No-go for HSR: Will Jurong property market be derailed?

By
/ EdgeProp Singapore
|
June 2, 2018 7:30 AM SGT

Malaysian Prime Minister Mahathir Mohamad may have stopped the RM110 billion Kuala Lumpur-Singapore high-speed rail project in its tracks, but whether it will dim the prospects for Singapore’s Second CBD remains to be seen. Property consultants weigh in on the impact that the move could have on the property market in Jurong.

When Lakeside Towers on Yuan Ching Road in Jurong West was launched for collective sale on April 28, it was said to be strategically located in a high-growth area — the Second CBD in Jurong Lake District.
Lakeside Towers was put up for collective sale at the end of April, and the tender closed on May 28, the same day that Malaysian Prime Minister Mahathir announced that he was dropping the High-Speed Rail project
A key attraction was the planned Kuala Lumpur-Singapore high-speed rail (HSR) terminus. “It will transform the whole of the Jurong Lake District into a brand-new prominent gateway into Singapore,” according to the press release by Lakeside Towers’ marketing agent, Huttons Asia.
The owners of units at the condominium are expecting at least $305 million from the collective sale. Including an estimated $57 million differential premium and for topping up the lease to a fresh 99 years, the land rate worked out to $1,125 psf per plot ratio (ppr).

The disruptor

The tender of Lakeside Towers closed on May 28 at 2pm, but it was overtaken by events when Malaysia’s recently elected Prime Minister Mahathir Mohamad dropped a bombshell by telling the press that he was scrapping the RM110 billion ($37 billion) HSR.
Terence Lian, Huttons Asia head of investment sales, who is handling the marketing of Lakeside Towers, declines to comment on the outcome of Lakeside Towers’ collective sale. He says, “We were riding on Jurong Lake District as Singapore’s second CBD, not so much the HSR.” Lian adds that the condo is also adjacent to the 90ha Jurong Lake Gardens, “the second-largest garden in Singapore”.
View of Jurong Lake Gardens and the Jurong Lake District (Credit: Huttons Asia)
Until May 28, Jurong Lake District’s prospects had never looked brighter. While Malaysians went to...