URA releases Zion Road site after developer commits $604.6m

After receiving a bid of at least $604.6 million, the Urban Redevelopment Authority has made a Zion Road property available for sale.

The tender launch for Zion Road parcel B follows the recent sale by URA of a larger adjacent site in Zion Road to a City Developments Limited – Mitsui Fudosan joint venture (JV), which received $1.1 billion at their sole bid, or $1.202 per square foot per plot ratio.

CDL Mitsui’s bid was 30 percent lower than the state land site adjacent to the Parcel A parcel.

Zion Road (Parcel A) is removed from the Reserve List in the Government Land Sales Programme (GLS) for the first half 2024. Reserve list plots can only be released for sale if the developer submits an offer that is acceptable to both the Government and market demand.

URA stated that the developer had submitted a commitment to bid at a minimum price of 604,567.890 after making a request to do so. The URA did not reveal the name of the developer.

The Chuan Park

The minimum price is $604.6 million, which translates into a land rate around $1,080 per square foot per year, or 10 percent less than Parcel A’s $1,202 per square foot per year, according to Ms Tricia song, CBRE’s head of Singapore and South-east Asia research.

The second Zion Road development site is smaller and less expensive than the first. It does not require the construction of a new type of serviced apartment, called SA2, as part of its development.

Parcel B, which comprises about 60% of Parcel A’s GFA (gross-floor area), presents a lower risk of development and therefore should be valued higher. We expect that the CDL Mitsui JV will be interested to defend the area and that more developers will be interested in the plum site,” stated Ms Song.

CBRE expects three to four offers for the plot. The top bid could range from $1,300 per square foot per year to $1,380, which is about $730 to $770 millions.

The site area in Zion Road is 9,285.9 square meters and the maximum gross floor area is 52,002 square meters.

The Government plans to release 5,450 residential units via the confirmed list for the first half of 2024 GLS program. The largest number of units on the confirmed list since the second half 2013 GLS program.

The bid will close on July 20, 2024.

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