Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acknowledgment of this proposal cost 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 surrounding Zion Road plot (Parcel A) that was granted earlier this month to a joint venture in between Singapore-listed property group City Developments and Japanese realty developer Mitsui Fudosan, The joint venture submitted a single proposal of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced condos with a minimum stay of three months, and can generate 1,170 residential units, including 435 long-term serviced residences.
Nevertheless, Wong did not assume that the Zion Road (Parcel B) site would be triggered so soon, because the latest 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 reflect developers’ assurance in the home buying interest in this area, provided the location’s desirable place near two MRT stations and amenities such as the Great World City mall,” Wong notes.
In this instance, the site was triggered when the unmarked developer had handed in a quote not less than a minimal amount rate of $604.57 million.
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not released for tender right away yet are originally offered for application. It will certainly be set up for tender only when a property developer submits an application with an acceptable least possible rate.
The 99-year leasehold spot occupies 0.9 ha and is anticipated to yield as much as 610 private housing units. With an optimum allowable gross floor surface area (GFA) of around 559,744 sq ft, the application cost works out to a land price of about $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 Waterfront Food Centre and River Valley Primary School.
In the same manner, Lee anticipates up to 3 property developers taking part in the tender for Zion Roadway (Parcel B), with the leading bid for the site valued in between $1,100 and $1,200 psf ppr.
“Developers might also find the capacity of the places at Zion Road, and also there is enough interest for houses in the area, despite probable competition from the River Valley Green (Parcel A) location,” Lee claims.
Newport Residences condominium
An undisclosed property developer has generated the launch of a non commercial 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.
Given that the current land tender results at Zion Road (Parcel A) and Orchard Blvd have been “lacklustre” and awarded at “reasonably conservative prices”, Wong says that upcoming land bids could moderate. She anticipates the Zion Road (Parcel B) spot to get two or 3 quotes, and the top rate could can be found in at around $1,150 to $1,250 psf ppr.
She includes that the developer that set off the Reserve List site could even be taking the possibility to apply for the plot at a more evaluated cost, amid the alert market belief.
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, agrees that the triggering of the site may show developers’ confidence in the site and in the property market, especially for a pure property location than one that includes a long-stay serviced home component. “Selling residence homes is a lot more simple and carries lower problems compared to carrying out a more recent endeavor,” he observes.
