Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve List are not issued for tender instantly yet are at first offered for application. It will certainly be established for tender only when a property developer sends an application with an acceptable least possible rate.
Nevertheless, Wong did not anticipate that the Zion Road (Parcel B) site would certainly be activated so quickly, because the latest tender award of the Zion Street (Parcel A) site and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This could reflect developers’ assurance in the home purchasing need in this location, given the site’s attractive place near 2 MRT terminals and amenities such as the Great World City mall,” Wong notes.
Lee Sze Teck, top director of information analytics at Huttons Asia, concurs that the triggering of the spot might show property developers’ confidence in the site and in the property market, particularly for a pure household location than one that includes a long-stay serviced house aspect. “Selling residence homes is more simple and carries lesser problems contrasted to embarking on a more recent venture,” he observes.
A hidden property developer has generated the launch of a housing site, identified Zion Road (Parcel B), which are going to be launched for sale via public tender next month, according to an April 22 press release from URA.
Given that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “fairly conservative costs”, Wong opines that upcoming land proposals could regulate. She anticipates the Zion Road (Parcel B) spot to receive two or three proposals, and the top price might can be found in at approximately $1,150 to $1,250 psf ppr.
“Developers might additionally see the capacity of the places at Zion Road, and that there is sufficient need for residences in the area, in spite of potential competition from the River Valley Green (Parcel A) location,” Lee claims.
In this case, the spot was set off when the unmarked developer had submitted a quote not less than a minimal price of $604.57 million.
URA’s acceptance of this proposal rate is unsurprising, says Wong Siew Ying, head of analysis and material at PropNex Realty, given that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint project in between Singapore-listed property group City Developments and Japanese realty property developer Mitsui Fudosan, The joint venture provided a sole quote of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced condos with a minimal stay of three months, and can produce 1,170 housing units, including 435 long-term serviced residences.
Similarly, Lee anticipates up to three developers participating in the tender for Zion Road (Parcel B), with the leading tender for the site valued in between $1,100 and $1,200 psf ppr.
The 99-year leasehold place inhabits 0.9 ha and is expected to yield as much as 610 private non commercial units. With a maximum allowable gross floor area (GFA) of approximately 559,744 sq ft, the application cost figures out to a land rate of about $1,080 psf per plot ratio (ppr) based upon GFA. The site is nearby to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
She adds that the builder that triggered the Reserve List site might even be taking the opportunity to get the plot at a more assessed cost, in the middle of the cautious market belief.
