$689m bid triggers sale of prime former Zouk site on URA’s reserve list

SINGAPORE – The Urban Redevelopment Authority (URA) announced on Friday (Sept 29) morning that it has accepted an application from a developer to put up for sale by tender a prime private housing land parcel, which was the site of the former Zouk at Jiak Kim Street.

The sale was triggered after a developer committed to bid at a price of not less than S$689.4 million for the 13,482 sq m site. It can accommodate 525 apartments in a development up to 36 storeys, with ground floor commercial use.

URA said it will launch the tender for the 99-year leasehold site in about two to three weeks. The tender period for the land parcel will be about six weeks.

The site was first made available for sale on the Reserve List of the Government Land Sale (GLS) programme in June 2017.

Separately, the URA also released detailed sales conditions on Friday morning for another Reserve List site at West Coast Vale.

The 19,591 sq m parcel can potentially yield up to 730 residential units.

On the Jiak Kim Street site, Desmond Sim, Head of CBRE Research, Singapore and South East Asia, noted that the plot will be launched for tender at a minimum price of S$1,250 per sf per plot ratio.

He said it was not surprising its sale was triggered, given the current positivity in Singapore’s residential market.

“Sites offered on the Government Land Sales Programme have always been a more favoured route for developers to procure land as they are offered unencumbered and the process is more straight forward,” he said.

That Jiak Kim is located in a better location is an added incentive, Mr Sim added.

“In addition, developers may be encouraged by the sales performance of developments in the vicinity. This plum site has the advantage of an almost 180-degree view of the Singapore waterfront.

“With the optimism around the residential market in the mid to long term, we expect 10 – 15 bids at possibly 30 per cent above the minimum bid,” he said.

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