Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A confidential developer has generated the launch of a housing site, labelled Zion Road (Parcel B), which are going to be released offer for sale via public tender next month, according to an April 22 news release from URA.
In the same manner, Lee expects up to 3 builders participating in the tender for Zion Road (Parcel B), with the top bid for the place priced between $1,100 and $1,200 psf ppr.
Nonetheless, Wong did not expect that the Zion Road (Parcel B) place would be prompted so quickly, because the recent 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 reflect property developers’ assurance in the home buying need in that location, provided the site’s appealing place near two MRT stations and services such as the Great World City shopping center,” Wong notes.
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve Listing are not issued for tender right away however are initially offered for application. It will be put up for tender only when a property developer submits an application with an acceptable minimum price.
The 99-year leasehold spot occupies 0.9 ha and is anticipated to yield as much as 610 exclusive housing units. With an optimum permissible gross floor surface area (GFA) of around 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 location is nearby to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
URA’s compliance of this quote rate is unsurprising, says Wong Siew Ying, head of research study and content at PropNex Realty, given 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 building group City Developments and Japanese real estate developer Mitsui Fudosan, The joint project submitted a sole bid of $1.107 billion. The 99-year leasehold area is the first to pilot long-stay serviced flats with a minimum stay of three months, and can yield 1,170 household units, including 435 extended serviced residences.
“Developers may likewise see the capacity of the sites at Zion Road, which there is sufficient interest for homes in the location, despite probable competition from the River Valley Green (Parcel A) location,” Lee says.
Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, concurs that the triggering of the site might mirror property developers’ confidence in the site and in the property market, especially for a pure residential site than one that incorporates a long-stay serviced apartment element. “Promoting residential homes is extra simple and lugs lesser risks compared to taking on a newer venture,” he observes.
Given that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “fairly conservative prices”, Wong says that upcoming land proposals could moderate. She expects the Zion Road (Parcel B) spot to get 2 or three proposals, and the leading cost can come in at approximately $1,150 to $1,250 psf ppr.
In this case, the location was caused when the unnamed property developer had submitted a bid not less than a minimal rate of $604.57 million.
She includes that the property developer that triggered the Reserve List site can even be taking the opportunity to apply for the plot at a much more measured cost, amidst the careful market view.
