Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
An undisclosed property developer has triggered the launch of a residential location, identified Zion Road (Parcel B), which will be started offer for sale via public tender next month, according to an April 22 announcement from URA.
However, Wong did not anticipate that the Zion Road (Parcel B) place would certainly be prompted so quickly, because the latest tender award of the Zion Road (Parcel A) site and a neighboring housing plot in River Valley Green (Parcel A) that is still open. “This could reflect developers’ confidence in the home purchasing need in this location, provided the location’s desirable area near 2 MRT stations and services such as the Great World City shopping mall,” Wong notes.
She includes that the developer that set off the Reserve List site could also be seizing the possibility to obtain the plot at a more measured price, in the middle of the careful market belief.
In a similar way, Lee expects up to three 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.
URA’s acceptance of this quote cost is unsurprising, states Wong Siew Ying, head of analysis and material at PropNex Realty, considered that it is less than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint project in between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint project submitted a single proposal of $1.107 billion. The 99-year leasehold area is the very first to pilot long-stay serviced condos with a minimum stay of three months, and can generate 1,170 housing units, including 435 long-term serviced apartments.
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“Developers may likewise see the capability of the areas at Zion Road, and that there is adequate interest for residences in the location, regardless of possible competitors from the River Valley Green (Parcel A) site,” Lee says.
The Zion Road (Parcel B) plot is a reservation area on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not released for tender immediately but are originally offered for application. It will certainly be put up for tender only when a property developer submits an application with an appropriate minimum cost.
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs that the triggering of the site might show property developers’ confidence in the site and in the property market, specifically for a pure property location than one that integrates a long-stay serviced apartment aspect. “Selling residential homes is more uncomplicated and lugs minimal problems contrasted to taking on a newer venture,” he observes.
Given that the current land tender end results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “fairly conservative prices”, Wong believes that upcoming land bids can regulate. She anticipates the Zion Road (Parcel B) spot to obtain 2 or three proposals, and the top rate can be available in at around $1,150 to $1,250 psf ppr.
In this instance, the location was caused when the anonymous developer had submitted a quote not lower than a minimal amount rate of $604.57 million.
The 99-year leasehold place occupies 0.9 ha and is projected to generate approximately 610 private housing units. With an optimum allowable gross floor area (GFA) of approximately 559,744 sq ft, the application price works out to a land charge of around $1,080 psf per plot ratio (ppr) based on GFA. The site is near to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
