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 anticipated to generate as much as 610 private housing units. With a maximum permitted gross floor surface area (GFA) of around 559,744 sq ft, the application rate works out to a land rate of around $1,080 psf per plot ratio (ppr) based on GFA. The area is nearby to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.
Nonetheless, Wong did not expect that the Zion Road (Parcel B) place would certainly be prompted so quickly, because the current tender grant of the Zion Street (Parcel A) site and a close-by housing plot in River Valley Green (Parcel A) that is still open. “This could show property developers’ assurance in the home purchasing interest in this area, given the site’s appealing place near two MRT stations and services such as the Great World City shopping mall,” Wong notes.
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) programme. Spots under the Reserve Listing are not published for tender right away but are at first made available for application. It will be established for tender only when a builder sends an application with an appropriate least possible rate.
URA’s acceptance of this bid rate is unsurprising, says Wong Siew Ying, head of research study and material at PropNex Realty, given that it is lower than the winning bid for an adjacent Zion Road plot (Parcel A) that was granted earlier this month to a joint project between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint venture submitted a sole proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced apartments with a minimum stay of 3 months, and can yield 1,170 residential units, including 435 long-term serviced flats.
In this instance, the site was triggered when the anonymous property developer had actually handed in a bid not less than a minimal amount cost of $604.57 million.
“Developers might likewise see the potential of the areas at Zion Road, which there is good enough interest for houses in the location, despite potential competition from the River Valley Green (Parcel A) location,” Lee says.
She includes that the builder that activated the Reserve List site might also be taking the chance to look for the plot at a more measured rate, amidst the cautious market sentiment.
Given that the current land tender end results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “relatively conservative rates”, Wong believes that upcoming land proposals could moderate. She anticipates the Zion Road (Parcel B) site to obtain two or 3 proposals, and the top price could be available in at approximately $1,150 to $1,250 psf ppr.
A concealed property developer has recently set off the release of a household location, classified Zion Road (Parcel B), which are going to be launched offer for sale via public tender next month, according to an April 22 news release from URA.
Lee Sze Teck, top supervisor of data analytics at Huttons Asia, concurs that the triggering of the spot may show programmers’ confidence in the site and in the real estate market, specifically for a pure household location than one that integrates a long-stay serviced home element. “Marketing residential homes is much more uncomplicated and lugs lesser dangers compared to embarking on a more recent venture,” he observes.
In the same manner, Lee anticipates approximately three developers participating in the tender for Zion Roadway (Parcel B), with the leading offer for the site priced between $1,100 and $1,200 psf ppr.
