Bullish prices for Jurong condo launch

[reporter2]

http://www.straitstimes.com/archive/...aunch-20130612

Bullish prices for Jurong condo launch

Average prices at J Gateway in new growth area tipped to hit $1,650 psf

Published on Jun 12, 2013

By Cheryl Ong


THE upcoming launch of MCL Land's J Gateway in Jurong East with prices in the bullish region of $1,600 per sq ft (psf) is set to test buyers' appetite for suburban homes.

Average prices of homes at the 738-unit development are expected to range from as high as $1,650 psf for a 474 sq ft one-bedder to $1,450 psf for a 1,163 sq ft four- bedder, according to marketing agent Huttons.

International Property Advisor chief executive Ku Swee Yong said the launch price of $1,650 psf will be a record for the Jurong East area. But he said J Gateway will draw buyers as it is the first condominium to be launched near Jurong East MRT station in 10 years.

One agent said he has received over 100 queries from interested buyers in the past three weeks.

In comparison, developments launched in the area in the last few years are further from Jurong East MRT station - The Lakefront Residences, launched in 2010, is two MRT stops away while Parc Oasis is at Chinese Garden MRT station.

Echoing a similar view, R'ST Research director Ong Kah Seng said while prices at the new condominium are "slightly on the high side", its prime location is a top draw for buyers.

Mr Ong believes the makeover of Jurong East will draw buyers. "I would think that a lot of buyers are excited about projects in new growth areas. I would suppose Jurong East is able to offer that."

Based on the Government's Master Plan 2008, the 70ha Jurong Gateway encompasses amenities such as the Jurong East MRT station, existing and upcoming malls like Jem, J Cube, Westgate and Big Box, and Ng Teng Fong Hospital.

In due course, a new hotel will be developed in Jurong Gateway - a site there was bought for $238.2 million in November by Resorts World Singapore, a unit of Genting Singapore.

Jurong Gateway is one of two zones - the other being Lakeside - that make up Jurong Lake District.

Other consultants say prices at 99-year leasehold J Gateway are not far off from what other condos are also asking.

Savills Singapore research head Alan Cheong pointed out that some units at recently launched The Trilinq at Clementi, just one MRT stop away, sold for $1,500 psf. He said: "If you adjust for J Gateway's location within the new Jurong Lake District, you would think the range of $1,450 psf to $1,650 psf is definitely expected."

If J Gateway has a successful launch, this will likely have a ripple effect on prices of homes in the Jurong East area, said Mr Cheong: "It's like disturbing a quiet pond. With one mega launch like this, it will certainly create waves around the region."

Prices of units at Keppel Land's The Lakefront Residences in the Lakeside area are at $1,434 psf for a 495 sq ft unit, and are expected to inch up, said Mr Cheong.

That in turn, might lift resale prices of older condominiums such as Parc Oasis, which are at $1,022 psf for a 1,076 sq ft unit.

"Gone are the days where you can find anything below $1,000 in the suburban areas at new launches," he noted.

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[fiat500]

Buyer must be insane to pay 1600psf for jurong ..
Furthermore it's LH...

[phantom_opera]

when u understand the world has 1 billion emerging middle class fighting for a place in major Asian cities ..... then 1600psf is not insane especially when quantum is small .. it is called the "Asian story premium"

[RCT]

But u can get better location with that psf.... Right?

[kane]

But u can get better location with that psf.... Right?

Much better. But that's because I am not much a west person.

[fiat500]

when u understand the world has 1 billion emerging middle class fighting for a place in major Asian cities ..... then 1600psf is not insane especially when quantum is small .. it is called the "Asian story premium"

I reckon this "story" nobody will read...
Katong would definitely be a much better choice.

[Pikachu1245]

I reckon this "story" nobody will read...
Katong would definitely be a much better choice.

Katong may not be a better choice for someone who works in the western part of Singapore. As time is money, saving on traveling time to / from work is critical for many potential buyers. As jobs are being created in several parts of Singapore at OCR regions, so the psf of OCR are naturally moving upwards........
Do not be surprise if it even move towards $2000psf....many people (local/foreigner) can easily afford......

[azeoprop]

If I work in the west, I rather stay in a FH semi-d or cluster house in bukit indah.

[Khng8]

Hmmm.
Interesting proposition on the Bukit Indah landed.
Even without HSR, would JB properties be a better alternative?

[hyenergix]

Hmmm.
Interesting proposition on the Bukit Indah landed.
Even without HSR, would JB properties be a better alternative?

Yes, indeed. But if they have children attending schools, then it will be challenging.

