Geylang condo values to rise only if the area sheds off red light reputation: analysts

Will Kranji soon replace it?

There have been talks of condo values rising in Geylang amid rezoning plans.

According to analysts from OSK-DMG, the debate on whether Geylang will see a rise in capital value hinges on if the “light” in Geylang can turn “green” and how long this will take.

OSK-DMG says that market talk has long suggested Kranji to be the next “red light” district, but there are also concerns on its sheer distance and proximity to Johor, which may diminish its appeal.

Should Geylang be replaced, OSK-DMG adds that there are also worries on more spillover effects to Balestier, Joo Chiat, Desker Road etc. OSK-DMG believes that “Geylang remaking” isn’t as straightforward as it appears (more social implications to consider) and is probably a longer-term story for investors who are sourcing for thematic plays.