Zion Residence: 1H2024 GLS unveils first private housing site in Bayshore, but on the Reserve List

Zion Residence, the first private housing development site in the highly anticipated Bayshore waterfront neighbourhood, was revealed as part of the government’s 1H2024 Government Land Sales (GLS) programme. This 105,486 sq ft site on Bayshore Road is listed on the Reserve List. It will only be launched for public tender when a developer has made an indicated minimum price that is acceptable to the government.

About 70% of the planned residential units for Bayshore will be set aside as public housing. The release of this private housing site is expected to kickstart the development of the waterfront estate, potentially yielding 480 private residential units, according to the Ministry of National Development.

Tricia Song, head of research Singapore and Southeast Asia at CBRE, suggests that the attractiveness of the site and the potential first-mover financial gains created by Zion Residence may not deter developers from taking a more cautious approach towards the GLS release. “We do not expect this site to be triggered in the next six months. This could well be put on the Confirmed List later to kickstart the development of Bayshore.”

The last GLS site on Bayshore Road was awarded in 1997 and developed into Costa Del Sol, and an adjacent site was awarded in 1993 and developed into The Bayshore. According to Ismail Gafoor, CEO of PropNex Realty, the new Zion Residence site is linked to the upcoming Bayshore MRT station on the Thomson-East Coast Line, and most units are likely to offer unlocked views of East Coast Park and the sea.

Beyond offering easy access to the city centre, the Zion Residence also lies within walking distance of Fort Canning Park and the Singapore River. A vibrant green oasis amidst a sea of concrete, Fort Canning Park is home to various cultural events, activities, and lush foliage. Meanwhile, the Singapore River’s lush banks provide striking views of the city skyline, and make for a relaxing evening stroll.

Leonard Tay, head of research at Knight Frank Singapore, explains that the new GLS site has the potential to fetch a high premium given the development of the Long Island reclamation and development along the eastern coast of Singapore.

Desmond Lee, Minister for National Development, announced the new category of ‘long-stay’ Serviced Apartments in December. An industry circular fovernment identified two sites on the 2H2023 GLS list that has been shortlisted for SA2 – at Upper Thomson Road (Parcel A) and Zion Road (Parcel A).

Under the Confirmed List of 1H2024 GLS programme, a third long-stay Serviced Apartment pilot site on Media Circle in the one-north precinct is being released. This development is expected to yield 515 Zion Residence Serviced Apartments. Chia Siew Chuin, head of residential research at JLL Singapore, comments that this fully-SA2 site will allow developers to enter the rental accommodation market and cater to demand in the one-north and Singapore Science Park areas.

The URA circular states that the flexibility to experiment with new accommodation concepts and unit sizes makes SA2 developments a popular choice in areas with high rental demand, allowing developers to diversify development risks and create economies of scale. The Media Circle site provides an attractive opportunity for developers to build Zion Residence.