The Urban Redevelopment Authority released a Zion Road land for sale after receiving a request committing to bids not less than $604.6m.

The launch of the Zion Road (Parcel A) tender comes after URA sold a larger site adjacent to Zion Road. This was awarded by a City Developments Limited and Mitsui Fudosan Joint Venture (JV) for $1.1 billion or $1,202 sq ft/per plot ratio.

CDL Mitsui’s offer for Parcel A was below expectations, and 30% lower than an equivalent state land site located across the street.

Zion Road, parcel B, is taken off the reserve list for the Government Land Sales programme (GLS), in the first half year of 2024. Reserve list plots will only be made available for sale when a developer offers a price below the Government’s minimum and there is enough market interest.

URA announced that a developer submitted an application to submit a bid for a minimum of $604,567.890. URA declined to reveal the identity of developer.

The minimum price of 604.6 million dollars translates into an average land rate of $1,080 psf per plot ratio. This is 10% less than Parcel A, where the price was $1,202 psf per plot ratio.

Terra Hill condo near Pasir Panjang MRT

The second Zion Road is smaller than its first counterpart and doesn’t require that a new serviced apartment category – SA2 – be built as part the development.

Parcel B is less risky to develop without the SA2 component, and it comprises approximately 60% of Parcel A’s GFA. This should justify a higher rate of land. “We expect the CDL Mitsui JV, which is defending this area, to be more interested and for developers to show interest in this prime site,” said Ms Song.

CBRE predicts there will be between three and four bids, with the top price ranging from $1.300 psf per plot ratio (ppr) to $1.380 psf per plot ratio, or $730 million to 770 million.

The land parcel on Zion Road has an area of 9,285.9 m2 and a maximum floor area of 52.002 m2.

The government plans to offer 5,450 residential apartments via the confirmed lists of the first half 2024 GLS Programme. This is the biggest supply of confirmed-list units since the GLS second-half programme in 2013.

The deadline for the tender is July 2024.