Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acceptance of this proposal cost is unsurprising, claims Wong Siew Ying, head of research and content at PropNex Realty, given that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was allocated earlier this month to a joint project in between Singapore-listed building group City Developments and Japanese real estate builder 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 apartments with a minimum stay of three months, and can generate 1,170 residential units, including 435 extended serviced homes.
Similarly, Lee expects as much as three property developers joining the tender for Zion Road (Parcel B), with the leading bid for the place priced in between $1,100 and $1,200 psf ppr.
Considered that the current land tender results at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “reasonably conservative rates”, Wong believes that upcoming land bids might regulate. She anticipates the Zion Road (Parcel B) spot to get 2 or 3 proposals, and the leading price can come in at near $1,150 to $1,250 psf ppr.
In this instance, the spot was caused when the unmarked developer had actually sent a bid not less than a minimum price of $604.57 million.
The 99-year leasehold place occupies 0.9 ha and is expected to generate approximately 610 exclusive residential units. With an optimum permissible gross floor area (GFA) of approximately 559,744 sq ft, the application rate figures out to a land charge of about $1,080 psf per plot ratio (ppr) based on GFA. The site is nearby to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
“Developers might also view the capacity of the areas at Zion Road, and also there is good enough interest for homes in the area, regardless of possible competition from the River Valley Green (Parcel A) location,” Lee says.
A concealed property developer has recently triggered the release of a residential location, identified Zion Road (Parcel B), which are going to be started for sale via public tender next month, according to an April 22 announcement from URA.
Lee Sze Teck, top director of information analytics at Huttons Asia, agrees that the triggering of the spot may mirror developers’ confidence in the site and in the real estate market, particularly for a pure domestic site than one that incorporates a long-stay serviced house component. “Selling residential homes is extra straightforward and carries lesser problems contrasted to taking on a newer endeavor,” he observes.
Nevertheless, Wong did not assume that the Zion Road (Parcel B) place would certainly be activated so soon, because the latest tender grant of the Zion Street (Parcel A) area and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This could mirror developers’ assurance in the home purchasing interest in this location, provided the site’s desirable area near two MRT terminals and services such as the Great World City mall,” Wong notes.
She includes that the developer that activated the Reserve List site can additionally be taking the opportunity to make an application for the plot at a more assessed cost, amid the alert market view.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve List are not issued for tender instantly however are at first made available for application. It will be set up for tender only when a builder sends an application with an acceptable minimum cost.
