Review: 54 Lorong 36 Geylang
This is a review on 54 Lorong 36 Geylang which is currently marketed by Estate Magnates. This is to provide potential buyers with a more in-depth view of the property and have all the details needed to make a well-informed decision. The full listing can be found here on PropertyGuru. Should you require more information, feel free to write to firstname.lastname@example.org or contact Joshua Loo at +6596329840!
This review is written based on permission given by the seller and I will be serving his interest as I am representing him in this sale transaction.
The Geylang area is known to be a foodie’s heaven with an endless array of variety to choose from. Some of these known eateries are Sean Kee Duck Rice, No Signboard Seafood Restaurant, and many others.
However, how do residential properties within Geylang? I wish to clear the misrepresentation of this area and to uncover the true gem that it is. Let’s take a closer look in regards to one of the last few residential terraces.
Why You Should Consider Buying This Property
The asking price for 54 Lorong 36 Geylang is $3.75m negotiable, ($2,265 PSF). At first glance, it might seem to be that 54 Lorong 36 Geylang is way overpriced. However, do consider that the average rebuilding project usually costs upwards of $240 PSF Cross Floor Area (CFA) for terrace houses, which means for a buildup of 5,000 sqft, it will cost real estate developers ($240*5,000) $1.2m to rebuild this project!
As the average of past two transactions in 2020 lies at $1,569 PSF, the cost of a land area of 1,655 sqft, will have a cost of ($1,569*1655) $2.596m. Add the cost to have a buildup of $1.2m, and the total project will cost $3.796m ($2,294 PSF).
Therefore, the cost of an average rebuild is close to the price of this new development!
However, this is not the most efficient way to analyze the price of a good property, as the average costs are dependent on the low volume of transactions. However, we do believe that this is a good deal simply because we have not considered the profits of the real estate developer.
I’ve covered in my review of 38 Jalan Kembangan that the estimated profits of a real estate developer lie around 10-15% of every project. It might seem that the real estate developer might not be making any money on this transaction, but there are three possible scenarios.
Builders are charging the developers at an attractive price
Real estate developers have bought an undervalued piece of land
Real estate developers bought a bad deal
Option 3 is definitely unlikely, and the other two options are more realistic.
In addition, take a look at the trend line for Geylang Conservation Area properties, which moves closely in tight tandem with other residing residential clusters. This makes it a stable, appreciating purchase.
My conclusion on price is that this is a good deal on a recently rebuild, terrace home. There might be other good deals on the market such as a bigger land size for less, but finding a property with similar technical specifications will definitely be more expensive if you were to include rebuilding costs.
Buying a residential property for its en-bloc potential might be a marketing buzzword for older, dilapidated condos, which unfortunately some investors will fall for.
I have covered this topic on an article “affectionately” titled “Stop Holding on to Your En-Bloc Property!” (laughs). In short, I feel that purchasing such properties can be a costly mistake.
However, 54 Lorong 36 Geylang might just be one such property that goes against the grain and lives up to this actual term. Have a look at the following images.
54 Lorong 36 Geylang is situated southeast of Geylang road, where a number of terrace houses are still located at. Take note that this is typically dominated by small bedroom condos that boutique developers are always constantly providing as it is always cheaper to acquire.
From the street, a line of single floor residential terrace houses can be seen in the midground. This line of residential terraces can very well be the last bastion of landed houses along Geylang Road.
From the control plans, the commercial shophouses lining Geylang Road have a conserved status, which means that the external façade and built up is strictly not meant to be changed. The blue blip represents 54 Lorong 36 Geylang.
After all that’s being said, the land area for these line of terrace houses might not be large enough to rebuild a stack of strata-title apartments, but will still hold its weight for landed property lovers who can understand its potential.
There is a dizzying selection of eateries along Geylang Road, and I’m sure you will be confused about what to eat on most days!
Sean Kee Duck Rice
No Signboard Seafood Restaurant
G7 Sin Ma Live Seafood & G7 Frog Porridge
Geylang Lorong 9 Beef Kway Teow
Tan Ser Seng Herbs Restaurant
The number of eateries is too much that I am unable to list them all down.
On a non-related note, with the current coronavirus situation, many local restauranteurs are having difficulty in sustaining their current business operations. Please support these eateries so that they are able to thrive for many more years to come!
What is there not to enjoy about this view! The Geylang River is located just outside this landed property It helps to break up the monotony of living in a concrete jungle!
Accessibility was quite hard to decide on as central Singapore is easily accessible through Guillemard Road and Geylang Road. Both which also links to other bigger road networks. In regards to public transportation, I’ll have to set this point under a drawback because most properties are within a 10-minute walk to an MRT station. Whereas this is almost an 11 minutes’ walk (850m) which is unsheltered.
It might seem that I am nitpicking, but public transportation in Singapore is extremely well developed and this makes this one point stick out like a sore thumb.
The building works are still not completed, so do take this point with a grain of salt.
From first glance, the building façade which is ultimately very similar to other landed developments which the real estate developers have previously released. It does not suit my personal tastes.
However, the internal layout shows that space is very well utilized.
Mortgage Repayment Numbers
If you are intending to proceed with a 75% loan amount (S$2,812,500), with a tenure of 30 years and an interest rate of 1.5% (i.e. because of the current COVID-19 situation, banks are offering a much lower rate at the moment.
The estimated monthly repayment cost will be S$9,707/month.
· Competitive Pricing
· En-Bloc Potential
· Foodies Paradise
· Geylang River
· Accessibility Options
· Uninspired Design
Not many people are aware that along Geylang road, other than commercial shophouses and condos with small apartments, there are actually landed residential properties in the area.
54 Lorong 36 Geylang is a fantastic purchase as the asking price for this terrace home is also at a fair price of $3.75 mil (Negotiable). Dwindling supply of landed properties here will also make for a steadily appreciating purchase.
You will be spoilt for food choices as there are plenty to pick from and it is closely located to both Guillemard Road and Geylang Road, which makes it highly accessible if you do drive.
Public transportation leaves more to be desired, but by no means is insufficient.
The façade that the developers have chosen is very similar to others in their portfolio and might be a reason for you to stay away if it really grinds your gears.
If you are a buyer of a co-broke agent that is interested in this property, feel free to contact me at +6596329840 or Joshua.email@example.com I will provide for you a full breakdown into the property.
Are you interested in rebuilding a property in the future and will require further assistance? I work with trusted partners in the construction industry to realize your dream home. If you are interested to learn more, let me invite you to coffee!
I’ll share with you a list of preferred sites for your rebuilding project, along with known experts in the rebuilding industry to push forward your ideas into reality.
The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual. The author does not accept any responsibility whatsoever for any harm or loss arising from accessing or relying on information contained in this blog post.