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The commercial and retail activity in Jurong East is expected to become more vibrant, following the government’s recent announcement that the terminus station for the Singapore-Malaysia High Speed Rail (HSR) link will be sited there, experts revealed.
After being established as Singapore’s third regional centre and second Central Business District (CBD), more major multinational companies are forecasted to relocate or expand to Jurong Lake District in Jurong East as the area becomes a key transit point for both countries, analysts noted.
“We expect this trend to gather momentum as more and more pharmaceuticals, research and development, consumer products, services and IT companies decide to relocate to or expand into Jurong Gateway,” said Cushman and Wakefield’s Research Director Christine Li.
“While, for some, the idea is to integrate with their respective manufacturing operations around Tuas, for others, it is about easily reaching out to Johor, Iskandar and beyond to Kuala Lumpur,” she added.
Touted as the biggest commercial hub outside the CBD, the Jurong Lake District consists of two precincts, namely Lakeside and Jurong Gateway.
Another draw point for Jurong East is the cheaper rents for retail and office space as compared to those in the CBD.
“With lower occupancy cost around the Jurong area … it is the best viable alternative outside the CBD for companies, both from the commercial and human-resource point of view,” said Desmond Sim, CBRE’s Research Head for Singapore and Southeast Asia.
In fact, Germany’s Daimler group is set to transfer from Centennial Tower in Marina Centre to the newly completed Westgate Tower in Jurong Lake District. The owner of the Mercedes-Benz brand will occupy about 55,000 sq ft and pay a monthly rent of around S$6 per sq ft according to media reports. This is 30 percent lower than what it would have paid had it renewed its lease at its original location which will expire in early-2016.
So far, over 90 percent of Westgate Tower’s 305,000 sq ft net lettable area has been taken up, the group revealed earlier this week.
“Coming on the heels of the latest announcement of Jurong East as the terminus for the high speed rail link between Singapore and Malaysia, Westgate Tower’s premium as a strategic commercial development in the Jurong Regional Centre is now raised,” said Michael Tay, Executive Director for Office Services at CBRE, the consultancy that negotiated the lease.
Image: Aerial view of Jurong. (Photo by Jpatokal; Wikimedia Commons)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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