Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil

URA’s acknowledgment of this proposal rate 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 granted earlier this month to a joint project between Singapore-listed building group City Developments and Japanese realty property developer Mitsui Fudosan, The joint project submitted a single quote of $1.107 billion. The 99-year leasehold area is the first to pilot long-stay serviced flats with a minimum stay of 3 months, and can produce 1,170 housing units, including 435 long-term serviced homes.

The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) programme. Sites under the Reserve Listing are not released for tender right away however are originally offered for application. It will certainly be set up for tender only when a builder sends an application with an acceptable least possible rate.

A hidden property developer has recently triggered the launch of a household location, identified Zion Road (Parcel B), which are going to be released for sale via public tender next month, according to an April 22 news release from URA.

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In this case, the spot was activated when the unmarked property developer had actually submitted a bid not lower than a minimum price of $604.57 million.

In a similar way, Lee expects approximately three builders taking part in the tender for Zion Roadway (Parcel B), with the top tender for the place valued in between $1,100 and $1,200 psf ppr.

She adds that the builder that caused the Reserve List site could additionally be taking the possibility to get the plot at an extra assessed cost, amid the alert market belief.

Considered that the current land tender end results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “relatively conservative costs”, Wong opines that upcoming land quotes could moderate. She anticipates the Zion Road (Parcel B) spot to get two or 3 quotes, and the leading rate could be available in at approximately $1,150 to $1,250 psf ppr.

The 99-year leasehold site inhabits 0.9 ha and is anticipated to generate as much as 610 private residential units. With a highest permitted gross floor surface area (GFA) of around 559,744 sq ft, the application rate 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.

Lee Sze Teck, top director of data analytics at Huttons Asia, concurs that the triggering of the spot might mirror property developers’ confidence in the site and in the real estate market, particularly for a pure residential location than one that incorporates a long-stay serviced apartment component. “Promoting residence homes is much more uncomplicated and lugs lesser risks contrasted to taking on a newer venture,” he observes.

Nevertheless, Wong did not assume that the Zion Road (Parcel B) site would be set off so soon, in view of the latest tender award of the Zion Road (Parcel A) area and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This might reflect developers’ confidence in the home purchasing demand in that location, granted the site’s enticing area near two MRT stops and services such as the Great World City shopping mall,” Wong notes.

“Developers may likewise view the capability of the areas at Zion Road, and also there is sufficient interest for residences in the place, regardless of potential competitors from the River Valley Green (Parcel A) location,” Lee says.

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