Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A concealed developer has triggered the release of a household location, identified Zion Road (Parcel B), which will be released offer for sale via public tender next month, according to an April 22 announcement from URA.
In a similar way, Lee anticipates as much as three property developers taking part in the tender for Zion Roadway (Parcel B), with the leading offer for the place priced between $1,100 and $1,200 psf ppr.
Nonetheless, Wong did not expect that the Zion Road (Parcel B) place would be activated so soon, because the recent tender grant of the Zion Road (Parcel A) area and a neighboring non commercial plot in River Valley Green (Parcel A) that is still open. “This could show developers’ assurance in the home purchasing need in that location, provided the site’s appealing location near two MRT terminals and amenities such as the Great World City shopping center,” Wong notes.
The 99-year leasehold spot occupies 0.9 ha and is projected to generate up to 610 private residential units. With an optimum allowable gross floor surface area (GFA) of around 559,744 sq ft, the application price works out to a land charge of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is nearby to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.
She adds that the builder that triggered the Reserve List site could even be seizing the chance to obtain the plot at a more measured price, in the middle of the alert market view.
Given that the current land tender results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “fairly conservative rates”, Wong believes that upcoming land quotes might moderate. She anticipates the Zion Road (Parcel B) spot to obtain 2 or 3 quotes, and the leading cost might be available in at approximately $1,150 to $1,250 psf ppr.
“Developers may likewise see the potential of the areas at Zion Road, and that there is good enough need for residences in the area, in spite of potential competition from the River Valley Green (Parcel A) location,” Lee claims.
In this instance, the spot was set off when the anonymous developer had sent a quote not less than a minimal rate of $604.57 million.
Lee Sze Teck, senior director of data analytics at Huttons Asia, agrees that the triggering of the site might show developers’ confidence in the site and in the real estate market, especially for a pure property location than one that integrates a long-stay serviced home component. “Marketing residence homes is more straightforward and carries lower problems contrasted to embarking on a more recent venture,” he observes.
URA’s compliance of this proposal price 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 venture in between Singapore-listed building group City Developments and Japanese real estate developer Mitsui Fudosan, The joint project provided a sole proposal of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced apartments with a minimal stay of three months, and can yield 1,170 housing units, including 435 long-term serviced homes.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve Listing are not issued for tender instantly however are initially offered for application. It will certainly be set up for tender only when a property developer sends an application with an acceptable least possible price.
