Vivienne Tay
JCUBE, a leisure and edutainment mall in Jurong East, is set to close its doors in August to make way for a 40-storey residential and commercial development.
The move comes after CapitaLand Development (CLD), the development arm of CapitaLand Group, obtained provisional permission from Singapore’s Urban Redevelopment Authority to redevelop the JCube site, it announced on Tuesday (Feb 7).
Observers are estimating a S$2,000 to S$2,100 per square foot (psf) price tag for residential units of the new development, which will have commercial space on the first and second storeys. It is slated for completion in 2027.
The project will be connected to Jurong East MRT interchange, Westgate and IMM Building via J-Walk, a covered elevated pedestrian network in the Jurong Lake District (JLD).
Eventually, it will be linked to the upcoming Jurong East Integrated Transport Hub, which boasts a bus interchange, public library, community club and sports centre, among other amenities.
CLD expects to launch the new development for sale in the second half of 2023, said chief executive Tan Yew Chin. Exact details of pricing as well as the number and size of the units, have yet to be disclosed.
The redevelopment of JCube will complement the Singapore government’s plans to bring new homes, along with new businesses, recreational facilities and amenities to the JLD, CLD noted.
It also adds to anticipation over potential residential launches in the vicinity, including a 6.8-hectare mega white site on the confirmed list of the first half of the 2023 government land sales programme.
The white site, which comprises three plots of land, will be sold to a master developer which will build up to 375,000 square metres (sq m) in gross floor area (GFA) in the next five to 10 years. This includes 1,760 private homes, 150,000 sq m of office space, and 75,000 sq m of complementary uses such as for retail, hotel or community.
In May last year, a wholly-owned subsidiary of developer Wing Tai Holdings bought Lakeside Apartments for S$273.9 million at a 14 per cent premium, for its attractive location and proximity to the JLD. Plans are underway to redevelop the site into a development of more than 300 units.
Months later, Park View Mansions, situated near Jurong Lake Gardens, was sold to joint tenderers Chip Eng Seng, KSH holdings and SingHaiyi. The trio paid S$260 million for the 160-unit condominium, with plans to redevelop the site with up to 440 residential units.
Together with the new JCube development, the potential launches will help to alleviate pent-up demand for housing in Jurong, given the lack of new condo launches in recent years, noted property analysts.
“Residential homes in Jurong Lake District may be attractive in the long term, as regions zoned for infrastructural growth and substantial transformational works tend to see faster capital appreciation,” said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
The potential new launches will likely boost home prices in the resale market and possibly have a spillover effect on the Bukit Batok and Clementi areas, said Lee Nai Jia, PropertyGuru’s head of real estate data intelligence, digital and software solutions.
In terms of pricing, Lee expects the new JCube residential project to have an average selling price of S$2,100 psf and upwards, aligned with recent launch prices of the outside of central region developments.
Desmond Sim, chief executive of Edmund Tie, projects around S$2,000 to S$2,100 psf – the sweet spot for Housing and Development Board flat upgraders. He notes that demand for affordable suburban housing will still be relevant.
“The perfect price will still garner interest,” Sim said when asked if rising interest rates and worries over economic uncertainty would damper demand.
He noted that obtaining the change of use was the best decision for CLD, due to the site’s prime and well-connected location.
Echoing the sentiment, OrangeTee’s Sun said having a mixed development near an MRT station as well as ample amenities will also likely command a price premium.
In the last two months, units at J Gateway, which is near JCube, changed hands between S$1,778 and S$1,917 psf. Pricing on a psf basis, however, has been mostly flat since the start of 2022, when units transacted at S$1,770 to S$1,880 in January and February.
JCube, which opened in 2012, has a GFA of about 316,741 sq ft and a net lettable area of about 210,038 sq ft. It had 115 tenants and committed occupancy of about 95.5 per cent as at Dec 31, 2021.
In January last year, CapitaLand Integrated Commercial Trust’s manager said it would divest the shopping mall for S$340 million to CLD at a net property income yield of less than 4 per cent.
On top of major tenants like Don Don Donki, Haidilao and Daiso, JCube is also home to Singapore’s first and only Olympic-sized ice skating rink.
CLD said it is working closely with JCube’s tenants and providing them with the necessary support to ensure a smooth handover of the premises. The mall’s last day of operations is Aug 6.