Source : Straits Times - 29 Nov 2008
But analysts do not see much enthusiasm for mixed development plot
THE planned transformation of Jurong into Singapore’s Lake District was set in motion yesterday as the Government released sales details of its first site for tender.
However, market analysts say the current economic downturn and weak property market mean the site could receive a lukewarm reception at best.
Up for grabs is a 1.9ha ‘white’ or mixed development site, attractively located next to the Jurong East MRT Station, with 30per cent of gross floor area (GFA) set aside for office use.
The rest of the maximum GFA of about 1.15millionsqft is for commercial, hotel or residential use, said the Urban Redevelopment Authority (URA) yesterday.
This plum 99-year 19,124sq m site is the first in a series of developments in a grand masterplan unveiled for Jurong in April by National Development Minister Mah Bow Tan.
The proposed dramatic makeover is set to help Jurong shed its industrial image and morph into Jurong Lake District - a mini metropolis of homes, hotels, shops, eateries and offices linked to the MRT via walkways and waterways.
The 360ha district is the size of Marina Bay and consists of two precincts. The first is the 70ha Jurong Gateway, with new offices and entertainment spots set around the Jurong East MRT station.
The second is Lakeside, which is being developed as a destination for young families, with tourist attractions and parks complemented by water activities, set around the Chinese Garden and Lakeside MRT stations.
The URA said yesterday that developers interested in the white site can now apply for it, but property experts say response is likely to be muted, given the economic conditions.
Savills Singapore director of marketing and business development Ku Swee Yong feels that tendering for the site now ‘is a waste of time at this moment’.
‘In today’s market, frankly, it’s not about the attractiveness of a site any more. It’s about whether credit is available.’
Developers are likely to be cautious, and if infrastructure works by the Government for Jurong, such as upgrading the lakes or waterways is delayed, the pace of remaking the area might slow down, leaving little incentive for developers, he added.
When contacted, URA said the plan for Jurong Lake District ‘will still proceed as planned’.
Various infrastructure works such as roads and utilities to support the growth of the area will be implemented.
However, the actual pace of development will depend on market demand, it added.
Still, DTZ executive director Ong Choon Fah said the site is unlikely to be triggered for tender until the outlook becomes clearer, and bank credit is more available. ‘Developers are likely to look at income-generating assets, instead of going into a development situation.’
Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan, said the site was not likely to attract any bids at this time, which is a pity as it is a ‘good and attractive’ site.
From a long-term perspective, the site is a prime one which major developers such as CapitaLand and City Developments will be eyeing, he added.
DTZ’s Mrs Ong said it would not be surprising if Jurong Lake District’s development now had to take a back seat.
But she added: ‘Economic cyclones will always exist, but we must not lose sight of the vision for that area for the long term.’
CREDIT MATTERS, NOT ATTRACTIVENESS
‘In today’s market, frankly, it’s not about the attractiveness of a site any more. It’s about whether credit is available.’ - Savills Singapore director of marketing and business development Ku Swee Yong
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