Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acceptance of this proposal rate is unsurprising, claims Wong Siew Ying, head of research and material at PropNex Realty, considered that it is lower than the winning bid for an adjacent Zion Road plot (Parcel A) that was awarded earlier this month to a joint project between Singapore-listed property group City Developments and Japanese property builder Mitsui Fudosan, The joint project provided an one bid of $1.107 billion. The 99-year leasehold area is the initial to pilot long-stay serviced apartments with a minimum stay of 3 months, and can yield 1,170 housing units, including 435 extended serviced residences.
The 99-year leasehold site occupies 0.9 ha and is anticipated to generate up to 610 exclusive residential units. With an optimum permitted gross floor surface area (GFA) of approximately 559,744 sq ft, the application price figures out to a land charge of around $1,080 psf per plot ratio (ppr) based on GFA. The area is close to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
She adds that the builder that triggered the Reserve List site could additionally be taking the possibility to look for the plot at an extra measured rate, amid the cautious market belief.
A concealed developer has already generated the release of a non commercial 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 area on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve List are not issued for tender immediately however are at first made available for application. It will certainly be established for tender only when a developer sends an application with an appropriate minimum rate.
However, Wong did not expect that the Zion Road (Parcel B) place would certainly be prompted so quickly, because the current tender grant of the Zion Road (Parcel A) site and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This could mirror property developers’ assurance in the home purchasing interest in this area, provided the site’s attractive area near 2 MRT stops and amenities such as the Great World City mall,” Wong notes.
Lee Sze Teck, top supervisor of data analytics at Huttons Asia, agrees that the triggering of the site may show programmers’ confidence in the site and in the property market, particularly for a pure domestic location than one that integrates a long-stay serviced home aspect. “Marketing residential homes is much more simple and lugs lower risks contrasted to taking on a newer endeavor,” he observes.
Given that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “relatively conservative costs”, Wong believes that upcoming land quotes can regulate. She expects the Zion Road (Parcel B) spot to receive two or 3 bids, and the top rate can be available in at approximately $1,150 to $1,250 psf ppr.
“Developers might additionally see the capability of the places at Zion Road, and that there is sufficient demand for residences in the location, despite probable competition from the River Valley Green (Parcel A) site,” Lee states.
In this situation, the location was activated when the anonymous property developer had actually handed in a proposal not lower than a minimal amount rate of $604.57 million.
Similarly, Lee anticipates as much as three builders participating in the tender for Zion Road (Parcel B), with the top offer for the area priced between $1,100 and $1,200 psf ppr.
