situation".

"Every day when I come home, I can see the sale of contraband cigarettes at a coffee shop; what has been done to stamp this out and other vices?"

Second Minister for Home Affairs and Trade and Industry S. Iswaran said in reply to a parliamentary question from Marina Parade GRC MP Fatima Lateef in April that the Geylang Neighbourhood Police Centre has about 160 officers - 60 per cent more than other areas. The significant police presence and regular enforcement has lowered the number of "major offences" in Geylang by 36 per cent since 2008, he said.





Rezoning won't change character of Geylang area
More shops, eateries will turn it into more of a retail space: MP Edwin Tong
By Janice Heng, The Straits Times, 23 Jan 2015

THE move to exclude new residences in part of Geylang will not change the red-light area's character, said the MP of the area, Mr Edwin Tong.

Instead, he expects more shops and restaurants to set up there. "That's the sort of thing we're looking at, making it more of a retail space," he told The Straits Times.

The area, currently classified as a "residential/institution" zone, is bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang and is home to a mix of private properties, shophouses, places of worship, eateries, hotels and even brothels.

Last week, the Urban Redevelopment Authority (URA) announced that it will be rezoned to "commercial/institution", which bars new residential projects in the area.

"This is to minimise the issues arising from incompatibility of uses and friction between residential and non-residential uses in the area," said the URA. It said it had received complaints from residents about noise, littering, traffic congestion and illegal parking "arising from the many activities in this neighbourhood".

Since existing properties are not affected, the overall character of the neighbourhood may not change much, said Mr Tong.

Most of the reaction he received to the rezoning news came from residents living near the affected area. "The main questions are about what the new tenants will be," Mr Tong said.

He has barely heard from any residents in the zone itself. There are about 1,000 homes there, with another 300 or so being built.

Owner-occupiers are rare enough that, for instance, there are no grassroots volunteers living in that area.

"A lot of those apartments are rented out but the owners live nearby," said Madam Annie Lim, 57, a member of the Neighbourhood Committee on the opposite side of Geylang Road.

Customer service manager Kang Ngee Wi, 41, lives at Wing Fong Court in Lorong 14. He doubts the rezoning will affect him, but wonders why it was necessary.

The location is good, amenities such as supermarkets are nearby, and new residents must surely expect unsavoury goings-on to come with the territory, he said. "In this type of area, what do you expect?"

Chef Ng Kiang Hui, 54, who also lives at Wing Fong Court, is similarly unfazed. Scuffles sometimes break out in the street, but only among foreign workers. "They only fight each other," he said.

Engineering assistant Martin Loo, 55, has booked a unit at new development Le Regal but does not plan to live there when it is completed by 2016.

For him, the rezoning bodes well: "It should fetch a decent rental as it is easier to rent out any unit with more commercial activities near the precinct."


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