URA awards Zion Road site to CDL-Mitsui Fudosan JV, and Upper Thomson Road site to GuocoLand-Hong Leong JV

The JV associates have previously indicated that they intend to develop the location right into a mixed-use development comprising 2 housing blocks, one that is 69 floors and the some other 64 storeys, with around 740 housing devices up for sale in total. The scheduled project is going to also comprise a retail platform, and a 35-storey block with regarding 290 rental apartment units.

Mark Yip, Chief Executive Officer of Huttons Asia, claims that the eye-watering rate for the spot is a “big commitment in the face of high interest. Thinking about these risks, the quote of $1,202 psf ppr is fair”.

According to a GuocoLand speaker: “The Upper Thomson Road location is located in an exclusive landed real estate area, similar to the Lentor Hills estate which we have developed as a new premium personal residence estate via our developments such as Lentor Modern and Lentor Mansion. We are delighted to have the opportunity to uplift another brand-new area at Springleaf through our placemaking abilities. The future growth, which is served by the Springleaf MRT terminal on the Thomson-East Coast Line, will have around 940 units.”

CDL and Mitsui Fudosan submitted a $1.107 billion bid for the 164,439 sq ft spot, which converts to $1,202 psf per plot ratio (ppr). The site has a story ratio of 5.6 and is zoned residential with industrial on the first level. The brand-new development can yield approximately 1,170 brand-new home units. This is likewise the initial location launched by the federal government that featured units under the new long-lasting serviced residence scheme.

Tan predicts that the new development may see a potential launch opening cost of merely under S$ 2,000 psf. “As the Upper Thomson Roadway Parcel B site would be the very first in a fairly pristine location without skyscraper residences, there is some very first mover advantage in a picturesque district,” she states.

The CDL-Mitsui Fudosan JV was the only one to send a quote for the Zion Road location when the tender closed up on April 4. Furthermore, the GuocoLand-Hong Leong JV even sent the sole bid for the Upper Thomson Road GLS spot when that tender closed on April 4. Eugene Lim, vital executive officer, period Singapore, commented that both GLS locations are relatively ‘untested’. “The state may have taken into consideration the tender prices sent for these spots to be sensible, regarding the problems that these developers are prepared to take on,” he explains.

Wong Siew Ying, head of research and content at PropNex Real estate, mentions that although the land costs were listed below market assumptions URA likely thought of various other elements in assessing the bids. “For example, the Upper Thomson Roadway plot being in a relatively untested brand-new real estate district, and the Zion Roadway plot being the first property development to make up the long-stay serviced condos,” she says.

The $905 psf ppr bid put in by GuocoLand-Hong Leong is “fair” as it is a much bigger site compared to the Zion Road plot, claims Yip, including: “Therefore the quantum is larger, and with a bigger quantum the possibilities are similarly bigger too”.

” At a land price of S$ 1,202 psf ppr, the breakeven expense could possibly vary between S$ 2,400 psf and S$ 2,600 psf depending on technical, material and style considerations, with kick off prices beginning with S$ 2,700 psf,” says Alice Tan, head of consultancy at Knight Frank Singapore. She includes that the brand-new development can launch at approximately S$ 3,000 psf and this price would certainly not only be tasty, but attractive for Singaporean homebuyers and irreversible citizens, whether for career or investment.

URA has awarded the tender for 2 recently shut government land sale (GLS) spots. A residential spot at Zion Roadway was granted to a mutual venture (JV) amongst City Developments Ltd (CDL) and Mitsui Fudosan, whilst a several GLS spot at Upper Thomson Road was presented to a JV between GuocoLand and Hong Leong Holdings.

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At the same time, the GuocoLand-Hong Leong JV submitted a quote of $779.6 million for the 344,700 sq ft place around Upper Thomson Road. The cost translates to $905 psf ppr.

This was echoed by Tricia Song, head of study, Singapore and Southeast Asia, CBRE. She notices that the bid for the Zion Road location is a “significant” 30% less than the similar land parcel across the road, which has been developed into the 455-unit Riviere. “The approval of the lower-than-expected proposal price despite its being the single quote, is a recognition that market issues have actually transformed over the last 5-6 years since the neighboring location was awarded, given factors such as increased ABSD, greater construction expenses, funding expenses, along with threat premium for the (long-stay serviced residences) element which is a new possession class,” explains Tune.