Jurong Gateway tipped to be the next big thing in regional real estate

It can give the CBD a run for its money.

Jurong East, the country’s largest commercial hub outside the Central Business District, yesterday earned another jewel in its crown with the revelation that it might well be the site for the Singapore-Kuala Lumpur high speed rail (HSR) terminus.

Analysts lauded the choice and noted that the 70-ha Jurong Gateway will benefit most from the new terminus in terms of real estate values.

“Jurong Gateway, which boasts 500,000 sqm of office space, 250,000 sqm of retail, F&B and entertainment space and 2,800 hotel rooms, will become the most ideal suburban locations for company headquarters, business services, education and science and technology sectors,” stated Christine Li, Director of Research at Cushman and Wakefield.

She noted that potential new entrants could include both the multi-national companies and local SMEs currently located in the city fringe/suburban locations, as well as technology companies which will be able to tap on the large talent pool from the many surrounding tertiary and research institutions,

“Once the HSR is in operation, we think that Jurong Gateway could emerge as a new urban centre in the greater Singapore-KL megacity. Its strategic location could compliment that in the CBD and overtime, it will become a mini-city on its own with work, live and play in the bustling regional hub,” she said.

Desmond Sim, Head of CBRE Research for Singapore and South East Asia, added that the Jurong East site makes the most economical and logistical sense.

“Commercial and retail activity in Jurong Gateway will be boosted as a result. This could be the most important and final piece of the puzzle to seal Jurong Gateway’s status as a regional commercial hub, the same way that Tampines has the airport and Woodlands the causeway to link Malaysia with Singapore,” he said.

Sim noted that In a decentralised location, occupancy costs will be managed at a level that will attract MNCs to locate their offices here.

“Firms with a high exposure to Singapore’s northern neighbours will also find Jurong Gateway particularly attractive,” he stated.

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