Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A hidden property developer has already triggered the release of a household location, labelled Zion Road (Parcel B), which will be started offer for sale via public tender next month, according to an April 22 announcement from URA.
The Zion Road (Parcel B) plot is a reserve area on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not published for tender right away yet are originally offered for application. It will certainly be put up for tender only when a property developer sends an application with an acceptable minimum price.
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, agrees that the triggering of the site may show property developers’ confidence in the site and in the real estate market, specifically for a pure property site than one that includes a long-stay serviced house element. “Selling residential homes is a lot more uncomplicated and lugs minimal risks compared to embarking on a more recent venture,” he observes.
“Developers may also view the capability of the sites at Zion Road, and that there is enough demand for homes in the area, despite probable competition from the River Valley Green (Parcel A) location,” Lee says.
She adds that the developer that activated the Reserve List site might even be seizing the opportunity to get the plot at a more assessed cost, amid the cautious market view.
The 99-year leasehold spot occupies 0.9 ha and is anticipated to generate approximately 610 private residential units. With a maximum permissible gross floor area (GFA) of approximately 559,744 sq ft, the application rate figures out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The site is nearby to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
In a similar way, Lee expects up to three builders joining the tender for Zion Road (Parcel B), with the top tender for the place valued between $1,100 and $1,200 psf ppr.
Considered that the recent land tender end results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “relatively conservative prices”, Wong opines that upcoming land proposals can moderate. She expects the Zion Road (Parcel B) spot to obtain two or 3 proposals, and the top rate might can be found in at around $1,150 to $1,250 psf ppr.
However, Wong did not assume that the Zion Road (Parcel B) place would certainly be triggered so quickly, because the current tender grant of the Zion Road (Parcel A) site and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This can mirror developers’ assurance in the home purchasing need in that location, granted the location’s attractive place near two MRT stations and facilities such as the Great World City mall,” Wong notes.
URA’s acceptance of this quote cost is unsurprising, claims Wong Siew Ying, head of analysis and material at PropNex Realty, considered that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was allocated earlier this month to a joint project in between Singapore-listed building group City Developments and Japanese realty property developer Mitsui Fudosan, The joint venture submitted an one quote of $1.107 billion. The 99-year leasehold area is the initial to pilot long-stay serviced apartments with a minimum stay of three months, and can generate 1,170 household units, including 435 extended serviced residences.
In this case, the site was set off when the anonymous developer had actually handed in a bid not lower than a minimum price of $604.57 million.
