Property owners in the Jurong Lake District are rejoicing following the announcement that Singapore’s high speed rail terminus will be located in Jurong East, media reports said.
Consultants expect the new terminus to spur property prices and stimulate retail and commercial activity in the vicinity.
In fact, they noted that the district is well set up to take advantage of the boost.
Jurong East is the interchange of major MRT lines, the east-west, north-south and upcoming Jurong Region Line, making it convenient for commuters, noted Desmond Sim, CBRE head of research for Singapore and South-east Asia.
The area is also a rich hunting ground for business space.
Jurong Gateway, which offers 500,000 sqm of offices, 250,000 sqm of retail, food and beverage and entertainment space and 2,800 hotel rooms, will become “the most ideal suburban location for company headquarters, business services, education and science and technology sectors,” said Cushman & Wakefield research director Christine Li.
New entrants could include businesses in Malaysia, especially companies from areas such as Malacca, Nusajaya and Batu Pahat – stops on the high speed rail line.
Meanwhile, retailers noted that the Jurong area is poised to attract a “larger catchment of shoppers and office workers with new developments including the high-speed rail terminal”, said Jenny Khoo, general manager of mixed-use development Jem.
A Mapletree Industrial Trust official expects higher demand for space at its two buildings once the rail line is ready.
MCL Land, which is currently developing Lakeville in Jurong West Street 41, was awarded a nearby condominium site in March.
Chief executive Koh Teck Chuan expects the two projects to attract more foreign buyers given the area’s greater accessibility and vibrancy.
In Q1 2015, prices of non-landed property in Jurong fell eight percent from the previous quarter to $947.15 psf on average due to the government’s cooling measures. However, average non-landed rents increased six percent over the same period to $3.30 psf per month, revealed PropNex Realty chief executive Mohamed Ismail.
“Property prices in this developing region are expected to slowly appreciate over the next decade,” he added.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org