Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acceptance of this proposal rate is unsurprising, claims Wong Siew Ying, head of research study and material at PropNex Realty, given that it is less than the winning bid for a nearby Zion Road plot (Parcel A) that was awarded earlier this month to a joint venture between Singapore-listed building group City Developments and Japanese real estate developer Mitsui Fudosan, The joint venture submitted an one bid of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced condos with a minimal stay of 3 months, and can generate 1,170 housing units, including 435 continued serviced flats.
In the same manner, Lee anticipates approximately 3 builders participating in the tender for Zion Road (Parcel B), with the leading offer for the area valued between $1,100 and $1,200 psf ppr.
Given that the recent land tender end results at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “relatively conservative costs”, Wong suggests that upcoming land quotes could moderate. She anticipates the Zion Road (Parcel B) site to receive two or three quotes, and the leading cost might come in at near $1,150 to $1,250 psf ppr.
“Developers might likewise view the capability of the sites at Zion Road, which there is sufficient need for homes in the place, in spite of possible competition from the River Valley Green (Parcel A) site,” Lee claims.
Altura EC Bukit Batok West Avenue 8
She includes that the developer that set off the Reserve List site might even be taking the chance to get the plot at a much more measured cost, amidst the cautious market sentiment.
A concealed property developer has already set off the launch of a residential site, identified Zion Road (Parcel B), which are going to be released offer for sale via public tender next month, according to an April 22 news release from URA.
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve List are not published for tender right away but are initially made available for application. It will be established for tender only when a builder sends an application with a reasonable minimum price.
However, Wong did not expect that the Zion Road (Parcel B) site would be activated so soon, because the latest tender award of the Zion Street (Parcel A) area and a neighboring non commercial plot in River Valley Green (Parcel A) that is still open. “This can mirror property developers’ assurance in the home purchasing interest in this location, granted the location’s enticing place near 2 MRT stops and features such as the Great World City mall,” Wong notes.
The 99-year leasehold place inhabits 0.9 ha and is projected to produce up to 610 private housing units. With an optimum permissible gross floor surface area (GFA) of around 559,744 sq ft, the application rate figures out to a land price of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is close to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.
Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, agrees that the triggering of the spot might show property developers’ confidence in the site and in the property market, especially for a pure property location than one that includes a long-stay serviced house aspect. “Marketing residential homes is extra straightforward and brings lesser dangers compared to embarking on a more recent venture,” he observes.
In this situation, the spot was activated when the unnamed property developer had sent a proposal not lower than a minimal rate of $604.57 million.
