Huttons’ comments on Zion Road (Parcel B) triggered for sale

22 April 2024

The last pure residential site triggered for sale from the Reserve List may be at Sims Drive in 2018 which was developed into Penrose.

There are 3 key takeaways from the triggering of the site from the Reserve List.

One, it shows that developers are more inclined to bid for a pure residential site than one that incorporates a long stay serviced apartment (SA2) element which is why they triggered the site right after the Zion Road (Parcel A) site was awarded. Selling residential homes is more straightforward and carries lesser risks compared to undertaking a newer venture.

Two, developers see the potential of the plum sites at Zion Road. If awarded, the two sites at Zion Road can yield up to 1,345 residential homes. There will be another parcel of land at River Valley Green (Parcel A) which can be built into a 380-unit project. Despite the potential competition, developers hold the view that there is sufficient demand for homes in this area.

Third, the triggering of a site for sale may signal a gradual return of confidence by developers in the property market.

The tender may see up to 3 developers participating and the top bid for the site may be between $1,100 and $1,200 psf ppr.