Revised plans for Singapore’s second CBD kick-started with the release of Jurong white site

SINGAPORE – The first of three land parcels in Jurong Lake District (JLD) – formerly part of a 6.5ha master developer site meant to kick-start the development of Singapore’s second Central Business District – was released on March 16, after several major concessions to make the plot more attractive to developers.

Among the revisions, the Government will now undertake some infrastructure works, including demolishing existing state property, building an underground link to a Cross Island Line (CRL) MRT station, and removing roads that will no longer be in use.

The Urban Redevelopment Authority (URA) released the white site in Town Hall Link for sale under the reserve list of the 2026 first-half government land sales (GLS) programme to give potential tenderers time to study the revised planning and tender requirements.

It also increased the percentage of residential space for private homes and reduced the percentage of office space for the site.

Reserve list plots are released for sale only if a developer offers a minimum price deemed acceptable to the Government, or there is sufficient market interest.

The white site has a total potential yield of 186,139 sq m, comprising a minimum of 40,000 sq m of office space, about 1,200 private residential units, and 44,000 sq m gross floor area (GFA) of space for retail, serviced apartments, hotel, sports, recreation and community spaces, medical clinics and attractions.

In September 2024, a tender for the original JLD master developer site was not awarded as a bid of about $2.5 billion, or $640 per sq ft per plot ratio, from a consortium of five real estate heavyweights – CapitaLand Development, City Developments, Frasers Property, Mitsubishi Estate and Mitsui Fudosan (Asia) – was deemed too low.

As the Town Hall Link white site’s GFA is around half that of the JLD master developer site, the reduced development risk will give developers the option to undertake the project with greater confidence, URA said.

But several analysts noted that while the white site is more manageable, developers may not be in a hurry to trigger the site because of concerns over the impact of the war in the Middle East on the local and global economy. Also, there are other GLS sites to consider.

Rising oil costs could lead to higher inflation, which would subsequently drive up interest rates and financing costs, as well as construction costs, Mr Nicholas Mak, chief research officer of Mogul.sg, noted.

Ms Wong Siew Ying, head of research and content at PropNex, pointed out that the plot is still a sizeable one, which may potentially put the land cost upwards of $1.8 billion, and prompt interested developers to “partner up in view of the significant financial outlay”.

To drive JLD’s transformation, the Government has also invested in infrastructure and development projects in the precinct, including the revitalised 90ha Jurong Lake Gardens and the addition of two new MRT lines – Jurong Region Line (JRL) and CRL.

The JRL will be operational in stages from around mid-2028, and the CRL Phase 2, which connects to JLD, is expected to be completed in 2032.

The two new MRT lines, together with the existing North-South and East-West lines, will connect JLD to the rest of the island, including the city centre and upcoming Changi Airport Terminal 5.

The CRL will save commuters about 20 minutes of travel time between JLD and Pasir Ris Central as compared with today, URA said.

Construction to extend the CRL farther west from JLD is expected to start in 2027 to improve connectivity to the Jurong and the western industrial areas.

In addition, the Land Transport Authority has announced plans for the West Coast Extension, which will extend the JRL to connect to the CRL at the CR18 West Coast station by the late 2030s, and the Circle Line at Kent Ridge station by the early 2040s, reducing journey time between western Singapore and the city centre by up to 20 minutes. 

The development of the site will also involve the implementation of district-level infrastructure, specifically a district cooling plant and a district pneumatic waste conveyance system central station.

This would enable future developments to readily tap them, improving energy efficiency and supporting sustainability objectives, URA said. 

Mr Mark Yip, chief executive of Huttons Asia, believes that the residential and retail market segments in JLD will likely get a positive response from consumers, but the office component – despite being reduced – may still discourage developers from triggering the site.

“Decentralisation efforts by the Government have not gained much traction over the years, as many office tenants still prefer a central location,” Mr Yip said.

Demand for office space in the suburbs contracted by 54,000 sq m in 2025, pushing the vacancy rate to 14.9 per cent, the highest since the first quarter of 2023, he added.

But Dr Chua Yang Liang, JLL’s head of research and consultancy for South-east Asia, noted that office market conditions look more robust today than during 2023/2024, with the full-year URA office rental index growing by 0.3 per cent in 2025, following a flat reading in 2024.

“The lack of new CBD supply in the coming years, combined with improved accessibility in Jurong due to ongoing infrastructure projects, is likely to make this site more attractive to developers,” he said.

PropNex’s Ms Wong noted that the site has strong location attributes, and developers that get an early foothold stand to benefit from the precinct’s growth, and also capture pent-up housing demand given the limited new home supply.

Mr Marcus Chu, chief executive of ERA Singapore, said future residential development in the precinct can help replenish dwindling new home stock in Jurong East. There are just over 250 unsold units there as at March 16.

The development of JLD has advanced progressively over the years, with the area around Jurong East MRT interchange station establishing a critical mass of about 185,000 sq m of office space and about 2,000 homes, which are well-served by a range of retail, healthcare and institutional uses.

Over the next few years, new projects will further enhance the vibrancy of JLD. These include the completion of the new Science Centre and Jurong Gateway Hub – an integrated transport hub next to Jurong East MRT station incorporating a bus interchange, library, community club, sports facilities, offices and shops.

Some government agencies, including the Ministry of Transport and the Ministry of Sustainability and the Environment, are studying plans to move their offices to JLD.