[fiat500]

Katong may not be a better choice for someone who works in the western part of Singapore. As time is money, saving on traveling time to / from work is critical for many potential buyers. As jobs are being created in several parts of Singapore at OCR regions, so the psf of OCR are naturally moving upwards........
Do not be surprise if it even move towards $2000psf....many people (local/foreigner) can easily afford......

Katong was just quoted as an example. It could also be redhill, bukit timah or holland village etc....
All these definitely better buys than jurong.

[Ringo33]

Katong was just quoted as an example. It could also be redhill, bukit timah or holland village etc....
All these definitely better buys than jurong.

All those area you mentioned are already very well developed and there are actually nothing much in the pipe line beside more supply of residential development.

At JLD, we are only seeing the tip of the iceberg, in the coming months and years, you will then see how this entire site transform in to the largest commercial hub outside CBD + watch out for a theme park coming up in lakeside area.

In terms of rental investment, J Gateway is a no brainer.

[amk]

Good to have faith in yr investment
So you totally believe in this jurong story, then go for it. 1600 is cheap actually, if all the commercial activities come on line and there should have plenty of rental demand.

[Khng8]

From investment perspective, it still hinges on how much of the future price the developer has already factored in the selling price.
And what is the investor's time horizon.
I don't find it attractive if one has to pay 10% ABSD on $1650 psf.

[Allthepies]

I reckon this "story" nobody will read...
Katong would definitely be a much better choice.

So as to eat katong laksa?

[lionhill]

Katong was just quoted as an example. It could also be redhill, bukit timah or holland village etc....
All these definitely better buys than jurong.

All depend on where you are working and whether you have children going to school.

If you are working in CBD, Katong and redhill will be a good choice. For people working in Science Park or Jurong, even redhill and Yowetan's favorite, Mt Sinai seem remote lah, let along Katong...

For school children, holland village or redhill are also not convenient choice, not familar with Kotang, therefore, no comments.

[bakasa2002]

Any prediction how will the sales be at this type of psf? Say for the launch weekend? =)

[teddybear]

JLD? No hurry to buy. Next recession can buy at <S$1200 psf...

All those area you mentioned are already very well developed and there are actually nothing much in the pipe line beside more supply of residential development.

At JLD, we are only seeing the tip of the iceberg, in the coming months and years, you will then see how this entire site transform in to the largest commercial hub outside CBD + watch out for a theme park coming up in lakeside area.

In terms of rental investment, J Gateway is a no brainer.

[CondoInterested]

I was a West person, used to stay in the West 20+ years and I also think the price is crazy.

Looking at the crowds at Clementi and Jurong East. OMG, it's like Boon Lay Point / MRT and Tampines Town Central. Think nowadays, Orchard might have lesser crowd compare to these areas.

Oh, how can you say Mt Senile is remote, it has a nearby Dover MRT. Wait some Tan gets angry...

[lajia]

Any prediction how will the sales be at this type of psf? Say for the launch weekend? =)

SOLD OUT within 1 wk...

[CondoInterested]

SOLD OUT within 1 wk...

You mean 1 wkend or 1 wk before launch...

[Pikachu1245]

SOLD OUT within 1 wk...

It will Not be surprising that one bedder will be sold out in few mins/hrs of VVIP launch due to limited supply just like La Fiesta sales....and many will be turned away from sold out condition for one bedder.....

[Autumnwinds]

I would beg to differ, there are really many units with poor facing. Let's see how well the developer would price it.

I agree that 1650 is too much a price to pay for the West. I'm too a west person for the past 20years. And I will add that I do not like it here(will be moving to another part of Singapore in a few years), but to people that have been here for a long time tool, they would agree that the developments in the area have indeed brought much excitement. Maybe to many others JLD seems like a very interesting place, but my personal opinion is that the west would always be the west.

But hey, to the people who genuinely like the west and what JLD has to offer, I think it's their dough and they choose how they wish to spend it. We can all lay shit on the development and claim how lousy the area is. But the fact is that it isn't. I've lived in the age where the west was truly as what people claimed. The smell of cocoa in the air/Jurong island air pollution. Despite that, Everyone here still seems to be doing well.

To the people that truly value the convenience it brings, and to the people that feel there is much potential in the area, they aren't wrong. For people who feel that the 1650 could be put to better use somewhere else, you aren't wrong. But it's where we truly feel it best to put our money. What if in the near future the price has appreciated to 2000psf, I'm sure many people would be shitting bricks upon hearing it, but the fact remains that it isn't impossible.

