Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
Lee Sze Teck, senior director of information analytics at Huttons Asia, concurs that the triggering of the spot may reflect 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 home element. “Selling residence homes is a lot more simple and lugs lower risks contrasted to undertaking a more recent endeavor,” he observes.
A confidential developer has already set off the release of a housing site, labelled Zion Road (Parcel B), which are going to be released offer for sale via public tender next month, according to an April 22 announcement from URA.
Given that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “reasonably conservative rates”, Wong says that upcoming land proposals can regulate. She anticipates the Zion Road (Parcel B) site to obtain 2 or three bids, and the leading cost can be available in at around $1,150 to $1,250 psf ppr.
She includes that the builder that activated the Reserve List site can also be seizing the chance to look for the plot at an extra evaluated price, amidst the alert market belief.
The 99-year leasehold site inhabits 0.9 ha and is projected to produce as much as 610 exclusive housing units. With a maximum permitted gross floor area (GFA) of about 559,744 sq ft, the application cost figures out to a land price of around $1,080 psf per plot ratio (ppr) based on GFA. The area is nearby to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.
“Developers might additionally find the capacity of the places at Zion Road, which there is sufficient demand for homes in the place, in spite of potential competitors from the River Valley Green (Parcel A) site,” Lee claims.
However, Wong did not expect that the Zion Road (Parcel B) site would be activated so quickly, because the latest tender grant of the Zion Road (Parcel A) area and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This could mirror developers’ confidence in the home buying demand in this location, given the location’s desirable area near 2 MRT terminals and amenities such as the Great World City shopping center,” Wong notes.
In this instance, the site was set off when the anonymous property developer had actually submitted a quote not less than a minimal price of $604.57 million.
URA’s acknowledgment of this proposal cost 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 nearby Zion Road plot (Parcel A) that was awarded earlier this month to a joint project between Singapore-listed real estate group City Developments and Japanese real estate developer Mitsui Fudosan, The joint venture provided a sole proposal of $1.107 billion. The 99-year leasehold area is the first to pilot long-stay serviced condos with a minimal stay of three months, and can yield 1,170 household units, including 435 continued serviced homes.
In a similar way, Lee expects up to 3 builders participating in the tender for Zion Roadway (Parcel B), with the top offer for the place priced in between $1,100 and $1,200 psf ppr.
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not released for tender right away yet are initially made available for application. It will certainly be put up for tender only when a builder sends an application with a reasonable minimum price.
