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 anticipated to generate as much as 610 exclusive residential units. With a maximum permissible gross floor area (GFA) of about 559,744 sq ft, the application cost figures out to a land price of about $1,080 psf per plot ratio (ppr) based upon GFA. The location is close to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
In this case, the site was triggered when the anonymous property developer had actually sent a proposal not less than a minimum cost of $604.57 million.
URA’s acknowledgment of this bid cost is unsurprising, states Wong Siew Ying, head of research and content at PropNex Realty, considered 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 between Singapore-listed property group City Developments and Japanese real estate developer Mitsui Fudosan, The joint project handed in a sole bid of $1.107 billion. The 99-year leasehold area is the very first to pilot long-stay serviced houses with a minimal stay of three months, and can yield 1,170 household units, including 435 long-term serviced apartments.
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Nonetheless, Wong did not assume that the Zion Road (Parcel B) place would be prompted so quickly, in view of the current tender grant of the Zion Road (Parcel A) area and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This might show developers’ confidence in the home purchasing interest in this area, given the site’s enticing area near 2 MRT stops and facilities such as the Great World City mall,” Wong notes.
A concealed property developer has triggered the release of a household site, identified Zion Road (Parcel B), which will be released offer for sale via public tender next month, according to an April 22 press release from URA.
“Developers may likewise see the potential of the sites at Zion Road, and also there is adequate need for houses in the area, in spite of possible competition from the River Valley Green (Parcel A) site,” Lee says.
She adds that the builder that activated the Reserve List site could also be seizing the opportunity to obtain the plot at a more evaluated price, amid the careful market belief.
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs that the triggering of the site might reflect developers’ confidence in the site and in the real estate market, specifically for a pure domestic site than one that includes a long-stay serviced apartment aspect. “Selling residence homes is a lot more uncomplicated and carries lesser risks compared to taking on a newer endeavor,” he observes.
In a similar way, Lee anticipates up to three builders joining the tender for Zion Roadway (Parcel B), with the top tender for the place priced between $1,100 and $1,200 psf ppr.
Given that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “reasonably conservative costs”, Wong says that upcoming land proposals can moderate. She anticipates the Zion Road (Parcel B) spot to obtain 2 or three proposals, and the top cost could can be found in at approximately $1,150 to $1,250 psf ppr.
The Zion Road (Parcel B) plot is a reserve area on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not released for tender right away but are originally offered for application. It will certainly be set up for tender only when a property developer sends an application with an acceptable least possible cost.
