Major facelift for Paya Lebar
Major facelift for Paya Lebar
Straits Times: Sat, Sep 03
THEY have long been seen as a bit sleepy, seedy and rundown, but Paya Lebar and Geylang are undergoing radical changes to make them a commercial hub - with positive spin-offs for home owners.
Hotels, shops, parks and other facilities are on the drawing board for the area, as part of the Urban Redevelopment Authority's 2008 Masterplan.
There is about 12ha of land available for development and a potential commercial floor space of more than 5 million sq ft.
The new Paya Lebar Central is poised to be a
bustling commercial centre near the MRT station, with a mix of office, retail and hotel developments, and attractive public spaces.
Mr Alan Cheong, Savills' associate director of research and consultancy, said: 'The Kallang district is perceived to be more genteel; it will have to attract users who may be (more similar in profile) to those of traditional Central Business District commercial space users.'
A key driver of the makeover will come when the Ministry of Manpower opens a Continuing Education and Training campus in Paya Lebar Central in 2013. The eight-storey campus will focus on tourism, hospitality, food and beverage, retail, security and aerospace.
'By taking the lead, the Government is sending a signal that it is committed to its plan for the area,' said Ms Chia Siew Chuin, Colliers International's director of research and advisory.
Industry players have also been eager to stake a claim in the area.
In April, there was a 10-way tussle between some of Singapore's biggest property players for a 1.5ha commercial site next to Paya Lebar MRT.
The tender was clinched by a consortium of property group Low Keng Huat, Guthrie and Sun Venture, which bid $586 million, or $872 per square foot per plot ratio (psf ppr), well above the $550 psf ppr or so predicted by analysts.
A 2ha plot at the corner of Sims Avenue and Tanjong Katong Road was recently released for sale as part of the Government Land Sales Programme. It is zoned for office, hotel and commercial use.
Another big field of developers could line up for this site, say market watchers, with an expected top bid of as much as $960 psf ppr. The tender closes on Oct 18.
Several existing buildings in the precinct are primed for redevelopment as well.
The old Singapura Theatre at the junction of Jalan Turi and Changi Road, once the go-to spot for Hindi and Malay movie fans, is likely be turned into a mixed-use project with apartments and shops. A partnership between Roxy-Pacific Holdings and Macly Capital secured the site last November for $44.9 million.
In Geylang Road, the old Lion City Hotel site and the former Hollywood Theatre next door will become a learning and enrichment hub, with a residential component. The UOL group emerged tops in a six-cornered fight earlier this year, with its bid of $313 million for the site.
Geylang Serai will also be receiving a facelift, to better reflect its distinct cultural identity.
The Malay Village will be redeveloped and a new civic centre called Wisma Geylang Serai added.
While the focus is on the district's commercial potential, the redevelopment effects are rubbing off on the area's residential sector as well.
Savills said the average price of non-landed property in district 14 has risen to $1,035 psf, 35 per cent up on the $766 psf average in 2008.
Far East Organization's latest project, euHabitat, is close to Paya Lebar, and like other developers, it is counting on the district's rejuvenation to draw new residents.
'Eastern districts are traditionally popular with home buyers...Paya Lebar is already an established precinct with good transport links, services and amenities,' said Mr Chia Boon Kuah, Far East's chief operating officer for property sales.
While the neighbourhood may seem to have a lot going for it, some analysts caution against being over-enthusiastic about the redevelopment plans.
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Paya Lebar Central is poised to be a bustling commercial centre, with office, retail and hotel developments, as well as attractive public spaces.
Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.
