Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold spot occupies 0.9 ha and is projected to yield as much as 610 exclusive non commercial units. With a maximum permissible gross floor surface area (GFA) of approximately 559,744 sq ft, the application cost works out to a land rate of around $1,080 psf per plot ratio (ppr) based on GFA. The site is close to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
In this situation, the spot was caused when the unnamed property developer had actually handed in a quote not less than a minimal cost of $604.57 million.
She adds that the developer that caused the Reserve List site could additionally be seizing the possibility to request the plot at a more measured cost, amidst the careful market view.
URA’s compliance of this bid rate is unsurprising, says Wong Siew Ying, head of research study and material at PropNex Realty, considered that it is less than the winning bid for a nearby Zion Road plot (Parcel A) that was granted earlier this month to a joint project between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint venture provided a single proposal of $1.107 billion. The 99-year leasehold area is the initial to pilot long-stay serviced flats with a minimum stay of 3 months, and can yield 1,170 housing units, including 435 continued serviced apartments.
The Zion Road (Parcel B) plot is a reserve area on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not published for tender instantly but are initially made available for application. It will be put up for tender only when a developer sends an application with a reasonable least possible price.
“Developers may additionally see the capacity of the places at Zion Road, and that there is good enough need for houses in the area, in spite of probable competitors from the River Valley Green (Parcel A) location,” Lee claims.
Lee Sze Teck, senior director of information analytics at Huttons Asia, agrees that the triggering of the site might reflect programmers’ confidence in the site and in the property market, particularly for a pure residential site than one that incorporates a long-stay serviced house component. “Promoting residential homes is more straightforward and brings minimal dangers compared to carrying out a more recent endeavor,” he observes.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “relatively conservative rates”, Wong suggests that upcoming land quotes might moderate. She anticipates the Zion Road (Parcel B) spot to get two or 3 proposals, and the top cost could be available in at near $1,150 to $1,250 psf ppr.
However, Wong did not assume that the Zion Road (Parcel B) place would be activated so soon, in view of the recent tender award of the Zion Road (Parcel A) area and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This could reflect property developers’ assurance in the home purchasing need in this area, granted the location’s attractive location near 2 MRT stops and features such as the Great World City mall,” Wong notes.
A confidential property developer has set off the launch of a household site, identified Zion Road (Parcel B), which will be launched offer for sale via public tender next month, according to an April 22 news release from URA.
In the same manner, Lee anticipates approximately three developers joining the tender for Zion Road (Parcel B), with the top bid for the area valued in between $1,100 and $1,200 psf ppr.
