While it’s not as extravagant as Geylang, many Singaporeans may also know that Desker Road is a red light district. But as areas like Bugis * and Keong Saik Road show, these places can clean up over time.
And if they do, those still clinging to their properties can see huge returns – for example, Bugis is now in a neighborhood that beats Orchard on a square foot basis, and Keong Saik is full of high-end boutique shops. Hotels.
Because of this, some forward-thinking investors have started exploring Desker Road and its shrinking red light areas.
Given the central location, do we see an investment that is worthwhile? Here’s a quick look at the numbers:
* The area where Bugis Junction and Bugis + are currently located was the heart of a red light district until the early 1980s.
Reputation aside, what is Desker Road’s real potential?
Desker Road is in the Rochor Planning Area and is in District 8 (this also includes Little India and Farrer Park). In relation to HDB cities, this will be placed within the central area.
This is how far Desker Road would be to some key locations:
- CBD (Raffles Place) – 5 miles, 10 min drive
- Orchard Road – 2.4 miles, 7 minute drive
- Suntec City – 3.4 km, 7 min.drive
- Changi Airport – 17.8 km, 16 min drive
- Tuas Port – 42.5 km, 41 min drive
- Paya Lebar Quarter – 3.5 miles, 9 min drive
- Mediapolis – 13.4 km, 14 min drive
- Mapletree Business City – 15 km, 16 min drive
- Tuas Checkpoint – 32.4 km, 26 min drive
- Woodlands Checkpoint – 17 miles, 34 minutes drive
- Jurong Cluster (JCube) – 20.4 km, 19 min drive
- Woodlands Cluster (Causeway Point) – 14 miles, 21 min drive
- HarbourFront Cluster (VivoCity) – 7 miles, 14 min drive
- Punggol Cluster (Waterway Point) – 17.6 km, 17 min drive
Some quick comparison points for price:
To help us understand the relative property values around Desker Road, here is a brief snapshot of the city / district as a whole:
For HDB-Immobilien, the average apartments in the central area are currently 616 psf:
For private unlanded property, the average prices for District 8 are 1,593 psf:
Next, we compare the prices of the red light area properties to see how they perform against the district / city average.
Note that the immediate areas around Desker and Rowell Road are primarily intended for commercial rather than residential use (this has also been the case with Geylang more recently).
For this reason, we have selected the residential properties closest to the red light district:
HDB properties near Desker Road
Most of the apartments near Desker Road are from the 1980s. Based on our reviews, the earliest HDB properties built around Desker Road were “88 units” in 1982. Unfortunately, we cannot locate any transactions or records with the original 88 units.
However, we determined that Rowell Court is the closest apartment to Desker Road today. This HDB development runs along Jalan Besar and Veerasamy Road and is only 500 meters or a six minute walk from Desker Road.
As is to be expected, the transaction volume for the area is low. However, within the year we found a few transactions:
(Note that there are only four and five room apartments for this development, and almost all transactions are four room units.)
| date | address | size | Price PSF | price | Completion date |
| Jan 2021 | 642 Rowell Road | 1,109 sq. Ft. | $ 536 | $ 595,000 | 1985 |
| November 2020 | 634 Veerasamy Road | 1,195 sq. Ft. | $ 490 | $ 586,000 | 1985 |
| October 2020 | 642 Rowell Road | 1,173 sq. Ft. | $ 463 | $ 544,000 | 1985 |
| October 2020 | 634 Veerasamy Road | 1,098 sq. Ft. | $ 455 | $ 500,000 | 1985 |
| August 2020 | 641 Rowell Road | 1,195 sq. Ft. | $ 490 | $ 586,000 | 1985 |
Private property near Desker Road
The following properties are among the closest to Desker Road:
- Jalan Besar Plaza (250 m)
- City Square Residences (300 meters)
- Soho 188 (450 meters)
- Somme Park (500 meters)
- 28 RC suites (750 m)
1. Jalan Besar Plaza
Location: 101 Kitchener Road
Lease: Ownership
Completion: 1980
Number of units: 44
There have been no transactions here for a while, but the very last transaction (April 2019) was 973 psf. It’s amazing that even in 2009 you could have bought a device here for just 289 psf.