Probably many people who liked me, have been living here for almost all of their lives, be it upgrades, investors whatsoever. They feel there is potential to this(though there is pretty much potential everywhere else in Singapore), why should others be critical about how their choice. Though we can give our two cents, but ultimately they aren't spending our money? It belongs to them, they have the right to whatever they want, we have the right to say whatever we want to, but perhaps to the people who have much negativity on this development, perhaps we could give the people who wish to purchase it some peace, and congratulate them on a solid investment.

Having said all of that, I'm neither a spokesperson of MCL, nor am I'm vesting in this project. I was merely giving my two cents.

[CCR]

JLD will be a classic case of people's past perception causing them to discount the potential but in 5 years time, the reality will set in....

IF MND and Khaw is working there for the next 30 years (above Jem) you think the place will suck?

I dont like West due to its reputationm but i think this story will be a generational shift in paradigm....

The whole area will be more interesting than PAya Lebar, or even Kallang riverside...

Humans and especially in this internet era wants instant gratification... so until they see the finished product in 5- 8 years time they will all want it, but by then gotta pay much higher prices....

Thats why some people make money while others suck thumb....

Always buy during massive construction and and sell once the area is completed...

In property buy early and buy contrarian never wrong....

In stocks contrarian might not work coz a company can go bankrupt, but for property, esp SG will not go bankrupt so when you buy when it gloom and doom, thats why you make most money...

And buy when they are massive construction and inconveniences so you get the upside once its completed...

For JGateway, its simple... if its 1650 psf now and its sold out in weeks, then by the time it TOP in 4 years with many development in JLD completed it will be 2k psf simple as that.... unless another lehman comes...

Why would someone pays 1650 psf and then when its completed spanking new with all shopping and amenities completed sell for much lower?

[Ringo33]

I would beg to differ, there are really many units with poor facing. Let's see how well the developer would price it.

I agree that 1650 is too much a price to pay for the West. I'm too a west person for the past 20years. And I will add that I do not like it here(will be moving to another part of Singapore in a few years), but to people that have been here for a long time tool, they would agree that the developments in the area have indeed brought much excitement. Maybe to many others JLD seems like a very interesting place, but my personal opinion is that the west would always be the west.

But hey, to the people who genuinely like the west and what JLD has to offer, I think it's their dough and they choose how they wish to spend it. We can all lay shit on the development and claim how lousy the area is. But the fact is that it isn't. I've lived in the age where the west was truly as what people claimed. The smell of cocoa in the air/Jurong island air pollution. Despite that, Everyone here still seems to be doing well.

To the people that truly value the convenience it brings, and to the people that feel there is much potential in the area, they aren't wrong. For people who feel that the 1650 could be put to better use somewhere else, you aren't wrong. But it's where we truly feel it best to put our money. What if in the near future the price has appreciated to 2000psf, I'm sure many people would be shitting bricks upon hearing it, but the fact remains that it isn't impossible.

Probably many people who liked me, have been living here for almost all of their lives, be it upgrades, investors whatsoever. They feel there is potential to this(though there is pretty much potential everywhere else in Singapore), why should others be critical about how their choice. Though we can give our two cents, but ultimately they aren't spending our money? It belongs to them, they have the right to whatever they want, we have the right to say whatever we want to, but perhaps to the people who have much negativity on this development, perhaps we could give the people who wish to purchase it some peace, and congratulate them on a solid investment.

Having said all of that, I'm neither a spokesperson of MCL, nor am I'm vesting in this project. I was merely giving my two cents.

your feeling reminds me of what people were saying about Jurong when FEO launch Lakeshore at close to $1000psf.

[Autumnwinds]

your feeling reminds me of what people were saying about Jurong when FEO launch Lakeshore at close to $1000psf.

Hahaha, how come?? I speak with experience about lakeshore. I did go to see the project. I felt the furnishing wasn't good and at that point I felt it a ridiculous price to pay.

I would add that my secondary school is beside lakeshore.

[CondoInterested]

Yuhua Secondary School?

I teached there as relief teacher for 1 month and I moved on when I got my first job. But that was hundreds of moons ago.

Impressed, Lakeshore actually has it's own website with all the nice picture of their activities.

[Autumnwinds]

Yuhua Secondary School?

I teached there as relief teacher for 1 month and I moved on when I got my first job. But that was hundreds of moons ago.

Impressed, Lakeshore actually has it's own website with all the nice picture of their activities.

Good guess, switch the YU with a FU.

I've a friend staying there, been to his place many times before. I would say it's not as bad as I first imagined.

[kane]

if they sold Lakeshore at 1000psf, it surely took the owners a long time to get to where they are today on a psf basis.

[Komo]

still JLD is a better choice than Iscandar if one is looking for both investment and dream home in a nice living environment. Iscandar may be just dream afterall