Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold spot occupies 0.9 ha and is projected to produce up to 610 private housing units. With an optimum permissible gross floor surface area (GFA) of approximately 559,744 sq ft, the application cost figures out to a land rate of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is near to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.
“Developers might additionally view the potential of the sites at Zion Road, which there is sufficient interest for houses in the place, despite potential competition from the River Valley Green (Parcel A) location,” Lee claims.
In this case, the spot was set off when the anonymous developer had handed in a proposal not lower than a minimal amount cost of $604.57 million.
Similarly, Lee anticipates up to three property developers taking part in the tender for Zion Roadway (Parcel B), with the leading bid for the area priced in between $1,100 and $1,200 psf ppr.
URA’s acceptance of this proposal cost is unsurprising, says Wong Siew Ying, head of analysis and material at PropNex Realty, given that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was awarded earlier this month to a joint project in between Singapore-listed building group City Developments and Japanese realty developer Mitsui Fudosan, The joint venture handed in a single proposal of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced condos with a minimal stay of three months, and can generate 1,170 housing units, including 435 long-term serviced residences.
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However, Wong did not assume that the Zion Road (Parcel B) place would be activated so soon, because the recent tender grant of the Zion Street (Parcel A) site and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This might reflect developers’ confidence in the home purchasing demand in that location, provided the site’s enticing location near two MRT stops and amenities such as the Great World City shopping mall,” Wong notes.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “reasonably conservative prices”, Wong believes that upcoming land bids can moderate. She expects the Zion Road (Parcel B) spot to get two or three proposals, and the leading rate could be available in at near $1,150 to $1,250 psf ppr.
The Zion Road (Parcel B) plot is a reservation area on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve List are not released for tender instantly however are originally offered for application. It will be put up for tender only when a developer submits an application with an acceptable minimum cost.
An undisclosed developer has generated the launch of a housing location, classified Zion Road (Parcel B), which are going to be launched for sale via public tender next month, according to an April 22 announcement from URA.
Lee Sze Teck, senior director of information analytics at Huttons Asia, concurs that the triggering of the site may show programmers’ confidence in the site and in the real estate market, especially for a pure residential site than one that incorporates a long-stay serviced home element. “Selling residential homes is more straightforward and carries minimal dangers compared to undertaking a more recent venture,” he observes.
She adds that the property developer that activated the Reserve List site might also be taking the opportunity to get the plot at a much more assessed price, amid the alert market view.
