But analysts do not see much enthusiasm for mixed development plot
Jessica Cheam, Straits Times 29 Nov 08;
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.'
Jurong Lake revamp on the cards, but is the price right?
Cheow Xin Yi, Today Online 29 Nov 08;
SINCE it first unveiled ambitious plans in April to transform sleepy Jurong over the next decade, the :Urban Redevelopment Authority (URA) has rolled out the area’s first land parcel: A site for mixed development in the Jurong Lake District.
The 1.9-hectare site, located beside the Jurong East train station, has a 99-year leasehold and a maximum gross floor area of about 1.15 million square feet (107,000 square metres).
At least 30 per cent of the area must be designated for office use, while the rest can be used for office, commercial, or residential purposes.
“The proposed development of this site will act as a catalyst to kick-start the growth of the Jurong Lake district into a vibrant, attractive commercial lifestyle hub of the western part of Singapore,” the URA said on Friday.
The site is on the reserve list, meaning it will be open for tender only ifdevelopers indicate a minimum bid price that is acceptable to the Government.
Property analysts praised the site for its location, but said that land parcels right now might not draw keen interest, given the weak market conditions.
:Chesterton Suntec International research head Colin Tan said some developers might find it a “waste of time” to prepare bids, as the URA has recently found price indications for at least three earlier tenders too low.
“Given the official view that the Singapore will be in a ‘long and deep’ recession, I feel that the URA should expect bids that reflect the economic realities of the time and be prepared to accept quite low bids,” said Mr Tan.
But DTZ’s regional head of research Ong Choon Fah said the reserve price — determined by the Chief Valuer — must be “reasonable” in land-scarce Singapore.
Developers “with foresight” may jump in to buy the Jurong Lake site at prices that are “not heavily competed”, said Knight Frank’s deputy-managing director Danny Yeo. Those with strong financial positions could even join forces, he added.
The successful buyer will work with a URA-chaired panel to design the development, which must be completed within 8-and-a-half years upon tender.
Jurong East 'white' site joins reserve list
But market watchers say that like the Bukit Chermin site, it is not likely to be triggered anytime soon
Kalpana Rashiwala, Business Times 29 Nov 08;
FOR the second day running, the Urban Redevelopment Authority has made available for application a reserve list site in an attractive location, despite the inopportune timing.
Its latest offering is a 1.9-hectare 'white' site next to Jurong East MRT Station. At least 30 per cent of the 1.15 million square foot maximum gross floor area must be set aside for office use and the rest for additional office use or other uses permitted under the white site zoning such as commercial (like retail and entertainment), hotel and residential uses.
The 99-year leasehold plot is the first sale site being offered in URA's Jurong Gateway precinct since Singapore's planning authority unveiled plans for the Jurong Lake District earlier this year.
On Thursday, URA went ahead with the scheduled release of a plum hotel site at Bukit Chermin on hilly terrain overlooking the coastline.
Market watchers yesterday gave the Jurong East site the same verdict that they did for the Bukit Chermin site - it's not likely to be triggered anytime soon.
'Given the current uncertain business environment, it's unlikely there will be any interest in the Jurong East site. There's also difficulty in getting funding. Investors would rather go for completed, income-generating assets that can give immediate returns than to embark on a fresh development with higher risks,' DTZ executive director Ong Choon Fah said.
Market watchers also note that substantial office supply is expected to be completed from 2010.
Colliers International director Tay Huey Ying: 'It's unlikely the Jurong East site will be triggered for launch until the market picks up significantly. The land parcel is quite attractively located next to an MRT station and in an area within a growth centre.'
URA said: 'Given its strategic location, it is vital that the proposed development on the first sale site in Jurong Gateway is a well-designed landmark development with appropriate quality.
'Hence, the design of the proposed development will be reviewed by a Design Advisory Panel (DAP), chaired by URA.
'The DAP will work with and guide the development team in the design of the development after the tender has been awarded.'
Reserve list sites are launched for tender only upon successful application by a developer with an undertaking of a minimum bid acceptable to the state.
The tender for the Jurong East site will be awarded on the basis of land price.
