URA releases Zion Road reserve list site for at least 604.6m

The Urban Redevelopment Authority, (URA), has released a Zion Road Site for Sale from its Reserve List after receiving an application that committed to a maximum bid of $604.6 Million.

The launch of Zion Road’s (Parcel B), follows URA’s sale of an adjacent larger site on Zion Road. That site was sold to a City Developments Limited/Mitsui Fudosan JV at its single bid of $1.1billion, or 1,202 dollars per sq ft and per plot ratio.

CDL Mitsui bidder for Parcel A fell 30 per cent below the comparable state land across the road.

Zion Road parcel B is released from the Government Land Sales program (GLS) reserve list during the first six months of 2024. Reserve list parcels are only released for sales if a developer makes an offer at a minimum price acceptable to the Government, and if market interest is high enough.

URA reported that a developer committed to submitting a bid of at least $604,567.890 for the reserve Zion Road, which could yield 610 new homes. It did not identify the developer.

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The $604.6m minimum price translates to about $1.080 psf/ppr. This is 10 percent lower than Parcel A at $1.202 psf/ppr.

The second Zion Road property is smaller than that of the first and it does not include a requirement for a brand new category of serviced flats – SA2 as part of the project.

Parcel B presents lower development risks and should therefore warrant a higher price for land. We expect CDL-Mitsui JV’s interest in defending the site, and more developers interested in this plum location,” said Ms Song.

CBRE estimates that three to four bids could be made for the plot. A top bid of $1.300 per square foot ppr up to $1.380 per square feet ppr or approximately $730-$770 million is expected.

The land parcel at Zion Road measures 9,285.9 sqm with a maximum gross area of 52.002 sqm.

The tender coincides with the government’s plans to provide 5,450 units of residential housing via the GLS confirmed list in the first half. This is by far the largest amount of confirmed list housing since the second-half GLS programme.

The tender will end in July 2024.

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