Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
An undisclosed property developer has recently triggered the release of a household site, labelled Zion Road (Parcel B), which will be released for sale via public tender next month, according to an April 22 press release from URA.
Given that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “fairly conservative prices”, Wong says that upcoming land proposals could moderate. She expects the Zion Road (Parcel B) site to obtain two or 3 quotes, and the leading rate could come in at approximately $1,150 to $1,250 psf ppr.
The 99-year leasehold place occupies 0.9 ha and is projected to generate as much as 610 private residential units. With a highest allowable gross floor area (GFA) of approximately 559,744 sq ft, the application cost figures out to a land price of about $1,080 psf per plot ratio (ppr) based on GFA. The location is near to Great World and Havelock MRT stations, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
In this case, the location was caused when the unnamed property developer had actually submitted a proposal not less than a minimal amount rate of $604.57 million.
URA’s acceptance of this quote cost is unsurprising, claims Wong Siew Ying, head of research and material at PropNex Realty, considered that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was allocated earlier this month to a joint venture in between Singapore-listed building group City Developments and Japanese real estate property developer Mitsui Fudosan, The joint venture handed in a sole bid of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced flats with a minimum stay of 3 months, and can yield 1,170 housing units, including 435 extended serviced apartments.
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve List are not issued for tender right away but are originally offered for application. It will be set up for tender only when a developer sends an application with an appropriate minimum rate.
In the same manner, Lee anticipates approximately 3 property developers taking part in the tender for Zion Road (Parcel B), with the top bid for the area valued in between $1,100 and $1,200 psf ppr.
Lee Sze Teck, top director of data analytics at Huttons Asia, agrees that the triggering of the site might reflect developers’ confidence in the site and in the property market, especially for a pure domestic location than one that includes a long-stay serviced home aspect. “Promoting residential homes is a lot more straightforward and lugs lower dangers contrasted to undertaking a newer endeavor,” he observes.
“Developers may likewise view the capability of the areas at Zion Road, and also there is adequate interest for houses in the location, in spite of possible competitors from the River Valley Green (Parcel A) location,” Lee claims.
She includes that the builder that activated the Reserve List site can additionally be taking the possibility to get the plot at a more measured rate, in the middle of the alert market sentiment.
However, Wong did not assume that the Zion Road (Parcel B) place would certainly be prompted so quickly, in view of the recent tender grant of the Zion Road (Parcel A) site and a close-by housing plot in River Valley Green (Parcel A) that is still open. “This can show developers’ confidence in the home purchasing need in that location, granted the location’s appealing location near 2 MRT stops and services such as the Great World City mall,” Wong notes.
