ST : Boost for Paya Lebar's hub status

28 Jan 2011,
Boost for Paya Lebar's hub status
By Cheryl Lim

THE transformation of part of Paya Lebar into a major city fringe commercial hub is a step closer after the first site in the area was launched for sale.

The land parcel at the junction of Paya Lebar Road and Eunos Road 8 is to boast mainly offices.

The new hub is called Paya Lebar Central. The Government aims to turn the area into a vibrant, pedestrian-friendly commercial hub including retail outlets and hotels, and attractive open spaces.

Overall, about 12 ha will be converted to commercial use, generating potential floor space of more than 5,381,955 sq ft.

The Urban Redevelopment Authority said the district will cater to businesses that do not need to operate within the city centre. It could become a sizeable fringe commercial centre.

The site now being offered is next to the Paya Lebar interchange station, which serves the Circle and East-West MRT lines.

The 159,866 sq ft commercial site sits in the heart of the district, and is just a 10-minute drive to the CBD. The site will be able to contain a maximum gross floor area (GFA) of 671,453 sq ft and can be built to a height of 64m above mean sea level.

At least 80 per cent of the GFA will need to be allocated to office use. The rest can also be used for other activities permitted under the commercial zoning. The tender will close on April 21.

Mr Ong Kah Seng, Cushman & Wakefield senior manager of Asia-Pacific research, anticipates good interest from developers, including those who traditionally stick to residential development.

He said they may 'wish to diversify their development and investment activities, as the office sector seems to be more stable in growth and requires less necessary government intervention to ensure supply-demand balance'.

The recent focus has been on prime offices, said Mr Ong. But the completion of other major suburban commercial sites, like Jurong Gateway, will see the emergence of a new tier of suburban offices in the next few years.