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News Release

Singapore

Jones Lang LaSalle’s Perspective: Land Use Plan to Support Singapore’s Future Population



More land set aside for housing and commerce


​SINGAPORE, 31 January 2013 – The Ministry of National Development (MND) released the land use plan following the recent White paper on the future population in Singapore.

This timely release by the state agency provides greater transparency on the infrastructural plans and allays any potential market fear on the ability of the island state to accommodate this long term population of 6.9million.

The key takeaway from this new land use plan is the increase in land mass of 8% from 2010 to 2030, presumably from reclamation particularly along the East Coast and Changi and Pulau Tekong. The bulk of the increase is in areas set aside for Ports and Airports which is increasing from 2,200 ha to 4,400 ha. Land set aside for utilities will increase by 41% while those for commercial/industrial and housing are expected to increase by 32% and 30% respectively (see Figure 1).


To support the overall growth in population, new areas have been identified : Bidadari, Tampines North, and Tengah. Given the current market trend, Tampines North, Bidadari and infill development within mature housing estates such as Dawson Estate and East Coast will be more popular.

While we welcome the planned addition of the Jurong Region Line and extension of the Northeast Line as they will improve the overall accessibility to the future Tengah and Punggol towns, we cannot emphasise the need to have a coordinated completion of such public infrastructure with the developments to mitigate any potential overloading of the existing system. While the overall rail density would eventually match those in London, what is equally important is the service and reliability of this rail system. 






Figure 1: Rate of Change by Key Land Uses


Source: Jones Lang LaSalle


Another concept that caught our attention is the creation of more commercial nodes i.e. the North Coast Innovation Corridor and the Southern Waterfront City. Of the two, the Southern Waterfront City could gain more popularity given the proximity to the city center and the existing commercial node in the Harbour Front area. The reintroduction of Seletar as another regoinal centre is worth watching given the growing aerospace industry in Singapore. While the North Coast Innovation Corridor is a long term plan, it could see some heightened interest should the development of the Iskandar region gather greater speed.  

Overall, we welcome the transparency of this announcement of the land use and infrastructure plan. With a population expected to reach 6.9million by 2030, the density per unit area by different land use group will naturally rise. For residential, the density will move from 508 to 531 persons per ha while in industry/commerce it could move up from 523 to 539 persons per ha. The level of Parks and Nature Reserves could also see an increase from 891 to 952 persons per ha.

Dr Chua Yang Liang, Head of Research South East Asia and Singapore, Jones Lang LaSalle says “While these indicators suggest a higher density of person per unit area, there will be an opportunity for the real estate industry to innovate and create more conducive urban environment through clever urban designs and integration of complementing land uses such as the injection of greater green and public spaces into the urban fabric to mitigate this density. To this end, we eagerly await the articulation of these broad strategic concepts into development concepts at the review of the Master Plan in 2013” he added.

 





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Notes to editors
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management. For further information, visit www.jll.com
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,100 employees operating in 78 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.ap.joneslanglasalle.com
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