The Zion Road (Parcel B) site under the Reserve List of the 1H2024 Government Land Sales (GLS) programme has been launched for tender, URA announced in a press release on May 13. The site is zoned for residential use and measures approximately 99,953 sq ft. The 99-year leasehold site can house about 610 units.
This is the first triggering of a site from the Reserve List since 2018. It comes after URA received an application from an undisclosed developer last month, with the developer committing to submit a bid not lower than a minimum price of $604.57 million. This works out to a land rate of about $1,080 psf per plot ratio (ppr).
The Zion Road (Parcel B) site follows the award of five GLS residential sites to date this year. The most recent site was the adjacent Zion Road (Parcel A), which was awarded to a City Developments Ltd (CDL)-Mitsui Fudosan joint venture on April 16. The consortium was the sole bidder for the 164,439 sq ft site and had submitted a bid of $1.1 billion, or $1,202 psf ppr.
The award of Zion Road (Parcel A) at $1,202 psf ppr gives developers clarity on the possible range of acceptable bids for the Parcel B site, says Lee Sze Teck, senior director of data analytics at Huttons.
To be competitive, the top bid for Zion Road (Parcel B) could be capped at $1,200 psf ppr, Lee notes. He anticipates up to three bidders, with the top bid coming in between $1,100 and $1,200 psf ppr.
The site is a few minutes’ drive away from the CBD. Among the nearby amenities are the Great World City mall, the upcoming retail space at Zion Road (Parcel A) and the Zion Road food centre. It is also a short walk to the Havelock and Great World MRT stations. River Valley Primary School is within 1km of the site.
Though the plot is attractive, Wong Siew Ying, head of research and content at PropNex, anticipates that developers will proceed with caution in view of the upcoming new private housing supply in the vicinity. The adjacent Parcel A plot and nearby River Valley Green Parcel A site can collectively yield up to 1,550 units, including 435 long-stay serviced apartments at Zion Road (Parcel A).
Wong expects the Zion Road (Parcel B) site to receive one or two bids, with the top bid to come in at around $644 million to $700 million. This translates to a projected land rate of between $1,150 and $1,250 psf ppr.
The tender for the site closes at noon on July 18. The closing will be batched with the two residential sites at Canberra Crescent and De Souza Avenue, which were launched on April 16 under the Confirmed List of the 1H2024 GLS Programme.
Credit: EdgeProp
