25-storey integrated project in Jurong attracts interest

20140321-st-25-storey-jurong-integrated-project-attracts-interest COMMERCIAL units have been a hit with investors over the past year so the launch of an integrated development in the Jurong Gateway district is likely to keep interest on the boil.

Sales for the strata-titled Vision Exchange in Venture Drive start today for those who have expressed buying interest.

Walk-in investors can secure units in the 25-storey project at the official launch tomorrow.

There will be 250 units released for sale in this first phase, said developer Sim Lian Group in a statement yesterday.

Market observers said the supply of strata-titled commercial units in the vicinity is limited but buying and leasing demand for office units in Jurong is untested.

The 740-unit project comprises 53 medical suites spanning 183 to 1,163 sq ft; 47 retail units of 301 to 1,023 sq ft; and 640 office units ranging from 441 to 1,690 sq ft.

Office units will cost $2,150 per sq ft (psf) on average, while medical suites and retail units will go for about $4,498 psf, said Sim Lian. The developer's price list obtained by The Straits Times showed that Sim Lian had factored in an 18 per cent discount at the 99-year leasehold project.

Marketing agents told The Straits Times that office units from the sixth to 12th floors will be released for sale in this phase and major health-care groups have indicated their interest in bulk purchases of medical suites.

The development is expected to be completed in 2017.

Property experts said the project could benefit from the fact that the commercial market has escaped property cooling measures like the additional buyer's stamp duty and seller's stamp duty.

Ms Alice Tan, research head at property firm Knight Frank, said demand is likely to come from end-users who want to take advantage of Jurong Lake District's growth potential.

But she pointed out that investors could be mindful of leasing competition from the nearby International Industrial Park, where rents are cheaper. "Businesses that want to have their headquarters set up in Jurong East because they have factories in the area may want to have an office there.

"There has been some leasing interest for office space in Jem recently, so that could indicate there is demand for office space in the area."

ocheryl@sph.com.sg

Source: Straits Times, 21 Mar 2014