SINGAPORE – New homes are set to be built on two land parcels in Zion Road that were part of a Selective En bloc Redevelopment Scheme (Sers) site. Industry observers say some of these homes could be Housing Board flats under the prime location public housing (PLH) model.
On Friday, the Urban Redevelopment Authority (URA) published a proposed amendment to its master plan that primarily involved changes to the two adjacent land parcels in Havelock that occupy an estimated 2.3ha in total – just over the size of three football fields.
URA said it intends for the parcels – separated from Great World mall by Alexandra Canal – to be used for high-density residential developments with supporting amenities, such as commercial units and an upcoming park beside the canal.
In URA’s proposed master plan amendment, the southern land parcel, about 1.45ha, has been proposed for residential use with commercial units on the first floor, at a plot ratio of 5.6. The parcel is currently zoned for hotel use with a plot ratio of 3.8.
Based on these parameters, property portal Mogul.sg’s chief research officer Nicholas Mak said the parcel could yield about 800 to 850 apartment units.
The northern plot, zoned for residential use, is about 0.9ha under the proposed amendment and will be developed at a plot ratio of 5.6 – up from the current 3.8. Mr Mak added that about 500 to 550 units could be built.
He believes that both parcels are likely to be sold via tenders for private condominium developments under the Government Land Sales (GLS) programme as this will allow the state to reap the highest economic value from the site.
PropertyGuru Singapore country manager Tan Tee Khoon said there may be a mix of public and private homes when the site is developed, as the Government has emphasised the need for inclusivity in prime areas to prevent society from becoming stratified.
Mr Mak, highlighting that the site is about 2km from the Central Business District, said that should an HDB Build-To-Order (BTO) project be launched, it will fall under the PLH model, which aims to keep prime area flats affordable and prevents buyers from enjoying excessive profits should they sell their flats in the future.
Huttons Asia senior director of research Lee Sze Teck agreed, noting that a BTO project about 300m from the parcels – the 869-unit Havelock Hillside that was launched in August 2022 and slated for completion in end-2028 – falls under the model.
He pointed out that the southern Zion Road parcel shares similar attributes to the first projects under the PLH model – River Peaks I and II in Jalan Besar. The Jalan Besar parcels are zoned for residential use with commercial units on the first floor, and will give residents direct access to an MRT station.
More BTO flats are set to be launched in Bukit Merah – which encompasses the two Zion Road parcels – in August 2023, but it is not known if they will be sited on either of the two parcels. The parcels are also not on the current list of GLS sites, which is updated twice yearly, with the last update in December 2022.
Bounded by the canal as well as Zion, Kim Seng and Havelock roads, the two parcels are on a site formerly occupied by five blocks of Housing Board flats that were cleared around 2013 as part of a Sers project.
Demolished at about 40 years old, the blocks – 88 to 92 Zion Road – were home to 636 households, who were offered new flats in the Havelock View BTO project, about 500m away.
Construction of Havelock MRT station on the Thomson-East Coast Line then took place on the Sers site, and it opened in November 2022. One of the exits currently leads to the southern land parcel.
The area is well supported by amenities such as Great World mall, Tiong Bahru Plaza and Zion Riverside Food Centre, and close to Tiong Bahru, Havelock and Great World MRT stations.
As most of the existing flats in the area are relatively older, demand for new launches could also come from residents of these flats who are looking for an upgrade, said Mr Tan of PropertyGuru.
Mr Mak, referencing median prices of $2,842 per square foot in the past 16 months for Riviere, a 455-unit condominium that was completed in January and is about 200m from the two parcels, said real estate prices in the area are high. He cautioned that any new GLS launch could add heat to an already-hot property market.
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