August 2020 HDB BTO Sales Launch - Geylang Analysis

Updated: Oct 13, 2020

Summary

Probably the star buy of the August 2020 BTO sales exercise with only 420 units on offer. The Geylang BTO is expected to be the most oversubscribed of the lot. The proverbial toto-unit?
Resale units around this launch are going for a median price of $351,000 and $665,000 for 3RM and 4RM units respectively. However, these include 15 to 50 year old units.
Units from Sri Geylang Serai are the newest to enter the resale market in Geylang, and a 4RM unit in that development has trended at a median price of $650,000 over the last 5 years.
Faultless connectivity with a plethora of amenities on all sides. Top-notch location.

Geylang BTO August 2020 Snapshot

Source: HDB

Probably the star buy of the August 2020 launch, this development will only have 420 3R and 4R units and is thus expected to be heavily oversubscribed. While the development is said to be in Geylang, this area near Dakota is quite different. For those that prefer living off in the fringes away from the traffic and bustle, while also wanting access to cultural exploits Geylang has to offer, this is it. It is quite similar to what BTOs in Boon Keng offer with regard to Little India – not quite in the thick of it, yet easily accessible. The Central Business District (CDB) is only a 15-20 mins drive away. But wait. It gets better. For those that do not drive, Dakota MRT is literally a stone's throw away. The proverbial toto-unit?
For more information, please click here.

Source: HDB

General Price Trends in Geylang

Prices for resale units in Geylang, especially for 3RM and 4RM units have been on a decline for a few years. However, one must understand that many flats in Geylang are old, so with declining leases, this is not unexpected. In fact, over the last 5 years, a vast majority of all transactions were for units with less than 70 years of remaining lease. A significant number of these involved units with less than 60 years of remaining lease. (Click on Dashboard 1 to dive deeper into overall price trends in Geylang). Please access dashboards in Chrome.
Thus far in 2020, the median price of 3RM units in Geylang is $255,500 while $450,000 for 4RM units.

Resale Price Trends in Vicinity of BTO

The median price of 3RM units transacted within a radius of 500m is about $351,500, and $665,000 for 4RM units so far in 2020. There are a mixture of old and newer units in the area although more of the latter, hence the higher median price compared to the overall price in Geylang. The newer 15 year old units in Pine Green (Jalan Tiga) have seen a drop in the median price of 4RM units ($650,000) since peaking in 2017 ($728,000).

Resale Price Trends of Sri Geylang Serai

For more perspective, let us have a look at how prices of the newest units in Geylang are trending. For this, we must go 1.5 km north-east of the August BTO launch to Sri Geylang Serai. The lease for this development commenced in 2011, and the units came into the resale market in 2015. Since then, over 100 units have been transacted in the resale market, all of which were 4RM units. This development only has 4RM units.
The median price of 4RM units in Sri Geylang Serai has gone up from $630,000 in 2015 to $660,000 in 2020. Over the least 5 years, units have transacted at a median price of $650,000.

If you wish to drill-down into historical resale transactions in Geylang, you can click on the Dashboard 2 below. The dashboard contains data from 1990 - July 2020. Please access dashboards in Chrome.

Last Few Geylang BTO Launches & Indicative Price Range

Possibly in a bid for renewal, Geylang has had several BTO launches over the last few years, namely Macpherson Spring (2015), Eunos Court (2017), Pine Vista & Dakota Breeze (2017) and Ubi Grove (2018). Macpherson Spring will be coming out into the resale market soon, so resale prices from that development could offer more insights of what to expect from this August 2020 Geylang BTO.

Given a starting BTO launch price of $403,000 for a 4RM unit at Macpherson Spring, and referencing it with 4RM median resale price of $570,000 from the lower floor units (01-03) of Sri Geylang Serai over the least 5 years, potential earnings expected may be upwards of $170,000.

Development Plans

Upgrading of Mountbatten Community Club to better serve increased housing in the area.
More residential developments at Dakota Crescent and uplifting of common areas.
Commercial developments at Paya Lebar Central to bring jobs closer to residents.
Development of a new community, civic and cultural centre, Wisma Geylang Serai, at the Geylang Serai Precinct.
Eldercare facilities north of Macpherson MRT offering nursing home, custodial day-care, rehabilitation and home-based care services.
For more details about development plans, please click here.

Pros/Cons

East Coast Beach/Katong/Marine Parade areas are very accessible for a diverse range of recreational activities and famous cafes/bars/eateries.
Faultless connectivity with a 15-20 min drive to CBD, or a short ride to Dhoby Ghaut via Dakota MRT.
For cyclists and joggers, the park connector is linked to East Coast Beach, CBD and Gardens by the Bay.
Several amenities nearby like Goodman Arts Centre, Singapore Sports Hub & Katong Swimming Complex for arts and sports enthusiasts.
Several coffee shops/hawker centers in close proximity, including the famous Old Airport Road Food Center.
24 hours supermarket and several neighborhood shops with essential services close-by
Doorstep Mountbatten Community Club to be upgraded
Near Geylang for cultural offerings, among many other amenities, and the famous Geylang Serai Wet Market.
Several malls including City Plaza, KINEX (former 1KM), PLQ Mall are easily accessible
A range of childcare and kindergarten options and several schools in the area (Kwong Hwa, Chung Cheng High, Dunman High, Broadrick Secondary, Tanjong Katong Girls School)
Highly rent-able with rates going at $2,000 - $3,000/mth