Tanjong Pagar set to be a compelling business hub for investors and corporates, says JLL
Growth of prime buildings and redevelopment to transform CBD’s largest hub
SINGAPORE, 12 August 2021 – The Shenton Way / Tanjong Pagar precinct (“Tanjong Pagar”) is expected to outperform Singapore’s overall CBD as new projects and redevelopment schemes continue to transform the area over the next decade, according to JLL Singapore’s latest ‘Tanjong Pagar – Singapore’s fast transforming downtown’ report.
The real estate consultancy forecasts that prime office buildings will make up 45% of Tanjong Pagar’s Grade A office stock in 2027, up from 34% currently, while the number of homes, hotel rooms and serviced apartments will also grow by 28%, based on projects in the pipeline.
Regina Lim, Head of Capital Markets Research, JLL Asia Pacific, explains: “Traditionally seen a secondary alternative to Raffles Place and Marina Bay, Tanjong Pagar has been home to older office buildings and fewer multi-national corporations. However, over the last five years, Tanjong Pagar’s office stock has increased by 27% and its critical mass now outstrip its CBD counterparts, making it the biggest hub in the CBD.”
According to JLL, Singapore’s policy efforts to encourage the development of a work-live-play CBD also resulted in a significant increase in residential, hotels and serviced apartments, particularly in the Tanjong Pagar area, where over half of the housing supply and more than 30% of the hotel and serviced apartment stock in the CBD are located.
Michelle Tee, Director, Research & Consultancy, JLL Singapore adds: “The new buildings in Tanjong Pagar are thoughtfully designed, efficient, and landscaped with urban parks, with a seamless connectivity to a robust transport infrastructure and surrounding developments. These factors have boosted the quantity and quality of occupiers, residents and visitors to the area, therefore achieving rents comparable to those located in Raffles Place and Marina Bay.”
The report reveals that these changes have been set in motion by the CBD Incentive Scheme launched by Singapore’s planning authority in 2019, which incentivises landlords in the Anson Road, Cecil Street, Shenton Way, Robinson Road and Tanjong Pagar to redevelop their aging office assets into mixed-use developments.
“New redevelopments, including AXA Tower, Keppel Towers and Fuji Xerox towers, are expected to be completed within the next few years. These new projects will contribute to the Grade A office options in the area and add more residential units, hotel rooms, serviced apartments as well as retail spaces to breathe life into and enhance the vibrancy of the locality,” concludes Ms Tee.
For more details, please download ‘Tanjong Pagar – Singapore’s fast transforming downtown’.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.