Tender for Zion Road B site could see bids reaching up to $700m: analysts

The site can yield 610 new homes when developed.

The tender for Zion Road (Parcel B) will likely attract one to two bidders and receive a top offer ranging from $644m to $700m, according to PropNex.

Wong Siew Ying, research and content head at PropNex expects developers to “proceed with caution” in bidding for the site considering the deluge of new private housing supply in the area.

The Urban Redevelopment Authority on Monday launched the tender for Zion Road (Parcel B), making the site that was previously on the reserve list, now available for sale. In a surprise move last month, a developer committed to participate in the tender and submit a minimum bid price of at least $604.6m.

Wong said the joint venture between CDL and Mitsui Fudosan will likely participate in the tender to maintain their lead in the area. PropNex’s estimated land rate works out to $1,150 to $1,250 psf ppr, a tad higher than the estimated $1,150 to $1,250 psf ppr land cost by Huttons Asia.

The site can yield 610 new homes when developed, on top of the combined 1,550 new homes that can be generated once the adjacent Zion Road (Parcel A) plot and nearby River Valley Green Parcel are developed.

“This site is in a plum location just minutes' drive away from the CBD. It is close to Great World City mall, the upcoming retail space at Zion Road (Parcel A) and Zion Road food centre. It is a short walk to Havelock and Great World MRT stations. River Valley Primary School is within 1km of the site,” Huttons senior director for data analytics at Lee Sze Teck said in a note Monday.

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