Despite the lack of property-related measures in the 2016 Budget speech, analysts say it was still not without exciting news for the property sector.
In the speech delivered in Parliament on Friday (24 March), Finance Minister Heng Swee Keat revealed the government’s plans to develop Jurong Industrial District (JID) which will house facilities for activities such as learning, research, innovation and production within a single, next-generation industrial district.
According to JLL, the development of JID will transform the Jurong West locale. “As the development of JID takes shape, we can expect demand for real estate ranging from homes, offices, retail, hospitality and industrial to rise and along with this, a general rise in real estate value in and around JID.”
Looking ahead, Christine Li, director and head of research at Cushman & Wakefield said residential properties, as well as office and retail properties in the city-state’s western corridor, will benefit from the development of JID over the medium- to long-term.
“Jurong Innovation District hence serves as an alternative location for budding tech and creative entrepreneurs to ride on the wave of big data, IoT(Internet of Things) and e-commerce and prepare themselves for the Smart Nation in the next decade,” said Li, adding that the government’s move to develop JID is strategic especially with the High-Speed Rail connecting Jurong and Kuala Lumpur and Jurong Regional Line being underway.
“JID which will be well-connected via the Jurong Regional Line can serve as a back-end support for the Smart National Trials at Jurong Lake District. Over time, the scale of the tech and creative clusters in the western part of Singapore could possibly rival that of Silicon Valley in San Francisco and will further attract regional and international tech and creative companies to set up offices here,” she added.”