Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acknowledgment of this proposal cost is unsurprising, says Wong Siew Ying, head of research and material at PropNex Realty, considered that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint project between Singapore-listed building group City Developments and Japanese realty developer Mitsui Fudosan, The joint project submitted an one quote of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced condos with a minimal stay of three months, and can generate 1,170 residential units, including 435 extended serviced flats.
She adds that the property developer that set off the Reserve List site might even be taking the opportunity to apply for the plot at a much more measured price, amidst the careful market belief.
Considered that the current land tender end results at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “relatively conservative rates”, Wong suggests that upcoming land quotes can moderate. She expects the Zion Road (Parcel B) site to receive 2 or three proposals, and the leading cost might can be found in at approximately $1,150 to $1,250 psf ppr.
In this situation, the location was triggered when the anonymous developer had submitted a bid not less than a minimal cost of $604.57 million.
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not published for tender immediately but are at first offered for application. It will certainly be established for tender only when a builder submits an application with an acceptable minimum rate.
Nonetheless, Wong did not assume that the Zion Road (Parcel B) place would certainly be triggered so quickly, in view of the current tender grant of the Zion Street (Parcel A) area and a nearby non commercial plot in River Valley Green (Parcel A) that is still open. “This can mirror property developers’ assurance in the home buying demand in this location, granted the location’s attractive location near 2 MRT terminals and facilities such as the Great World City shopping mall,” Wong notes.
Similarly, Lee anticipates up to 3 developers joining the tender for Zion Road (Parcel B), with the top tender for the site priced in between $1,100 and $1,200 psf ppr.
“Developers might additionally view the capacity of the areas at Zion Road, and also there is adequate demand for residences in the place, regardless of probable competition from the River Valley Green (Parcel A) location,” Lee states.
A confidential developer has recently generated the launch of a housing location, identified Zion Road (Parcel B), which will be started offer for sale via public tender next month, according to an April 22 press release from URA.
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, concurs that the triggering of the spot may reflect programmers’ confidence in the site and in the property market, particularly for a pure household site than one that includes a long-stay serviced home component. “Promoting residential homes is much more simple and carries minimal problems compared to carrying out a more recent endeavor,” he observes.
The 99-year leasehold place inhabits 0.9 ha and is projected to produce approximately 610 exclusive housing units. With an optimum permissible gross floor surface area (GFA) of approximately 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 site is nearby to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.
