Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
URA’s acknowledgment of this proposal price is unsurprising, states Wong Siew Ying, head of research and content at PropNex Realty, considered that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was granted earlier this month to a joint venture in between Singapore-listed real estate group City Developments and Japanese property developer Mitsui Fudosan, The joint venture submitted an one proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced apartments with a minimum stay of 3 months, and can produce 1,170 housing units, including 435 long-term serviced apartments.
“Developers might likewise see the capability of the areas at Zion Road, and also there is adequate demand for houses in the place, regardless of probable competition from the River Valley Green (Parcel A) location,” Lee claims.
In this case, the spot was set off when the anonymous property developer had actually submitted a proposal not lower than a minimal amount rate of $604.57 million.
A confidential developer has already generated the release of a residential site, identified Zion Road (Parcel B), which are going to be launched offer for sale via public tender next month, according to an April 22 press release from URA.
The 99-year leasehold spot inhabits 0.9 ha and is expected to generate as much as 610 private non commercial units. With a highest acceptable gross floor surface area (GFA) of approximately 559,744 sq ft, the application rate works out to a land charge of about $1,080 psf per plot ratio (ppr) based on GFA. The site is near to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
She includes that the property developer that activated the Reserve List site can even be seizing the possibility to request the plot at a more assessed price, amidst the cautious market view.
Given that the current land tender end results at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “reasonably conservative costs”, Wong opines that upcoming land bids could regulate. She expects the Zion Road (Parcel B) spot to obtain 2 or three quotes, and the top rate might come in at near $1,150 to $1,250 psf ppr.
Nevertheless, Wong did not anticipate that the Zion Road (Parcel B) site would be prompted so quickly, because the current tender award of the Zion Street (Parcel A) area and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This can show property developers’ confidence in the home buying interest in this location, provided the location’s appealing location near 2 MRT stops and amenities such as the Great World City shopping center,” Wong notes.
Lee Sze Teck, top director of data analytics at Huttons Asia, agrees that the triggering of the spot may show property developers’ confidence in the site and in the real estate market, especially for a pure household site than one that incorporates a long-stay serviced apartment aspect. “Promoting residential homes is a lot more uncomplicated and brings lesser problems compared to undertaking a more recent endeavor,” he observes.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve Listing are not released for tender instantly yet are at first offered for application. It will certainly be established for tender only when a developer submits an application with an acceptable least possible cost.
In the same manner, Lee expects approximately 3 property developers joining the tender for Zion Roadway (Parcel B), with the top bid for the area valued in between $1,100 and $1,200 psf ppr.
