Psalms 69:35

For God will save Zion, and will build the cities of Judah: that they may dwell there, and have it in possession.

Mount Zion is David's city within Jerusalem in Judah, and Judah is called God's sanctuary only because His dwelling lay within its territory, not because the tribe or land itself was the sanctuary.
The psalm is prophetic of Christ in His betrayal, condemnation and crucifixion when the sins of the world rested upon Him, with portions such as verses 9 and 21 fulfilled in Him, though not every verse applies to Him since verse 5 pressed rigidly would make Him a sinner.
It stands among the cursing psalms with Psalms 109 and 137 as predictive of tribulation upon the enemies of the church rather than vindictive revenge, revealing a God who hates sin and executes retributive justice that the universe approves when punishment is decided for Satan and his followers.
Its closing words are a prophecy of Christ's kingdom in which God saves and restores His people, turning reproach into heavenly praise.
The verse also stands as a simple record of David's experience that Christians whose lives run parallel to his in being hated without a cause may appropriate as fulfilled in a different sense from the fulfillment of a prediction.

Psalm Context and Meaning

Mount Zion is the city of David and a part of Jerusalem located in Judah as one of its cities, and Judah is called Mount Zion only because that mountain lay within that tribe's territory. Biblical descriptions of Judah as God's sanctuary are figurative, and they prove that Judah was the tribe with which God located His habitation and His sanctuary, not that the tribe or land itself was the sanctuary.

The verse stands in one of the psalms called the cursing psalms, together with Psalms 109 and 137, which are typical of tribulation on the enemies of the church and are predictive rather than prayers of vindictive revenge. They present a God who hates sin and executes retributive providence and justice against sinners. The verse belongs to a psalm that is prophetic of Christ's experience, to be read in connection with His betrayal, condemnation, and crucifixion when the sins of the world rested upon Him, and its meaning is understood with reference to Christ. Its prophetic use supports the inspiration of the imprecatory psalms.

The psalm relates primarily to David and finally and antitypically to Christ, and portions such as verses 9 and 21 are quoted in the New Testament as fulfilled in Christ. Yet not every verse can be applied to Christ, since verse 5 applied to Christ would make Him a sinner. The psalm applies literally to Christ as the New Testament states, yet not every part applies to Him, for pressed rigidly throughout it would make Christ a sinner. A prophecy may apply partly to what is immediately before the reader and partly to what is remote, so use of one text in an accommodated sense does not force the whole prophecy or context to be accommodated, and literalness in one part does not force literalness in the whole.

By contrast, it is also taught that the verse is not a prediction but part of a simple record of David's experience, and it does not belong to Jesus in any special way more than to anyone today whose life runs alongside David's in points such as being hated without a cause. The verse can be applied as an appropriated quotation when a Christian's history runs parallel to David's, and such appropriated use is a fulfillment of Scripture in a different sense from the fulfillment of a prediction.

Salvation Promise and Application

For God will save Zion and build the cities of Judah stands in the closing prophecy of Christ's kingdom. Taken together with the verses around it, it affirms God's justice, declaring that when the sentence of punishment is fixed upon Satan and his followers the whole universe will approve the decisions of the heavenly tribunal. It presents God as the one who saves and restores His people, joined to a plea for Him to answer and save and to the confidence that present reproach will give way to heavenly praise. The psalm to which it belongs is prophetic of Christ's experience, and its prayers may be prayed by God's children with assurance that God hears them, while the triumph Christ won becomes theirs as well.