The Jurong Lake District – A Jewel or the Next Punggol 21?

By Paul Ho (guest contributor)

The Punggol 21 Masterplan was rolled out twenty years ago amidst much fanfare and high expectations. Twenty years on, the Punggol 21 Masterplan remains largely unfulfilled. The Jurong Lake District idea was mooted around 2008 as part of the Masterplan, but did not garner much confidence due to the failure of Punggol 21 (those people staying in Punggol East can testify to the lack of amenities).

Apart from that, people who have witnessed the natural beauty of the British Lake District will find our Jurong Lake District a far cry from it. I thus initially dismissed the Jurong Lake District Masterplan. However, fast-forward to 2014, and various developments have mushroomed around the Jurong Gateway.

Making up for a lack of natural beauty

Whatever Singapore lacks in natural beauty, it has a way of making up for with beautifully-landscaped gardens and a wide range of amenities. The Urban Redevelopment Authority (URA) has delivered excellent town planning that is purposeful and elegant.

(Source: Jurong Lake District brochure, URA)

Developments around Jurong East MRT have started to take shape, anchored by the Jurong East MRT interchange, established businesses around the International Business Park, major shopping malls, a hospital, education hub, high-rise offices and residential units.

The Jurong Lake district is not exactly a green field site as there are many developments already in place. As such, the effort required to realize this Masterplan may be smaller than that for Punggol 21 – thus it is less likely to fail.

Upcoming developments in the Jurong Lake District

According to the Masterplan, these are the developments planned for the Jurong area:

1. New Infrastructure such as a new bus interchange, road network and upgrading of Jurong East MRT Station

2. 1.9 ha White site next to Jurong East MRT Station available for application in the Government Land Sales Reserve List

3. Big Box Warehouse Retail Outlet (34,000 sqm of new retail space)

4. Jurong Entertainment Centre redevelopment (28,000 sqm of retail space and an Olympic-size ice skating rink)

5. New Jurong General Hospital and Community Hospital (the integrated hospital will serve residents staying in the west region)

Most of these developments are centered around Jurong Gateway, the crown jewel of the Jurong Lake District. With a catchment consumer base of Jurong East HDB dwellers, the Lakeside village (a designated F&B hub) is likely to be developed fast and find success. The Lakeside village is connected via bridges to the Japanese Garden and Chinese Garden, bringing lakeside enjoyment to residents staying nearby.

Developments along Yuan Ching Road have yet to materialize. We estimate that the Jurong Lake District could become a reality in 5 to 7 years. Once this area develops to include waterfront hotels, it could revitalize the Jurong area.

Hotspots in the Jurong Lake District

Ironically, the crown jewel of the Jurong Lake District – the Jurong Gateway – is not anywhere along the lake. The Jurong Gateway is anchored by Jurong East MRT station, and is a major MRT hub in the vicinity of a newly-built hospital, new residential units, and the International Business Park which houses many multi-national companies. Properties located near the Jurong Gateway will thus be sought after.

Jurong Gateway condominiums have transacted above $1700 psf for smaller sized units. Some businesses may relocate to so as to better manage their operations in Tuas or in Johor/Iskandar. The Jurong Gateway is likely to develop into the “Orchard Road” of the West.

By contrast, developments along Yuan Ching Road are largely incomplete. The area will be revitalized when the lakefront hotels as well as edutainment clusters are completed. The prime locations in Yuan Ching Road will be around Lakeside MRT station, which are already being priced in the $1,300 to $1,500 psf range based on Lakefront Residences’ figures.

Other areas of Yuan Ching Road will be more residential and therefore quieter. These residences will be further from the MRT and will likely be priced lower than those nearer to Lakeside MRT.

Some HDB flats around Ho Ching road were built in 1972 and are 42 years old. They are ripe for selective en-bloc redevelopment (whether residents like it or not). As land becomes premium along Yuan Ching, Ho Ching, Tah Ching and Kang Ching roads, these HDB units may consequently become targets for redevelopment.

More residential development to come around the lake

We expect that premium residential housing in the Jurong vicinity will be around Jurong East MRT (Jurong Gateway) or Yuan Ching road. Just like Bedok Reservoir, more condominium clusters may form around the lake. If selective en-bloc development takes place, it is likely that premium housing will be introduced in its place to capture maximum land revenue for the government. As the Jurong Gateway economic cluster and Tuas relocation of factories take shape, more people may opt to stay in and around Yuan Ching Road, given the limited supply of condominiums around Jurong Gateway.

Yuan Ching Road residences are connected by bridges to the Japanese and Chinese Gardens. If cycling is allowed in the gardens, one can cycle to work in the Jurong Gateway from Yuan Ching Road in 15 minutes. Given the beautiful lake with bridges to walk through, the distance from Jurong East MRT to Yuan Ching could easily become an enjoyable 15 to 30 minutes walk home, thereby raising the value of housing along Yuan Ching Road. Thus we expect the housing around Yuan Ching Road to narrow the gap with those in the Jurong Gateway.

Some potential downsides

Most properties (if not all) in the area are 99 years leasehold. All things being equal, we do not like leasehold properties. Not having a choice for 999 and Freehold titles is a major downside especially in newly-developed estates.

Also, pricing will be capped and compared against more established areas or regional centers such as Orchard Road.

Furthermore, Jurong is an industrial hub with factories in Tuas and a catchment workforce of 100,000 people. Being more industrial in nature and surrounded by historically-cheaper HDB housing, Jurong is perceived to be more working-class and blue-collar. It will take time to change this perception. Capital upside may be limited for buyers if developers get greedy and price new developments too high.

Conclusion

The Jurong Lake District is an up and coming district which looks very likely to be realized in 5 to 7 years in its entirety. It will also be the most well-connected recreational, business, edutainment, education and medical centre in the West zone.

By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com*, Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers.
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