Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold site occupies 0.9 ha and is projected to yield approximately 610 private residential units. With an optimum permissible gross floor area (GFA) of approximately 559,744 sq ft, the application price works out to a land price of about $1,080 psf per plot ratio (ppr) based on GFA. The site is close to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.
URA’s acceptance of this quote cost is unsurprising, claims Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is less than the winning bid for a surrounding Zion Road plot (Parcel A) that was allocated earlier this month to a joint project in between Singapore-listed building group City Developments and Japanese real estate property developer Mitsui Fudosan, The joint venture submitted a single proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced condos with a minimum stay of three months, and can yield 1,170 residential units, including 435 extended serviced apartments.
“Developers may likewise see the capacity of the places at Zion Road, and also there is sufficient demand for houses in the location, regardless of probable competitors from the River Valley Green (Parcel A) site,” Lee states.
Nevertheless, Wong did not expect that the Zion Road (Parcel B) site would certainly be triggered so soon, because the current tender grant of the Zion Street (Parcel A) site and a close-by non commercial plot in River Valley Green (Parcel A) that is still open. “This could reflect property developers’ confidence in the home buying interest in that area, granted the location’s appealing location near two MRT terminals and amenities such as the Great World City mall,” Wong notes.
In this case, the spot was triggered when the unnamed developer had actually sent a proposal not lower than a minimal amount cost of $604.57 million.
An undisclosed developer has recently generated the launch of a non commercial site, labelled Zion Road (Parcel B), which will be started for sale via public tender next month, according to an April 22 press release from URA.
Given that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “fairly conservative prices”, Wong opines that upcoming land bids could regulate. She anticipates the Zion Road (Parcel B) spot to get 2 or 3 proposals, and the top cost can come in at near $1,150 to $1,250 psf ppr.
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs that the triggering of the site may reflect programmers’ confidence in the site and in the real estate market, especially for a pure domestic location than one that incorporates a long-stay serviced home element. “Promoting residence homes is extra simple and carries lesser dangers compared to undertaking a newer endeavor,” he observes.
In a similar way, Lee anticipates up to three builders taking part in the tender for Zion Road (Parcel B), with the leading tender for the area valued in between $1,100 and $1,200 psf ppr.
She includes that the property developer that triggered the Reserve List site can even be seizing the possibility to look for the plot at a much more evaluated cost, in the middle of the careful market view.
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) programme. Spots under the Reserve List are not released for tender immediately yet are at first offered for application. It will certainly be set up for tender only when a developer submits an application with an appropriate least possible rate.