2. Residences on the town square
Location: Kitchener Link
Lease: Ownership
Completion: 2009
Number of units: 910 units
Square Foot Research cites a price range of 1,387 to 1,835 psf, with an average of 1,612 psf.
So far there have been 753 profitable transactions and only 28 unprofitable.
3. Soho 188
Location: Street racetrack
Lease: Ownership
Completion: 2008
Number of units: 49
Square Foot Research cites a price range of 1,469 to 1,514 psf, with an average of 1,492 psf.
So far 51 profitable and 3 unprofitable transactions have been carried out.
4. Somme Park
Location: Somme Road
Lease: 99 years
Completion: 2012
Number of units: 30
There weren’t many transactions; The last one in January 2021 was unusually low at 969 psf. The two transactions in January 2020 are more precisely reflected at around 1,555 psf.
To date there have been 15 profitable and 5 unprofitable transactions.
5. 28 RC suites
Location: Race Track Lane
Lease: Ownership
Completion: 2016
Number of units: 45
The last transaction in February 2021 was 1,540 psf. So far there have been 0 profitable and 2 unprofitable transactions.
Important points for investors to consider
- Condominiums, often cheaper than the district average
- Low transaction volume makes the properties unpredictable
- Declining rent and prices make the HDB apartments a tough call
- More limited and reserved than Geylang
- Desker Road is the oldest and longest-lived red light district
1. Condominiums, the price of which is often below the district average
In addition to the central location, the many condominiums in the region are the other factor that will interest investors.
As you can see from the prices above, most units offer a cheaper option than other District 8 alternatives. While most of these condos are older, ownership status negates that somewhat. The bears mention that the only property priced above the district average – City Square Residences – is the closest to Farrer Park MRT station at 270 meters. It is also integrated with the City Square Mall.
In general, some of the condos closest to Desker Road / Rowell Road appear to be “discounted” possibly due to the red light stigma. Value can be found here as not every tenant is equally disturbed. However, being in stigmatized areas can lead to resale difficulties and lower profits.
Therefore, residential real estate here is more likely to appeal to landlords who are striving for cash flow positive assets or who emphasize rental yield / long-term investments over faster resale profits.
2. A low transaction volume makes the properties unpredictable
Residential properties near Desker Road are typically boutique developments (with the exception of City Square Residences with 910 units). This comes with a few challenges – low transaction volume can make pricing more volatile. See Parc Somme as an example above.
Smaller properties also tend to have higher maintenance costs, which could be exacerbated by the age of older developments.
ALSO READ: Top 5 Cheaper Areas for 5 Bedroom Apartments in Singapore
3. The expiry of leases and the prices still make HDB apartments a difficult task
The HDB apartments near Desker Road are cheaper than many apartments in the Central Area. They were built in the 1980s, and they also have the advantage of being quite large (for reference, the average 4-bedroom apartment is around 980 square feet today, as opposed to the 1,000-plus-square-foot monsters above).
We believe, however, that its appeal is primarily for homeowners who value space and want centrality without the fancy prices in Bishan and Queenstown.
There is limited appeal for investors or those seeking asset development. Most of these apartments are over 36 years old. After a further waiting period of five years (Minimum Occupation Period, MOP), the pool of potential buyers for resale will be small.
4. More restricted and reserved than Geylang
The red light streets of Desker Road aren’t as extensive as Geylang, which stretches across several Lorongs. Like Orchard Towers, it’s tightly confined to just a street or two. and even then, “the trade” is not carried over to the main street. It remains limited to alleys between the streets.
A realtor we spoke to, who wanted to remain anonymous, also suggested taking into account the “buffer zone” between the red light area and the residential properties. The rundown areas are surrounded by commercial stores and the like so they won’t be visible to most renters and homeowners.
Put simply, you probably won’t even accidentally see brothels.
5. Desker Road is the oldest and most long-lived red light district
This concerns speculation that Desker Road will be “cleared out” like Bugis. While it is entirely possible, we should remember that Desker Road is even in front of Geylang as a red light district. and it worked as such back to colonial times.
Many vice districts – from Bugis to Keong Saik – have been evacuated, but Desker Road remains. In the newspaper clip in the link above from the 1980s, there is even a government spokesman suggesting that there are no plans to clear the red light area.
Hence, a Bugis-like transformation can take longer than any of us suspect.
This article was first published in Stackedhomes.
