According to JLL in its research report on Aug 21, policy efforts to encourage the development of a work-live-play in the CBD also resulted in a significant increase in residential, hotels and serviced apartments, especially in the Tanjong Pagar precinct, where over 50% of homes and over 30% of the hotel/serviced apartment stock in the CBD are located.
“The Tanjong Pagar precinct has traditionally been seen as secondary to Raffles Place and Marina Bay, with older office buildings erected on smaller footprints and being home to few- er multi-national corporations,” according to JLL. “This has changed in the last five years. Office stock in Tanjong Pagar has increased by 27% and its critical mass now outstrips both Raffles Place and Marina Bay, making it the biggest hub in the CBD.”
Over the next decade, new projects and redevelopment schemes will continue to transform the area. Prime office buildings are expected to make up 45% of Tanjong Pagar’s Grade-A office stock in 2027, up from 34% currently. The number of homes, hotel rooms and serviced apartments will also grow by 28%, based on projects in the pipeline.
“As rents and capital values are expected to continue to rise over the next five years, we expect land values to continue to appreciate in this locality,” says Regina Lim, JLL head of Asia Pacific Capital Market Research. “Due to the lack of government land sale sites for commercial use released in the CBD, developers will likely have to turn to redevelopment sites in the private market to create new office supply.”
This bodes well for International Plaza in its collective sale bid. “International Plaza is the gateway to Tanjong Pagar, which is the most ex- citing area in the CBD right now,” says Edmund Tie’s Swee. The new development will have a height of 250m, which will ensure that “high-floor units will have panoramic views of the city skyline”, she adds.
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