Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acknowledgment of this proposal price is unsurprising, states Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is less than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint venture in between Singapore-listed real estate group City Developments and Japanese real estate property developer Mitsui Fudosan, The joint project submitted an one proposal of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced apartments with a minimal stay of three months, and can generate 1,170 residential units, including 435 extended serviced flats.
She adds that the builder that activated the Reserve List site could even be taking the possibility to make an application for the plot at an extra measured rate, amid the alert market belief.
Nevertheless, Wong did not anticipate that the Zion Road (Parcel B) place would be set off so soon, because the latest tender grant of the Zion Road (Parcel A) area and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This can mirror property developers’ confidence in the home purchasing interest in this location, provided the location’s appealing location near two MRT stations and facilities such as the Great World City mall,” Wong notes.
Lee Sze Teck, top director of information analytics at Huttons Asia, concurs that the triggering of the site may reflect property developers’ confidence in the site and in the property market, specifically for a pure domestic location than one that includes a long-stay serviced house component. “Marketing residential homes is a lot more simple and lugs lesser problems compared to embarking on a more recent endeavor,” he observes.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve Listing are not released for tender instantly however are at first made available for application. It will be established for tender only when a builder submits an application with a reasonable least possible rate.
In this case, the site was set off when the anonymous developer had sent a bid not lower than a minimal price of $604.57 million.
The 99-year leasehold site occupies 0.9 ha and is projected to produce approximately 610 exclusive non commercial units. With a highest allowable gross floor area (GFA) of about 559,744 sq ft, the application price figures out to a land charge of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is close to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.
In a similar way, Lee expects up to 3 builders taking part in the tender for Zion Road (Parcel B), with the top bid for the place valued in between $1,100 and $1,200 psf ppr.
A confidential property developer has already generated the launch of a household site, identified 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.
“Developers might additionally see the potential of the sites at Zion Road, which there is sufficient demand for houses in the area, regardless of possible competition from the River Valley Green (Parcel A) site,” Lee says.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have been “lacklustre” and awarded at “relatively conservative costs”, Wong suggests that upcoming land bids might regulate. She expects the Zion Road (Parcel B) spot to get two or 3 proposals, and the leading rate could be available in at around $1,150 to $1,250 psf ppr.
