Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold place inhabits 0.9 ha and is anticipated to produce approximately 610 private non commercial units. With an optimum permissible gross floor area (GFA) of approximately 559,744 sq ft, the application rate works out to a land price of around $1,080 psf per plot ratio (ppr) based upon GFA. The location is close to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
In a similar way, Lee anticipates up to 3 property developers participating in the tender for Zion Roadway (Parcel B), with the top bid for the area valued between $1,100 and $1,200 psf ppr.
Nevertheless, Wong did not expect that the Zion Road (Parcel B) place would certainly be activated so soon, because the latest tender award of the Zion Road (Parcel A) site and a close-by housing plot in River Valley Green (Parcel A) that is still open. “This can mirror developers’ assurance in the home purchasing demand in that location, provided the location’s desirable area near two MRT stops and services such as the Great World City shopping center,” Wong notes.
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, agrees that the triggering of the site might reflect property developers’ confidence in the site and in the real estate market, particularly for a pure property location than one that includes a long-stay serviced home aspect. “Marketing residence homes is extra straightforward and lugs lesser problems contrasted to carrying out a more recent endeavor,” he observes.
An undisclosed developer has already set off the launch of a household site, labelled Zion Road (Parcel B), which are going to be launched for sale via public tender next month, according to an April 22 news release from URA.
Given that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “relatively conservative costs”, Wong says that upcoming land quotes could moderate. She anticipates the Zion Road (Parcel B) spot to get 2 or 3 bids, and the leading rate could be available in at near $1,150 to $1,250 psf ppr.
In this case, the location was set off when the unnamed developer had actually submitted a bid not lower than a minimal rate of $604.57 million.
“Developers might likewise see the capability of the places at Zion Road, and also there is enough demand for residences in the place, despite possible competitors from the River Valley Green (Parcel A) location,” Lee states.
She includes that the builder that caused the Reserve List site might even be seizing the chance to apply for the plot at an extra evaluated cost, amid the careful market sentiment.
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve List are not issued for tender instantly yet are initially made available for application. It will certainly be established for tender only when a property developer sends an application with an appropriate least possible cost.
URA’s acceptance of this quote price is unsurprising, claims Wong Siew Ying, head of research study and material at PropNex Realty, considered that it is lower than the winning bid for an adjacent Zion Road plot (Parcel A) that was awarded earlier this month to a joint project between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint project provided an one proposal of $1.107 billion. The 99-year leasehold area is the very first to pilot long-stay serviced flats with a minimum stay of 3 months, and can produce 1,170 residential units, including 435 long-term serviced apartments.
