Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold place occupies 0.9 ha and is projected to yield approximately 610 exclusive housing units. With a highest acceptable gross floor area (GFA) of about 559,744 sq ft, the application price figures out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The site is near to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
URA’s acceptance of this proposal rate is unsurprising, states Wong Siew Ying, head of analysis and content at PropNex Realty, considered 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 venture between Singapore-listed building group City Developments and Japanese property developer Mitsui Fudosan, The joint venture 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 three months, and can produce 1,170 residential units, including 435 long-term serviced apartments.
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not published for tender instantly yet are at first offered for application. It will be put up for tender only when a builder submits an application with an appropriate least possible price.
Lee Sze Teck, top director of information analytics at Huttons Asia, agrees that the triggering of the spot might mirror 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 component. “Selling residence homes is more uncomplicated and brings lower risks contrasted to taking on a newer endeavor,” he observes.
In this case, the spot was triggered when the unmarked developer had actually handed in a proposal not lower than a minimum rate of $604.57 million.
A hidden property developer has already set off the release of a residential site, identified Zion Road (Parcel B), which will be released for sale via public tender next month, according to an April 22 press release from URA.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “relatively conservative prices”, Wong opines that upcoming land bids can moderate. She anticipates the Zion Road (Parcel B) spot to obtain 2 or three proposals, and the leading price might be available in at around $1,150 to $1,250 psf ppr.
“Developers may also see the potential of the places at Zion Road, which there is adequate interest for homes in the location, regardless of potential competitors from the River Valley Green (Parcel A) location,” Lee claims.
She includes that the builder that activated the Reserve List site could also be taking the possibility to apply for the plot at a more measured price, amid the alert market belief.
In the same manner, Lee expects as much as three builders taking part in the tender for Zion Road (Parcel B), with the top offer for the place valued between $1,100 and $1,200 psf ppr.
However, Wong did not anticipate that the Zion Road (Parcel B) site would certainly be set off so soon, because the latest tender grant of the Zion Road (Parcel A) area and a close-by residential 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, provided the site’s attractive place near 2 MRT terminals and amenities such as the Great World City mall,” Wong notes.
