Jubilee Place (JCube) ceased operation from 7 August this year and was redeveloped into a 40-storey residential project. This is welcome news for potential buyers in Jurong East, as it will be a new residential development in the district after a long absence.
According to CapitaLand Development (Feb 7), the new residential development, which includes a two-storey shopping mall, is expected to be launched in the second half of the year and completed in 2027.
CapitaLand has yet to reveal the number of residential units and the selling price of the new project, but some market participants expect the project to comprise over 400 units at a price of at least $2,000 per square foot.
In recent years, the government has been actively promoting the development of the Jurong area, including the announcement of the development of the Jurong Lake District, which will bring in new homes, businesses, entertainment and amenities.
However, in terms of private residential developments, Jurong East does not really have many new projects, with the latest being J Gateway, which was launched in June 2013, 10 years ago.
This 738-unit development by MCL Properties was completed in 2017 and is located next to Westgate, not far from the Jurong East MRT station.
It was launched at a price range of $1,450 to $1,650 per square foot, one of the highest prices for new private residential developments in the suburbs. Even though the Government announced the Total Debt Servicing Ratio (TDSR) framework at the time of its launch, many buyers still rushed to take out loans before the mortgage measures came into effect.
Judging from the latest transaction prices of The Cascades, buyers were mostly making a profit at that time. Several of its recent units have traded between $1,778 and $1,917 per square foot, like a unit that changed hands last month for $900,000 at the equivalent of $1,900 per square foot.
It is worth noting that there are many smaller units in Kingsland, which are less suitable for buyers with families.
Another project near Yu Bing Square is Ivory Heights, a 654-unit residential development built in 1993 as a medium income condominium (HUDC) and privatised in 1998, with 63 years left on the lease. It is an older project with a much lower price per square foot compared to the Grandview.
Last month, for example, a larger 1,948-square-foot unit was sold for $1.7 million at $873 per square foot, half the price of Guy's Place.
Greenwood Park, with its 825,502 square feet of land and a gross floor area ratio of 1.6, has been one of the targets of the collective sale market with its high redevelopment potential. However, it has been the subject of numerous collective sale programmes, but has failed to gain the support of 80% of homeowners to get on the collective sale train.
Westmere, next to Greenwood Park, is another older project. Built in 1999, it has 286 units and is 24 years old. It was developed by CapitaLand and recently traded at $864 to $979 per square foot.
There are two other private residential developments to the west of Jurong East - Parc Oasis and The Mayfair. The former was built in 1995 with 950 units by Marco Polo (later Wheelock Properties) and the latter was built in 2000 with 452 units by Keppel Land.
Both projects have recently traded at around $1,006 to $1,105 per square foot, with total prices generally below $1.5 million, making them a sweet spot for many buyers.
As far as the rental market is concerned, Jurong East has seen active rental activity, with the likes of Kingswood having 390 leases in the past year, equivalent to half of the units being rented out. Their rents range from $2,000 to $9,300, with a recent 2-bedroom unit rented at $4,250 per month.
Overall, Jurong East, one of the more remote residential areas in the west of the country, was once seen by many as a "no-good" area. However, the government's development efforts over the years have made the area's future potential exciting to watch. However, there is no shortage of speculators among private property buyers, and as a result of their speculation, Jurong East private property prices have outperformed the general market, so eager buyers may want to keep an eye on this to avoid being overpriced and burdened with a heavy mortgage.
