Goodbye JCube: New 40-storey project to boost housing supply in Jurong Lake District

In August, JCUBE, a leisure and edutainment mall situated in Jurong East, will cease operations to pave the way for a new 40-storey residential and commercial complex. This transformation follows the receipt of provisional permission from Singapore’s Urban Redevelopment Authority by CapitaLand Development (CLD), the development division of the CapitaLand Group, as announced on February 7.

Observers are approximating a price range of S$2,000 to S$2,100 per square foot (psf) for the residential units within the forthcoming development. These units will be accompanied by commercial spaces on the first and second floors. The project’s completion is scheduled for 2027.

The development will be seamlessly linked to the Jurong East MRT interchange, Westgate, and IMM Building via the J-Walk, an elevated covered pedestrian network within the Jurong Lake District (JLD). Furthermore, it will eventually connect to the upcoming Jurong East Integrated Transport Hub, which will feature a bus interchange, public library, community club, sports center, and other amenities.

Chief Executive Tan Yew Chin has indicated that CLD anticipates launching the new development for sale in the latter half of 2023. Precise details regarding pricing, unit count, and sizes have yet to be unveiled.

JCube, located at 2 Jurong East Central 1, is across the road from Jurong East MRT interchange station and bus interchange

The redevelopment plan for JCube aligns with the Singapore government’s broader strategy of introducing new residential properties, businesses, recreational options, and amenities to the Jurong Lake District (JLD), as highlighted by CapitaLand Development (CLD).

Anticipation is growing around potential residential launches in the vicinity, particularly involving a sizable 6.8-hectare white site included in the first half of the 2023 government land sales program. This site, consisting of three plots, will be acquired by a master developer who will construct up to 375,000 square meters of gross floor area (GFA) over the next five to ten years. This expansive development will encompass 1,760 private residences, 150,000 square meters of office space, and 75,000 square meters for supplementary purposes such as retail, hotels, or community facilities.

Recent property transactions further contribute to the changing landscape. Wing Tai Holdings’ subsidiary purchased Lakeside Apartments for S$273.9 million, with intentions to develop it into a complex with over 300 units. Likewise, Chip Eng Seng, KSH Holdings, and SingHaiyi obtained Park View Mansions for S$260 million, aiming to redevelop the site into a project with up to 440 residential units.

These upcoming projects, coupled with the new JCube development, are expected to alleviate the pent-up demand for housing in Jurong, addressing the shortage of new condo launches in recent years.

Christine Sun, Senior Vice-President of Research and Analytics at OrangeTee & Tie, anticipates that residential properties in the Jurong Lake District will hold long-term appeal, thanks to their strategic location in areas earmarked for substantial infrastructure growth.

The potential influx of new developments is predicted to boost home prices in the resale market and potentially impact neighboring areas like Bukit Batok and Clementi.

Property experts suggest that the new JCube residential project could have an average selling price of S$2,100 per square foot (psf) and upward. Desmond Sim, Chief Executive of Edmund Tie, notes that the demand for affordable suburban housing remains relevant, particularly in the sweet spot of S$2,000 to S$2,100 psf, which appeals to Housing and Development Board flat upgraders.

Sim and others highlight the prime and well-connected location of the site as a driving factor in CLD’s decision to change its use.

With its proximity to an MRT station and abundant amenities, a mixed development like the one planned for JCube is likely to command a price premium.

Recent transactions at nearby J Gateway indicate that prices per square foot have remained relatively steady, with slight fluctuations since the start of 2022.

JCube, which opened in 2012, boasts approximately 316,741 square feet of gross floor area and about 210,038 square feet of net lettable area. The mall has 115 tenants and an occupancy rate of around 95.5% as of December 31, 2021.

CapitaLand Integrated Commercial Trust’s manager announced in January of last year that it would divest the shopping mall to CLD for S$340 million. The mall’s final day of operations is set for August 6.

(source: www.businesstimes.com.sg)

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