Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, concurs that the triggering of the site may show property developers’ confidence in the site and in the property market, especially for a pure household location than one that includes a long-stay serviced house element. “Promoting residential homes is more simple and carries lesser dangers compared to undertaking a newer endeavor,” he observes.
“Developers may also see the potential of the places at Zion Road, and also there is adequate interest for residences in the location, in spite of probable competitors from the River Valley Green (Parcel A) location,” Lee says.
Nonetheless, Wong did not assume that the Zion Road (Parcel B) site would certainly be activated so quickly, because the recent tender award of the Zion Road (Parcel A) area and a neighboring housing plot in River Valley Green (Parcel A) that is still open. “This might reflect property developers’ confidence in the home buying demand in this location, given the location’s enticing place near two MRT stops and amenities such as the Great World City shopping center,” Wong notes.
She includes that the builder that set off the Reserve List site can even be seizing the chance to get the plot at a much more measured cost, amidst the careful market belief.
Similarly, Lee anticipates up to three developers taking part in the tender for Zion Road (Parcel B), with the top offer for the site priced in between $1,100 and $1,200 psf ppr.
In this situation, the site was activated when the anonymous developer had actually handed in a proposal not lower than a minimum price of $604.57 million.
URA’s acceptance of this proposal price is unsurprising, says Wong Siew Ying, head of analysis and content at PropNex Realty, considered 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 project in between Singapore-listed building group City Developments and Japanese realty property developer Mitsui Fudosan, The joint venture handed in an one proposal of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced condos with a minimal stay of 3 months, and can generate 1,170 residential units, including 435 continued serviced flats.
The 99-year leasehold site inhabits 0.9 ha and is projected to produce approximately 610 private residential units. With an optimum permitted gross floor area (GFA) of approximately 559,744 sq ft, the application rate figures out to a land charge of around $1,080 psf per plot ratio (ppr) based on GFA. The site is nearby to Great World and Havelock MRT stations, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
Given that the current land tender end results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “fairly conservative prices”, Wong believes that upcoming land bids could regulate. She anticipates the Zion Road (Parcel B) site to receive two or 3 bids, and the leading rate might can be found in at near $1,150 to $1,250 psf ppr.
A concealed developer has recently set off the launch of a household site, identified Zion Road (Parcel B), which will be launched for sale via public tender next month, according to an April 22 announcement from URA.
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) programme. Spots under the Reserve List are not issued for tender immediately but are at first offered for application. It will be put up for tender only when a property developer sends an application with an acceptable least possible cost.
