The Preliminary Impact of Not Awarding the Jurong Lake District Tender
When news broke of a consortium of five prominent real estate developers bidding for the master developer site in Jurong Lake District, it generated significant interest in the area. The 6.5-hectare Government Land Sales "white site," comprising three plots, was set to become Singapore’s largest business district outside the city centre.
The project, which was to be developed over 10 to 15 years, would include at least 1.5 million square feet of office space, up to 1,700 residential units, and nearly 800,000 square feet for other mixed-use developments. The consortium, consisting of CapitaLand Development, City Developments, Frasers Property, Mitsubishi Estate, and Mitsui Fudosan (Asia), submitted two bids with distinct concept proposals.
This site was widely expected to spearhead the government’s ambitious vision of creating Singapore’s second Central Business District. However, the tender was ultimately not awarded, as the bid price of S$6,888.90 per square metre of gross floor area was deemed too low.
With the tender unawarded, what has been the market reaction, particularly in the residential and office rental sectors? Using proprietary data from DataSense, we examine how search behaviour has shifted.
Impact towards Property Demand in District 22 & Jurong East
The Demand Index for non-landed private residential properties, which reflects weighted visitor traffic to property listings, saw a slight dip of 1.2% from August 2024 (Figure 1). However, it is too early to directly attribute this decline to the rejected bids. The overall Demand Index for non-landed private residential properties across Singapore also dropped by 1.0% month-on-month.
Figure 1: Supply and Demand Index Trend for Non-Landed Private Residential Properties in District 22 (Boon Lay/ Jurong/ Tuas)
This similar scale of decline suggests that the localised impact of the tender outcome on Jurong's non-landed residential demand is likely minimal.
Interestingly, the Demand Index for HDB apartments in Jurong East was not negatively impacted (Figure 2). In fact, it recorded a month-on-month growth of 12.1%, outpacing the 8.2% increase observed across all HDB apartments in Singapore.
Figure 2: Supply and Demand Index Trend for HDB apartments in Jurong East District
This resilience in residential demand in Jurong and Jurong East, despite the tender outcome, likely reflects continued confidence in the government's commitment to the area. In a statement, the Urban Redevelopment Authority (URA) reiterated its dedication to transforming the Jurong Lake District (JLD) into a model for sustainable development, blending business, residential, and recreational spaces outside the city centre. While the specific form of development may evolve to align with market conditions, the government's vision for JLD remains steadfast.
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