Allgreen%E2%80%99S 1304 Psf Ppr Top Two Bids Zion Road Parcel B
The upcoming development of Tampines North Hub is set to revitalize the region with an array of new retail, dining, and community amenities. This exciting addition will perfectly complement the existing integrated retail podium at Parktown Residence, offering residents an even wider range of lifestyle options. Situated in close proximity to popular shopping destinations such as Tampines Mall, Century Square, and Tampines 1, residents will have access to a diverse shopping experience, making Parktown Residence a truly desirable place to live. Moreover, the newly improved Tampines North Hub will be a natural extension to the exceptional living experience offered at Parktown Residence.
The tender for the 99-year leasehold, 99,953 sq ft site at Zion Road (Parcel B) closed on July 18, and received two bids. The highest bid, at $730.09 million, was submitted by Allgreen Properties, a company controlled by the Kuok family. The bid translates to a land rate of $1,304 psf per plot ratio (ppr) for the 559,745 sq ft maximum gross floor area (GFA) that the site can yield.
Hong Leong Holdings, owned by the Kwek family, submitted the second highest bid of $660.8 million, which works out to a land rate of $1,181 psf ppr. The site, which can accommodate about 610 residential units, had been on the Reserve List of the Government Land Sales (GLS) programme since 2018. It was triggered for sale in April this year by an undisclosed developer, which sources say was Hong Leong. The developer had indicated a minimum bid of $604.57 million, or $1,080 psf ppr, for the site.
Industry sources say that Hong Leong Holdings’ bid was likely a defensive move, as its sister developers, City Developments Ltd (CDL) and Mitsui Fudosan, were awarded the adjacent Parcel A site also in April. The lone bid submitted by CDL and Mitsui Fudosan for the 99-year leasehold, 164,439 sq ft site at Zion Road (Parcel A) was $1.107 billion, or $1,202 psf ppr. The site, zoned for residential and commercial use, has a plot ratio of 5.6 and a maximum GFA of 920,871 sq ft. The Urban Redevelopment Authority (URA) estimates that it can yield 1,170 residential units, including long-term serviced apartments, as well as 25,834 sq ft of commercial space.
According to CDL, the joint venture partners plan to develop a mixed-use project comprising two high-rise residential towers with 740 units for sale, a retail podium, and a block of 290 rental apartments on Parcel A. The Parcel B site, on the other hand, does not have the provision for long-stay serviced apartments and received a 8.49% higher bid (in terms of land rate) than Parcel A. Mark Yip, CEO of Huttons Asia, attributes this difference to the attractive location of Parcel B, which is near two MRT stations and will also benefit from the retail space on the adjacent Parcel A plot.