The Land Transport Authority has obtained provisional permission to develop office and retail space as part of the Jurong East integrated transport hub (ITH), BT understands.
The Urban Redevelopment Authority granted provisional permission to LTA in November last year to develop 436,369 sq ft gross floor area (GFA) of office space and 54,788 sq ft of retail space. The office and retail space will be seamlessly connected to the Jurong East MRT station and Jurong Bus Interchange.
Tricia Song, Head of Research:
This ITH adds onto the planned second Central Business District at the Jurong Lake District. The office component could be taken up by consolidating LTA and Ministry of Transport’s operations which are currently spread across PSA Building at Alexandra, Little India, Sin Ming Drive and Chai Chee Street. The retail space is relatively small and should not pose too much competition to the already robust retail mall scene in Jurong East. To date, 10 such integrated transport hubs (ITHs) have been completed, with at least three – Bidadari, Buangkok and Punggol North already under construction, while more are planned in the longer term - Beauty World, Bedok South, Hougang, Jurong East, Marina South, Pasir Ris, Tampines North and Tengah.
Investment in purpose-built student accommodation (PBSA) has been growing; and notwithstanding the challenging market conditions, it is still considered an attractive defensive asset class, according to analysts and industry players.
Global investment into the PBSA sector for the fourth quarter of 2019 topped US$7.6 billion, more than double that of the same period in 2018, according to data from Knight Frank. As at March 2020, the sector had seen some US$7.8 billion worth of investments, with volumes expected to surpass that of previous years.
Tang Wei Leng, Managing Director:
The current Covid-19 outbreak has rapidly changed the operating environment globally. Depending on the extent of the pandemic, operators could face sustainability challenges. It is perhaps early to comment on any structural change but operators would definitely have to be flexible to make product adjustments and investors would need to consider additional risk factor in assessing PBSA.
Developer Anchorvale has released its pricing for executive condominium (EC) OLÁ, with about 15 per cent of the 548 units to be priced under S$1 million.
Two bedroom units (775 square feet) are going at S$1,100 per square foot (psf) while the three bedroom units (926-1,055 sq ft) are priced at S$999 psf. Meanwhile, the four-bedroom units (1,389 sq ft) and the five bedroom units or penthouses (1,722 sq ft) are priced at S$976 psf and S$1,154 psf respectively.
Tricia Song, Head of Research:
Against high hopes, the 30% takeup appears to be disappointing. The developer of OLA EC had received 1,163 e-applications by the March 2 deadline for the 548-unit EC development, but only 14% converted to an actual sale after the price list was announced on 18 March. This could be due to the rising probability of an economic recession from COVID-19 and the resurgence of COVID-19 cases over the past week.
For big-ticket items - like buying a property - it requires a long term commitment, and job security which is now more uncertain. Despite offering a more luxurious image, OLA’s pricing per square foot and price quantum per unit were relatively similar to the two EC projects launched over the past one year: Piermont Grand and Parc Canberra which have sold 61% and 70% of their total units since their launch in July 2019 and February 2020 respectively.