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Strong interest in Jurong Gateway strata-titled project
Area's potential as business hub drives sales in Vision Exchange, say analysts
By: Cheryl Ong
THE Jurong Gateway District's potential as a new business hub appears to be driving strong interest in the area's first strata-titled commercial project.
The 740-unit Vision Exchange has sold at least 70 per cent of the 250 units released at last weekend's launch, The Straits Times found when it visited the showflat at Venture Avenue on Wednesday.
Office units were sold for an average price of $2,150 per sq ft (psf), while medical and retail units went for about $4,498 psf on average, the project's developer, Sim Lian, said in a statement.
The 25-storey project, which comprises 53 medical suites, 47 food and beverage units and 640 offices, has a total gross floor area of about 688,890 sq ft.
R'ST Research director Ong Kah Seng said the demand for units at the project was "understandable" as there is a lack of strata offices available for companies seeking better-grade suburban offices.
Government agencies such as the Ministry of National Development, the Building and Construction Authority and Agri-Food and Veterinary Authority of Singapore have announced plans to lease space at a 345,000 sq ft office tower at Jem, built by Australian developer LendLease.
This means companies supporting these agencies will be keen to shift their operations there, experts said.
This should also spur rental demand for residential properties from employees working in the area, they added.
Investors should expect reasonable rental yields of 3 per cent to 4 per cent, said Mr Roy Chong, head of business space at real estate agency PropNex.
However, investors will benefit more from the property's capital appreciation as the area develops, said Mr Chong.
Mr Ong added that the project's medical suites will benefit from their proximity to the Ng Teng Fong Hospital and Jurong Community Hospital, and that medical tourists will move west with the completion of Resorts World Singapore's hotel.
However, he cautioned that suburban strata office space is still an untested investment as there is still uncertainty over what reasonable rents should be.
"A realistic rent for new offices in Jurong East is about $6.50 psf a month," Mr Ong said.
"But if rents have to ultimately be pegged at affordable rates for tenants, it might not bring in desired returns for investors who bought strata offices at high prices."
- Number of units: 740 over 25 floors - 53 medical suites, 47 food and beverage units and 640 offices.
- Average price of office units: $2,150 psf.
- Average price of medical units: $4,498 psf.