http://www.straitstimes.com/archive/...ities-20140322
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Lakeside to get boost from future amenities
Plans under way for development of a business and medical hub nearby
Published on Mar 22, 2014
By Cheryl Ong
LAKESIDE is probably best known to Singaporeans as the home of the quaint, tranquil Japanese and Chinese gardens.
The area remains one of the quieter and less developed regions but it is set to get swept up in plans to develop the Jurong Lake District into a waterfront precinct for business, living and leisure.
Lakeside, along with the Jurong Gateway area, is in the 360ha Jurong Lake District, part of the Government's plan to decentralise commercial hubs to the suburbs.
The development of a commercial and medical hub in Jurong Gateway will see a surge in the working population and medical tourists in the area. Market observers expect neighbouring Lakeside to benefit from the new lease of life in the area.
Ms Elaine Chow, executive director of research at Chesterton Singapore, said: "There is no denying the potential for capital and rental growth in the medium to long term. Jurong Gateway is currently a bustling regional centre.
"It is only set to grow bigger, more vibrant and dynamic as a commercial and medical hub with the completion of Westgate, Big Box and the Genting Hotel, a 700-bed Ng Teng Fong General Hospital and 400-bed Jurong Community Hospital."
She added that home prices and rents in Lakeside are likely to remain stable in the next two years, "as fundamentals of a new work-play district are just being put in place".
Buyers flocked to the launch of The Lakefront Residences in Lakeside Drive when it went on the market in 2010. The 629-unit project was sold out at a median price of $1,000 to $1,050 per sq ft (psf).
However, data from the Urban Redevelopment Authority showed that units were sold on the secondary market for a median price of $1,199 psf in the first quarter.
Median prices of The Lakeshore in Jurong West Street 51 were $1,055 psf, while Lakeholmz in Corporation Road sold units for a median price of $1,050 psf.
"The Lakeshore and Lakeholmz saw very encouraging price increases last year," said Mr Ong Kah Seng, director of R'ST Research. "The Lakeshore's prices increased by about 8 per cent last year, whereas Lakeholmz's prices increased about 12 per cent last year."
The latest private residential project to hit Lakeside will be MCL Land's Lakeville in Jurong West Street 41. The 99-year leasehold development will feature one- to five-bedroom units ranging from 560 to 2,517 sq ft. Experts expect prices at the launch to fall between $1,250 and $1,350 psf.
However, the project is likely to attract demand from upgraders living in surrounding Housing Board flats, much like The Lakefront Residences, and investors might be less keen owing to its far-flung location, noted Mr Ong.
"Given the subdued residential market and availability of alternative investment options in the city fringe, which are priced around $1,200 to $1,500 psf, it would require more time and further development works for the focus of investors to shift to Lakeside," Ms Chow pointed out.
But Mr Eric Cheng, group chief executive of property agency ECG Holdings said rental demand could still emerge as more jobs are created with the construction of more offices, hotels and hospitals.
"However, in the current market, those who wish to enter would still need to take into consideration the Total Debt Servicing Ratio, which remains the main factor holding buyers back," he said. "Nevertheless, there are still qualified buyers and investors waiting for the chance to grab a good deal at an attractive price in this current market."
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