(Credit: Samuel Isaac Chua/ The Edge Singapore)
SINGAPORE (EDGEPROP) - The Shenton Way/Tanjong Pagar precinct is set to outperform other office locations within the CBD, as new projects and redevelopment schemes continue to transform the area over the next decade, says real estate consultancy JLL. (See also: The future CBD: Finding the right formula for live, work and play)
“Traditionally seen as a secondary alternative to Raffles Place and Marina Bay, Tanjong Pagar has been home to older office buildings and fewer multinational corporations. However, over the last five years, Tanjong Pagar’s office stock has increased by 27% and its critical mass now outstrip its CBD counterparts, making it the biggest hub in the CBD,” says Regina Lim, head of capital markets research, JLL Asia Pacific.
The newer office developments in the area are “thoughtfully designed, efficient, well-finished, richly landscaped with urban parks and seamlessly connected to transport infrastructure and surrounding developments,” highlights the report, noting that this has “lifted both the quantity and quality of occupiers, residents and visitors to the area, and achieve rents comparable to those located in Raffles Place and Marina Bay”.
Policy efforts to encourage the development of a work-live-play environment in the CBD has also led to a “significant” increase in residential, hotels and serviced apartments in Tanjong Pagar, of which over 50% of homes and over 30% of the hotel/serviced apartment stock in the CBD are located.
Connectivity to the precinct has also increased, with the slated opening of Shenton Way Station along the Thomson-East Coast Line and Prince Edward Road Station along the Circle Line.
JLL forecasts that prime office buildings will make up 45% of Tanjong Pagar’s Grade-A office stock in 2027, an increase from 34% currently, while the number of homes, hotel rooms and serviced apartments will also grow by 28%, based on projects in the pipeline, therefore outstripping developments in Marina Bay and Raffles Place.
Over the next few years, new redevelopment projects in the area include AXA Tower (new development expected in 2027), Keppel Towers (2024) and Fuji Xerox towers (2026), which will add to the Grade-A office supply, residential units, hotel rooms, serviced apartments and retail spaces, further enhancing the vibrancy of the locality, it says.
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