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, says Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was granted earlier this month to a joint project in between Singapore-listed property group City Developments and Japanese real estate property developer Mitsui Fudosan, The joint venture provided a single proposal of $1.107 billion. The 99-year leasehold area is the first to pilot long-stay serviced apartments with a minimum stay of three months, and can yield 1,170 housing units, including 435 continued serviced homes.
Nonetheless, Wong did not assume that the Zion Road (Parcel B) place would be activated so soon, because the latest tender grant of the Zion Street (Parcel A) site and a nearby non commercial plot in River Valley Green (Parcel A) that is still open. “This could mirror property developers’ assurance in the home buying demand in that area, granted the site’s enticing place near two MRT stops and amenities such as the Great World City shopping mall,” Wong notes.
She includes that the builder that triggered the Reserve List site might even be taking the opportunity to make an application for the plot at a more assessed rate, amidst the careful market belief.
In the same manner, Lee expects as much as 3 property developers taking part in the tender for Zion Road (Parcel B), with the leading offer for the place valued in between $1,100 and $1,200 psf ppr.
The Zion Road (Parcel B) plot is a reservation area on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not issued for tender immediately but are initially made available for application. It will certainly be set up for tender only when a developer sends an application with a reasonable minimum rate.
The 99-year leasehold site inhabits 0.9 ha and is anticipated to generate approximately 610 exclusive non commercial units. With an optimum permissible gross floor surface area (GFA) of about 559,744 sq ft, the application price works out to a land charge of about $1,080 psf per plot ratio (ppr) based on GFA. The area is nearby to Great World and Havelock MRT stations, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
“Developers might likewise view the potential of the places at Zion Road, and also there is sufficient need for homes in the location, in spite of potential competitors from the River Valley Green (Parcel A) site,” Lee states.
In this situation, the location was triggered when the unnamed developer had actually sent a bid not less than a minimal amount rate of $604.57 million.
A hidden property developer has set off the launch of a housing site, labelled Zion Road (Parcel B), which are going to be started for sale via public tender next month, according to an April 22 press release from URA.
Lee Sze Teck, top director of data analytics at Huttons Asia, concurs that the triggering of the spot may reflect developers’ confidence in the site and in the real estate market, particularly for a pure residential site than one that incorporates a long-stay serviced apartment aspect. “Selling residence homes is extra simple and lugs minimal dangers contrasted to carrying out a more recent venture,” he observes.
Considered that the recent land tender end results at Zion Road (Parcel A) and Orchard Blvd have been “lacklustre” and awarded at “relatively conservative costs”, Wong suggests that upcoming land quotes might regulate. She expects the Zion Road (Parcel B) spot to obtain two or three quotes, and the top cost could can be found in at approximately $1,150 to $1,250 psf ppr.
