Jurong Lake Gardens to be sold to a master developer

In the Jurong Lake District (JLD) Singapore’s biggest business district that is not in the city center A 6.8 acres white site is scheduled to be released to an owner developer. It comprises three parcels of land connecting with the Jurong East MRT interchange station with the planned Jurong Lake District Station on the Cross Island Line.

Grand Dunman sales gallery to house 1,040 residential units and a maximum building height of about 64 metres Singapore height datum.

“The idea is to have an individual developer to masterplan the site and implement city-level, district-wide urban strategies (such as district cooling systems) that are integrated into the mixed-use development,” according to URA.

The white site located in Jurong Lake District can yield more than 1.6 million square feet of office space and 1,760 residential units for private use and 807,300 square feet total gross floor space (GFA) of other uses like the hotel, retail, or community use.

“The current GLS program saw the government increase the supply of office space substantially, the highest increase since 2016 and the biggest in the decentralised area,” says Tricia Song the head of research at CBRE Southeast Asia.

Recent greenfield sites with large office component that were sold through GLS were located in the CBD in CBRE’s Song: Guoco Midtown site that was sold on October 17, 2017 for $1.622 billion, or S$1,706 for plots (psf ppr) and yielding more than 700,000 square feet of office space. Also, that of the IOI Central Boulevard Tower site that was sold in Nov . 16, 2016 for $2.569 billion, or $1,689 psf per plot ratio, which yields 1.26 million square feet in office spaces.

The planned mixed-use development is planned to be gradually built within the next 5-10 years in order to satisfy market demands. But, the winner is required to construct at least 70,000 square meters (753,480 sq feet) GFA of office space and 600 housing units for private residents in the initial phase of development, but can choose to gradually reduce the remaining units depending on the market demand.

“The white site located in JLD is expected to act as a catalyst to the next phase of development within the precinct and actually for Singapore in that it will spur new economic activity and brings additional homes and jobs to the region,” says Ismail Gafoor the PropNex’s CEO. PropNex. “The government has decided to go with the master developer method to develop the site. We believe this could be a tender with two envelopes that will include design and concept as well as the cost of the bid to be utilized in the sale.”

The 600 residents in the first phase this integrated project will have close proximity to amenities such as shopping malls and a library for the region, Jurong East MRT interchange station and bus interchange as with attractions like Jurong Lake Gardens, the new Science Centre and other new tourism developments, says Leonard Tay, head of research at Knight Frank Singapore.

JLD currently has substantial amount of office, retail and residential developments that have been built since 2008. “By 2028, a brand new Jurong Region Line station and an Integrated Transport Hub comprising offices as well as community spaces, retail and other facilities will be constructed close to an MRT station for Jurong East” CBRE’s Song. “JLD is expected to be a leading sustainability district, with zero emissions for all new developments in the year 2045.”

The size of the project will result in that the land costs would exceed $2 billion, or at most $1300 per square foot, according to Song. Based on the anticipated launch date in June of 2023 in GLS and an assumption of that there is a three to six-month duration for the tender, most likely time to complete office space is likely to be in 2028.

“With the current focus on office decentralisation, there is likely to be a shortage of greenfield office sites within the CBD accessible through GLS. GLS soon,” says Song. “Going ahead the CBD will undergo a rejuvenation thanks to old office buildings being transformed as mixed-use projects.”

Apart from JLD The other white site listed on the 1H2023 Confirmed List is located at Marina Gardens Crescent in Marina South close to Gardens by the Bay. The site located at Marina Gardens Crescent is adjacent to that at Marina Gardens Lane launched for sale on December 5 under the 2H2022 GLS program.

It is believed that the Marina Gardens Crescent site can be constructed up to 775 housing units, with the retail component being limited to 6000 sq m (64,584 sq feet). “We anticipate that this site to be influenced from the responses to the previous site which will be closed for tender on June 27, 2023.” CBRE’s Song.