Despite the economic downturn, JTC is planning to develop in Jurong the International Business Park (IBP) in anticipation for uptick in demand of industrial space after the recession. The developer plans to expand the park by 20% and increase plot ratios in selected areas.
“We are expecting a surge in demand for business park land in this area in the next economic upturn, which land intensification on existing IBP land alone would not be able to address,’ said a company spokesperson.
Five parcels, totalling to five hectares, will be added in the southern section of the park. At a 2.5 plot ratio, the project will generate 125,000 sq. m. of new industrial space.
The developer is being prompted by IBP tenants to maximize the use of land. The park has a high occupancy rate, estimated at 90%. In response, JTC plans to increase the plot ratio from 1.4–2.5 around the 14.8 hectares of land.
The Singaporean government will also construct two roads that direct traffic to Pan Island Expressways and the Ayer Rajah from the IBP. The company estimates that the construction projects may take 3 to 4 years to finish. The redevelopment is in line with the 2008 Master Plan of the Urban Redevelopment Authority (URA), which aims to develop in Jurong a commercial hub.
JTC shuns economic forecast and takes a positive look on Jurong commercial real estate sector. Even some property analysts are optimistic of the marketability of the upcoming IBP properties. Lim Kien Kim, head of industrial business space at Knight Frank, believes that IBP is likely to attract companies that would like to cut their rental costs by relocating outside the central business district.