Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A concealed property developer has triggered the release of a housing site, classified 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.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not released for tender right away but are originally made available for application. It will certainly be put up for tender only when a builder sends an application with an appropriate least possible price.
Nevertheless, Wong did not expect that the Zion Road (Parcel B) place would certainly be activated so quickly, because the current tender grant of the Zion Road (Parcel A) site and a nearby non commercial plot in River Valley Green (Parcel A) that is still open. “This can mirror property developers’ confidence in the home purchasing demand in this location, granted the site’s attractive location near 2 MRT terminals and amenities such as the Great World City shopping mall,” Wong notes.
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 household site than one that integrates a long-stay serviced home aspect. “Marketing residence homes is more uncomplicated and brings lesser dangers compared to undertaking a newer venture,” he observes.
“Developers might additionally find the capacity of the areas at Zion Road, and that there is good enough demand for homes in the place, despite probable competitors from the River Valley Green (Parcel A) location,” Lee claims.
The 99-year leasehold site occupies 0.9 ha and is expected to generate as much as 610 private residential units. With a maximum permissible gross floor surface area (GFA) of about 559,744 sq ft, the application cost works out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The area is close to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
She includes that the property developer that set off the Reserve List site can also be taking the possibility to apply for the plot at an extra measured rate, amid the cautious market sentiment.
Similarly, Lee anticipates as much as three property developers participating in the tender for Zion Roadway (Parcel B), with the leading bid for the place priced in between $1,100 and $1,200 psf ppr.
URA’s acknowledgment of this proposal rate is unsurprising, claims Wong Siew Ying, head of research and material at PropNex Realty, given that it is less than the winning bid for a nearby Zion Road plot (Parcel A) that was awarded earlier this month to a joint venture between Singapore-listed building group City Developments and Japanese realty developer Mitsui Fudosan, The joint project provided a sole proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced houses with a minimum stay of three months, and can generate 1,170 housing units, including 435 continued serviced homes.
In this situation, the site was triggered when the unnamed property developer had actually submitted a bid not lower than a minimal cost of $604.57 million.
Considered that the current land tender results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “reasonably conservative prices”, Wong believes that upcoming land bids can regulate. She anticipates the Zion Road (Parcel B) spot to receive 2 or 3 quotes, and the leading price can be found in at around $1,150 to $1,250 psf ppr.
