Allgreen Properties, a well-established real estate developer in Singapore, has made a significant move with its acquisition of the Zion Road (Parcel B) site. The company secured the plot with a top bid of S$730.09 million, which works out to about S$1,304 per square foot per plot ratio (psf ppr). This bid was the highest among two offers received during the Urban Redevelopment Authority’s (URA) tender, which closed on July 18, 2024. The second-highest Promenade Peak Condo bid came from a consortium led by Intrepid Investments and Hong Realty, part of the Hong Leong Group, who offered S$660.8 million, or S$1,181 psf ppr.
The Zion Road (Parcel B) site, located in the highly desirable River Valley area, is designated for residential development, with an estimated potential to yield approximately 610 private homes. This site was made available through the reserve list of the first-half 2024 Government Land Sales (GLS) programme, triggered after a developer submitted a minimum bid commitment of S$604.6 million. The development of this land will add to the vibrant mix of residential and commercial spaces already in the River Valley precinct.
Allgreen Properties, controlled by the Kuok family, has a long-standing presence in Singapore’s real estate market. The company is known for its extensive portfolio that spans residential, commercial, and mixed-use developments. Its acquisition of the Zion Road (Parcel B) site is a strategic move that complements its other assets in the area, such as the nearby Great World City mixed-use development. This synergy offers Allgreen an opportunity to further solidify its presence in this prime district.
The tender results reflect a careful approach by developers, who are navigating a market characterized by high financing costs and ongoing property cooling measures. Despite the challenges, the top bid for the Zion Road (Parcel B) site came in 1.6% lower than the bid for the adjacent River Valley Green (Parcel A) site, which was awarded to Wing Tai Holdings. However, it was 8.5% higher than the bid for the neighboring Zion Road (Parcel A), secured by City Developments Limited and Mitsui Fudosan.
The River Valley area, which includes both Zion Road and River Valley Green sites, is set to see a notable increase in residential offerings. With the addition of these developments, the area could accommodate more than 2,700 new private homes. While this growth raises concerns about market oversupply, the strategic location near key amenities, transport hubs, and popular commercial destinations ensures that the area remains an attractive proposition for both developers and investors. The prospects for the River Valley district continue to look promising despite broader market conditions.