Jurong Lake District Master Developer Site Not Awarded 640 Psf Ppr Bid Deemed Too Low

Please revise the attached article, “Master Developer Site at Jurong Lake District Remains Unawarded According to URA Announcement on Sept 13th 2019″On September 13, 2019, the Urban Redevelopment Authority (URA) announced that the 6.5-hectare master developer site located at Jurong Lake District (JLD) had not been awarded. The site, which was put up for sale on June 22, 2023, was intended to be a catalyst for the next phase of development in JLD.The tender for the JLD site ended on March 26, 2024, with only one bid from a consortium of developers that submitted two concept proposals. The consortium was made up of five reputable developers, including CapitaLand Group, City Developments Ltd (CDL), Frasers Property, Mitsubishi Estate Co., and Mitsui Fudosan Co. Ltd. Each developer held a 25% stake in the consortium, except for Mitsubishi Estate and Mitsui Fudosan, which held a 12.5% stake each.According to URA, after evaluating the two concept proposals, one was shortlisted. However, despite this, the tender was not awarded as the shortlisted proposal was deemed to be too low at a price of $6,888.90 per square meter of gross floor area (GFA), which translates to $640 per square foot per plot ratio (psf ppr).Get the latest updates on available units and prices for Sora AdvertisementThe master developer site at JLD will now be placed on the Reserve List under the concept and price revenue tender approach, subject to a minimum price acceptable to the government. The JLD master developer site comprises three sites near the Jurong East MRT Interchange station and the upcoming J’den by CapitaLand Development, one of the joint bidders of the site (Photo: Samuel Isaac Chua/EdgeProp Singapore)”Not Surprised”The decision not to award the JLD master developer site comes as no surprise to industry experts. According to Wong Siew Ying, the Head of Research and Content at PropNex, this is due to the previous sale of two other white sites in Jurong East, which may have influenced developer bids. The Boon Lay Way (Westgate) site was awarded for $1,012 psf ppr in May 2011, while the Jurong Gateway Road (JEM) site was awarded for nearly $650 psf ppr in June 2010. Considering the recent trend in residential land tenders and pricing of other white sites in the area, the tendered price of $640 psf ppr would have been deemed low, she added.The 440-unit Sora has sold 24% of its units since its launch in July, with an average price of $2,161 psf (Photo: Samuel Isaac Chua/EdgeProp Singapore)Pricing in Uncertainty and RisksDevelopers may have been cautious in their bids due to the high financing costs, the large size of the development, and the current market sentiment. There were also potential risks involved in committing to a project that could take 10-15 years to complete, said Tricia Song, CBRE Head of Research for Southeast Asia. She added that there may be other costs associated with the master planning of the development, such as the implementation of district-level urban solutions like a district cooling system and pneumatic waste conveyancing system.Priced in these risks and uncertainties, the land price of $640 psf ppr is understandable, said Mark Yip, CEO of Huttons Asia. Additionally, the pandemic has affected the demand for office space, and the market is still in a period of adjustment. With a long gestation period to recoup the huge outlay, the risks involved in developing a 6.5-hectare site may have also influenced the low bid.”Medium-term Relief”According to CBRE’s Song, not awarding the site at JLD will provide “medium-term relief” for the islandwide office supply, as approximately 0.7 million square feet of potential JLD phase one office stock will be delayed beyond 2030. However, the impending supply will not disappear entirely, as the government remains committed to the development of JLD.The master developer site in JLD is estimated to yield over 1.6 million square feet of office space, 1,760 private residential units, and 807,300 square feet of complementary uses such as retail, hotel, or community facilities. Although the site will be developed over the next five to 10 years in response to market demand, the successful bidder was required to build at least 70,000 square meters (753,480 square feet) of office space and 600 private housing units in the first phase of development.Buyers interested in living in JLD can consider existing projects such as J’den, Sora, and The LakeGarden Residences, said Huttons’ Yip. J’den, with 368 units, sold about 88% of its units on launch day in November 2023. The project is now 93% sold, with prices averaging around $2,561 psf based on caveats lodged. Two other projects in the Yuan Ching Road area of JLD have also been launched. The 440-unit project, launched in July, has sold 24% of its units at an average price of $2,161 psf. The 306-unit The LakeGarden Residences, launched in August last year, is 57% sold, with an average price of $2,155 psf based on caveats lodged of latest figures. Ten Latest Transactions at J’denSource: EdgeProp BuddyTen Latest Transactions at The LakeGarden Residences Source: EdgeProp BuddyTen Latest Transactions at Sora Source: EdgeProp Buddy Check out the latest listings for properties in J’den, Sora, The LakeGarden Residences in the areaAsk BuddyProject summary for Sora condoCondo sale transactions in District 22View 2 bedroom floor plans for SoraPrice trend chart for The LakeGarden ResidencesCompare price trend of HDB vs Condo vs LandedProject summary for Sora condoCondo sale transactions in District 22View 2 bedroom floor plans for SoraPrice trend chart for The LakeGarden ResidencesCompare price trend of HDB vs Condo vs LandedRELATED NEWSJ’den: A new precedent for integrated living in the WestFormer Tang Dynasty City site in Jurong East earmarked for future homesFinal units for sale at CapitaLand’s J’den as transformation begins at Jurong Lake District

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