Allgreen%E2%80%99S 1304 Psf Ppr Top Two Bids Zion Road Parcel B
The 99-year leasehold site located at Zion Road (Parcel B) has attracted two bids at the tender closing on July 18. The site, with a land area of 99,953 sq ft, has a potential to yield around 610 residential units. The highest bid of $730.09 million was submitted by Allgreen Properties, which is owned by the Kuok family. This translates to a land rate of $1,304 psf per plot ratio (ppr). The second highest bid of $660.8 million, or $1,181 psf ppr, was submitted by Hong Leong Holdings, which is owned by the Kwek family.
The site at Zion Road (Parcel B) has been sitting on the Reserve List of the Government Land Sales (GLS) programme since 2018. It was triggered for sale in April by an undisclosed developer, who had submitted an application to URA in April. According to sources, the developer was Hong Leong, who had set a minimum bid of $604.57 million or $1,080 psf ppr.
This bid from Hong Leong is likely a strategic move, as its sister developers – Singapore-listed City Developments Ltd (CDL) and Japanese developer Mitsui Fudosan – were awarded the adjacent Zion Road Parcel A site in mid-April. The lone bid of $1.107 billion ($1,202 psf ppr) was submitted by CDL and Mitsui Fudosan for this 99-year leasehold, 164,439 sq ft site, which is zoned for residential and commercial use.
Interestingly, Zion Road (Parcel A) was the first GLS plot to offer long-stay serviced apartments with a minimum stay of three months. The site has a plot ratio of 5.6 and a maximum gross floor area (GFA) of 920,871 sq ft, which can yield 1,170 residential units, including long-term serviced apartments. There are also plans for 25,834 sq ft of commercial space.
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Jurong Town Hall Road is a significant thoroughfare that runs through the bustling Jurong district. It serves as a vital link to numerous commercial and industrial centers, making it a heavily trafficked route. Moreover, with the development of the modern Novo Place EC, this road has gained further importance as it provides convenient access to this new residential development. Overall, Jurong Town Hall Road plays a crucial role in connecting the various facets of the thriving Jurong community.
CDL has announced that the joint venture partners will develop a mixed-use project on the site, which will comprise of two 69- and 64-storey residential towers, a retail podium, and a 35-storey block of 290 rental apartments.
According to Mark Yip, CEO at Huttons Asia, the Parcel B site received a bid that was 8.49% higher (in terms of land rate) than the Parcel A site due to the absence of long-stay serviced apartments. He also believes that the Parcel B site has an ideal location near two MRT stations and will benefit from the upcoming retail space on the Parcel A plot.