Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acceptance of this proposal cost is unsurprising, claims Wong Siew Ying, head of research study and material at PropNex Realty, given that it is lower than the winning bid for an adjacent Zion Road plot (Parcel A) that was granted earlier this month to a joint venture between Singapore-listed building group City Developments and Japanese property developer Mitsui Fudosan, The joint venture handed in a sole quote of $1.107 billion. The 99-year leasehold area is the very first to pilot long-stay serviced apartments with a minimum stay of three months, and can yield 1,170 housing units, including 435 long-term serviced flats.
She adds that the builder that activated the Reserve List site could even be seizing the opportunity to make an application for the plot at an extra measured rate, amid the cautious market belief.
“Developers may additionally view the capacity of the sites at Zion Road, which there is good enough interest for houses in the place, in spite of probable competition from the River Valley Green (Parcel A) site,” Lee states.
Nevertheless, Wong did not assume that the Zion Road (Parcel B) site would be set off so soon, in view of the recent tender award of the Zion Road (Parcel A) area and a close-by housing plot in River Valley Green (Parcel A) that is still open. “This could mirror developers’ confidence in the home purchasing need in that location, given the site’s enticing place near two MRT terminals and services such as the Great World City mall,” Wong notes.
The 99-year leasehold spot inhabits 0.9 ha and is projected to produce up to 610 exclusive residential units. With an optimum permitted gross floor surface area (GFA) of around 559,744 sq ft, the application rate figures out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The area is near to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.
A hidden developer has already set off the launch of a non commercial site, identified Zion Road (Parcel B), which are going to be released for sale via public tender next month, according to an April 22 press release from URA.
The Zion Road (Parcel B) plot is a reserve area on the 1H2024 Government Land Sales (GLS) programme. Sites under the Reserve List are not published for tender immediately however are initially made available for application. It will be put up for tender only when a property developer submits an application with an acceptable least possible price.
In a similar way, Lee anticipates as much as 3 property developers joining the tender for Zion Road (Parcel B), with the top offer for the area priced in between $1,100 and $1,200 psf ppr.
Considered that the current land tender end results at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “fairly conservative prices”, Wong believes that upcoming land bids could regulate. She anticipates the Zion Road (Parcel B) spot to obtain 2 or three proposals, and the top price could come in at around $1,150 to $1,250 psf ppr.
Lee Sze Teck, top director of data analytics at Huttons Asia, agrees that the triggering of the spot might show programmers’ confidence in the site and in the real estate market, especially for a pure residential site than one that includes a long-stay serviced home element. “Marketing residence homes is extra straightforward and brings lower risks contrasted to embarking on a more recent endeavor,” he observes.
In this situation, the location was triggered when the unnamed developer had actually submitted a bid not less than a minimum cost of $604.57 million.
