Once known as an industrial hub, Jurong is fast transforming into one for business and leisure, driving demand and prices of homes in the vicinity, including The Lakeshore.

Plans for the Jurong Lake District — which, at 360ha, is equivalent to the size of Marina Bay — comprises a commercial hub known as Jurong Gateway and a recreational-leisure hub known as Lakeside. It was unveiled by the URA in its Master Plan 2008. The transformation of the Jurong Lake District will play out over the next 10 to 15 years.

It is already taking place gradually. The former Jurong Entertainment Centre has been transformed into JCube, a new mall with an Olympic-size ice-skating rink that will open in 2012. A few streets away, the Ng Teng Fong Hospital and Jurong Community Hospital are expected to open in 2014 and 2015 respectively. Park connectors will also be built, linking Bukit Batok to Jurong East MRT station.

Offices, hotels and other mixed developments are also in the pipeline. A 1.8ha white site near the Jurong East MRT station was launched for sale this month, following the sale of an adjacent 1.9ha white site at Jurong Gateway Road to Australia’s Lend Lease Retail Investments for $748.9 million last year. Already, the Ministry of National Development, the Agri-Food & Veterinary Authority, and the Building and Construction Authority have announced that they will be moving into the Jurong development by Lend Lease by 2015, to encourage the development of the suburban hub.

The makeover of Jurong has seen prices of new condominiums in the area setting new benchmarks. At The Lakefront Residences by Keppel Land, a 495 sq ft unit on the 16th floor was sold for $676,000, or a high of $1,365 psf, in January. The 629-unit, 99-year leasehold residential development was launched for sale last November and is expected to be completed in 2015. As at end-February, 515 of the 591 units launched had been sold, at a median price of $1,053 psf.

Lakefront Residences is just a short walk to the Lakeside MRT Station. Adjacent to the development Frasers Centrepoint’s 712-unit Caspian, which is fully sold. The latest transaction lodged with URA Realis was for a 936 sq ft unit on the sixth floor, which changed hands in a sub-sale at $830,000 ($886 psf) on Feb 11. The high of $1,102 psf was hit last August when a 463 sq ft unit on the fourth floor changed hands in a sub-sale for $510,000. Caspian is expected to be completed by 2013.

With new projects fetching more than $1,000 psf, older developments in the vicinity, such as the fouryear old The Lakeshore, along Jurong West Street, are playing catch-up. The 848-unit, 99-year leasehold The Lakeshore is located diagonally across from the Lakeside MRT Station and opposite Jurong Lake. The Lakeshore was developed by Far East Organization and is a short drive to the Jurong West Market and Food Centre and Jurong Point shopping mall.

Prices at the condo have more than doubled since the launch in 2003, hitting a peak of $1,127 psf in January, when a 1,108 sq ft unit on the 14th floor was sold for $1.25 million. From March 1 to 8, there were three resale transactions at The Lakeshore, with prices ranging from $921 to $1,006 psf.

A 1,270 sq ft unit on the first floor was sold for $1.17 million ($921 psf) — a 20% gain for the seller, who purchased the unit for $976,080 ($768 psf) in July 2007.

A 1,162 sq ft unit on the 17th floor was sold for $1.17 million ($1,006 psf), translating into a 28% gain for the seller, who purchased it for $914,490 ($787 psf) in Oct 2008.

Another 1,162 sq ft unit, on the 11th floor, was sold for $1.15 million ($989 psf), representing a 31% gain for the seller, who bought the unit for $880,000 ($757 psf) in November 2008.

Bernard Hoo, an agent with Global Real Estate (Asia), who is marketing a three-bedroom unit at $1,173 psf, notes that genuine buyers are holding out for lower prices, while investors who are able to secure tenants may be willing to offer a better price.

Source : The Edge – 28 Mar 2011