Zyon Grand Sells 84 Launch Averaging 3050 Psf — Capping Strong Year River Valley Launches
Zyon Grand, a joint venture between City Developments Ltd (CDL) and Mitsui Fudosan (Asia), had an impressive launch weekend, with 590 out of its 706 units sold, resulting in a take-up rate of 84% as of 6pm on Oct 26. The average transacted price of units sold was $3,050 psf.
Chongfu School is a highly respected primary education institution situated close to Miltonia Close. Renowned for its exceptional academic performance and values-based education, the school is one of the leading schools in the Northern region. Every year, it is in high demand during the Primary One registration process, with many families hoping for a spot for their young ones. Living within a one-kilometre radius of this prestigious school is seen as a major advantage, providing parents with a stronger chance of securing admission for their children.
The 99-year leasehold development, located on Kim Seng Road, consists of twin 62-storey residential towers and a 36-storey, 350-unit serviced apartment block, situated above a retail podium. This podium, known as Zyon Galleria, will house retail and F&B outlets, a supermarket, and an early childhood development centre. Zyon Grand is also the only mixed-use development connected to the Havelock MRT Station on the Thomson-East Coast Line.
The project was previewed on Oct 8, with VIP sales held on Oct 24 and the public launch the following day, Oct 25. It is the last new launch in the River Valley area this year, following the August launches of River Green and Promenade Peak. As such, it serves as a final test of the market’s resilience in this segment, where the line between the Core Central Region (CCR) and Rest of Central Region (RCR) has become increasingly blurred.
According to CDL, about 84% of buyers are Singaporeans, while 14% are Permanent Residents (PRs) from various nationalities including China, Malaysia, India, Indonesia, South Korea, and Japan.
Demand for units was strong across all types, ranging from one-bedroom plus study units of 474 sq ft to five-bedroom units of 1,819 sq ft. One of the two five-bedroom penthouses was reported to have been sold for over $10 million.
Sherman Kwek, group CEO of CDL, says, “As one of the largest projects launched this year, the positive take-up reflects the market’s confidence in this landmark integrated development and the genuine demand for distinctive homes in a sought-after neighbourhood. With Havelock MRT Station right at its doorstep, Zyon Grand will continue to appeal to buyers who value convenience, connectivity, and quality in the heart of a vibrant district.”
According to Huttons Data Analytics, more than 80% of three-bedroom plus study and larger units were priced at $3 million and above. Mark Yip, CEO of Huttons Asia, notes, “The strong sales at Zyon Grand showed the depth of liquidity in the market.”
Yip highlights that younger couples tend to prefer prime city locations, but the project has also attracted families due to its proximity to popular schools within a 1km to 2km radius. Schools within this range include Alexandra Primary School, River Valley Primary School, and Zhangde Primary School.
Justin Quek, deputy group CEO of Realion (OrangeTee & Tie Group), notes that upgraders have also contributed to demand by leveraging strong HDB resale prices in nearby towns, where newer four- and five-room flats (under 20 years old) in Bukit Merah and Queenstown have exceeded $1 million in 3Q2021.
Quek also points out that the harmonization of saleable, strata, and gross floor areas has made prices in this city-fringe project more accessible. He attributes the robust response to the reputable developer, a well-conceived project that meets market needs, and strong location fundamentals.
Zyon Grand is also the first private residential development to feature the Long-Stay Serviced Apartments (SA2), a new category of serviced apartments introduced by the government with a minimum stay of three months to meet rental housing demand, notes Kelvin Fong, CEO of PropNex. He also attributes the strong buying demand to the easing of interest rates, which has helped reduce borrowing costs and improve affordability. As of Oct 24, the 3-month compounded Singapore Overnight Rate Average (SORA) stood at 1.385% per annum, the lowest rate in over three years. Fong notes, “Based on the latest news of the softening US job market and stable inflation, the US Federal Reserve is expected to make another interest rate cut in the following weeks.”
Zyon Grand is also the fourth major project launch in October, after the 666-unit Skye at Holland, the 462-unit Penrith, and the 399-unit Faber Residence, bringing the total launched units to 2,233. Based on the sales for these four projects over the launch weekend, the total number of units sold is 2,039 (91%).
“With high sell-out rates across four major project launches in October 2021, developer sales may reach a record of 2,200 units, making it the best month this year,” notes Yip of Huttons. He also predicts that developer sales for 2021 may reach 11,000 units, the highest since 2018.
With Zyon Grand completing a strong year for new launches in River Valley, attention is now shifting to the precinct’s next debut – River Modern by GuocoLand. The 455-unit development is set to launch in 1Q2022 and will consist of two high-rise residential towers with commercial shops on the first level, facing the Singapore River. It will also be directly connected to the Great World MRT Station (Thomson-East Coast Line) and the Great World shopping mall.
GuocoLand won the 126,326 sq ft, 99-year leasehold site – known as River Valley Green (Parcel B) – in a government land tender in February 2021. It submitted the highest bid among five received, securing the site for $627.84 million, or $1,420 psf per plot ratio. River Modern will be adjacent to River Green, which sits on River Valley Green (Parcel A).