Press Release
23 Jun 2023
FOR IMMEDIATE RELEASE
Singapore, 23 Jun 2023 – The government has just launched the tender for the site at Jurong Lake District.
https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr23-19
The Urban Redevelopment Authority (URA) has launched a Master Developer site at Jurong Lake District (JLD) for sale by public tender today under the Confirmed List of the first half 2023 (1H2023) Government Land Sales (GLS) Programme.This is a huge white site spanning 6.5ha. The Master Developer will have to use district-level urban solutions integrated within the entire mixed-use development. The site comprises three different plots of land that link the existing commercial centre at Jurong East MRT interchange station to the new precinct and the future Jurong Lake District station of the Cross Island Line, and is required to have office space as well as residential units.
The first phase of the development will comprise at least 70,000 sqm GFA of office space and 600 private housing units. Eventually, there may be around 146,000 sqm of office space, 1,700 private residential units, and 73,000 sqm GFA of complementary uses to be developed over the next 10 to 15 years, according to information obtained from the URA press release.
Developers will likely have to form consortiums in order to bid for a land acquisition of this size. The massive scale of such a project will likely require major developer consortiums with deeper pockets, and also require a longer period of investment, in this case possibly over a decade to fully develop the 3 plots. However, the longer development timeline can smoothen out shorter term economic fluctuations.
The future residential project will likely be attractive, especially since the government is developing Jurong Lake District to be a second CBD. There are few new launches in Jurong East, with J’den (the former JCube) being the only upcoming launch in the area. Given the flexibility of phasing the development over time and the lack of exciting new happenings in the west in recent times, we could possibly see 3 to 5 bidders. We estimate that the selling price of the residential component of the development could be between S$2,400 to S$2,600 psf.