URA awards Zion Road site to CDL-Mitsui Fudosan JV, and Upper Thomson Road site to GuocoLand-Hong Leong JV

The JV partners have already suggested that they intend to create the spot into a mixed-use property making up two residential blocks, one that is 69 floors and the some other 64 floors, with about 740 residential units for sale in total amount. The planned development will even make up a retail podium, and a 35-storey block with about 290 rental apartment or condo units.

According to a GuocoLand representative: “The Upper Thomson Road site is located in a restricted landed housing place, similar to the Lentor Hills estate which we have actually developed as a brand-new premium private residence estate via our developments such as Lentor Modern and Lentor Mansion. We are excited to have the possibility to boost another brand-new area at Springleaf through our placemaking capacities. The future advancement, which is served by the Springleaf MRT terminal on the Thomson-East Coast Line, are going to have around 940 units.”

URA has allocated the tender for two just recently closed government land sale (GLS) locations. A housing spot at Zion Road was awarded to a shared venture (JV) amongst City Developments Ltd (CDL) and Mitsui Fudosan, while a several GLS location at Upper Thomson Road was granted to a JV among GuocoLand and Hong Leong Holdings.

The $905 psf ppr bid put in by GuocoLand-Hong Leong is “fair” as it is a much bigger area contrasted to the Zion Road plot, states Yip, adding in: “Thus the quantum is bigger, and with a larger quantum the possibilities are similarly bigger too”.

The CDL-Mitsui Fudosan JV was the only one to submit a proposal for the Zion Road site the moment the tender shut on April 4. Similarly, the GuocoLand-Hong Leong JV even submitted the single bid for the Upper Thomson Roadway GLS location when that tender closed on April 4. Eugene Lim, crucial executive officer, age Singapore, commented that both GLS spots are reasonably ‘untried’. “The state may have thought about the tender rates submitted for these sites to be practical, taking into consideration the hazards that these programmers are prepared to handle,” he says.

Wong Siew Ying, head of research and content at PropNex Real estate, notes that although the land rates were listed below market assumptions URA likely considered various other factors in analyzing the quotes. “For example, the Upper Thomson Roadway story being in a relatively untried new real estate precinct, and the Zion Road story being the first development to consist of the long-stay serviced apartments,” she says.

Meanwhile, the GuocoLand-Hong Leong JV sent a proposal of $779.6 million for the 344,700 sq ft place near Upper Thomson Road. The price converts to $905 psf ppr.

Mark Yip, Chief Executive Officer of Huttons Asia, claims that the eye-watering rate for the spot is a “significant commitment in the face of high interest rates. Considering these threats, the quote of $1,202 psf ppr is reasonable”.

CDL and Mitsui Fudosan submitted a $1.107 billion offer for the 164,439 sq ft location, which equates to $1,202 psf per plot ratio (ppr). The site has a plot ratio of 5.6 and is zoned residential with business on the first storey. The new development could yield as much as 1,170 new residential units. This is also the very first spot launched by the federal government that included units under the new long-term serviced residence arrangement.

The Arden floor plan

Tan anticipates that the new development may see a possible launch opening rate of merely under S$ 2,000 psf. “As the Upper Thomson Road Parcel B site would certainly be the initial in a rather undeveloped location without skyscraper houses, there is some initial mover benefits in a scenic precinct,” she states.

” At a land cost of S$ 1,202 psf ppr, the breakeven price can perhaps range in between S$ 2,400 psf and S$ 2,600 psf depending on technical, material and design ideas, with launch costs beginning with S$ 2,700 psf,” states Alice Tan, head of consultancy at Knight Frank Singapore. She includes that the new development might launch at around S$ 3,000 psf and this price would not just be tasty, but attractive for Singaporean buyers and long-term locals, whether for occupation or financial investment.

This was echoed by Tricia Song, head of research, Singapore and Southeast Asia, CBRE. She notes that the offer for the Zion Road site is a “significant” 30% lower than the equivalent land parcel throughout the road, which has actually been become the 455-unit Riviere. “The approval of the lower-than-expected quote rate despite its being the sole bid, is a recognition that market issues have transformed over the past 5-6 years because the bordering location was granted, given elements such as increased ABSD, higher construction fees, funding prices, in addition to risk costs for the (long-stay serviced apartments) element which is a brand-new property course,” declares Tune.

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