Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acceptance of this bid price is unsurprising, claims Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is lower 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 building group City Developments and Japanese property builder Mitsui Fudosan, The joint venture handed in a sole bid of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced condos with a minimum stay of 3 months, and can generate 1,170 housing units, including 435 continued serviced flats.
Considered that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “relatively conservative rates”, Wong opines that upcoming land bids could regulate. She expects the Zion Road (Parcel B) spot to receive 2 or three quotes, and the leading rate might be available in at near $1,150 to $1,250 psf ppr.
In this instance, the location was triggered when the unnamed property developer had actually sent a proposal not lower than a minimal amount cost of $604.57 million.
Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, agrees that the triggering of the spot may reflect property developers’ confidence in the site and in the property market, specifically for a pure domestic site than one that includes a long-stay serviced apartment aspect. “Selling residential homes is extra uncomplicated and lugs lesser dangers compared to undertaking a more recent venture,” he observes.
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) programme. Spots under the Reserve Listing are not published for tender immediately yet are at first made available for application. It will certainly be set up for tender only when a property developer sends an application with a reasonable minimum cost.
She includes that the property developer that caused the Reserve List site can also be taking the opportunity to make an application for the plot at a much more evaluated price, in the middle of the alert market view.
In the same manner, Lee anticipates as much as 3 builders taking part in the tender for Zion Road (Parcel B), with the leading bid for the area valued between $1,100 and $1,200 psf ppr.
Nonetheless, Wong did not anticipate that the Zion Road (Parcel B) site would certainly be set off so quickly, in view of the current tender grant of the Zion Road (Parcel A) site and a close-by non commercial plot in River Valley Green (Parcel A) that is still open. “This can reflect developers’ confidence in the home buying need in this area, granted the site’s appealing area near two MRT stations and features such as the Great World City mall,” Wong notes.
The 99-year leasehold spot inhabits 0.9 ha and is projected to generate approximately 610 exclusive non commercial units. With a maximum permitted gross floor 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 area is near to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
“Developers may likewise view the potential of the areas at Zion Road, and that there is enough interest for houses in the location, despite probable competitors from the River Valley Green (Parcel A) location,” Lee claims.
An undisclosed developer has recently generated the release of a residential site, identified Zion Road (Parcel B), which will be started for sale via public tender next month, according to an April 22 news release from URA.