Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
Lee Sze Teck, senior supervisor of information analytics at Huttons Asia, agrees that the triggering of the site may reflect property developers’ confidence in the site and in the property market, particularly for a pure property location than one that integrates a long-stay serviced apartment element. “Selling residential homes is much more simple and lugs lower problems contrasted to embarking on a more recent venture,” he observes.
URA’s acknowledgment of this bid cost is unsurprising, claims Wong Siew Ying, head of research study and material at PropNex Realty, considered 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 between Singapore-listed property group City Developments and Japanese real estate developer Mitsui Fudosan, The joint project provided an one quote of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced condos with a minimal stay of 3 months, and can generate 1,170 housing units, including 435 extended serviced flats.
Cuscaden Reserve SC Global & New World Development
“Developers might additionally view the capacity of the places at Zion Road, and that there is enough need for houses in the place, despite potential competition from the River Valley Green (Parcel A) location,” Lee claims.
Given that the current land tender end results at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “fairly conservative prices”, Wong suggests that upcoming land proposals could regulate. She anticipates the Zion Road (Parcel B) site to obtain two or 3 bids, and the top price can be available in at near $1,150 to $1,250 psf ppr.
In this case, the location was caused when the unmarked developer had handed in a bid not less than a minimal cost of $604.57 million.
A hidden developer has recently triggered the launch of a housing location, 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.
The 99-year leasehold spot occupies 0.9 ha and is anticipated to generate as much as 610 exclusive housing units. With a maximum allowable gross floor surface area (GFA) of approximately 559,744 sq ft, the application cost figures out to a land price of around $1,080 psf per plot ratio (ppr) based upon GFA. The location is close to Great World and Havelock MRT stations, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
However, Wong did not assume that the Zion Road (Parcel B) place would certainly be triggered so soon, because the recent tender award of the Zion Street (Parcel A) area and a close-by non commercial plot in River Valley Green (Parcel A) that is still open. “This could show property developers’ assurance in the home buying demand in this location, provided the site’s enticing location near 2 MRT stops and facilities such as the Great World City shopping center,” Wong notes.
She adds that the developer that activated the Reserve List site can additionally be seizing the possibility to make an application for the plot at a more measured price, amid the careful market view.
The Zion Road (Parcel B) plot is a reserve spot on the 1H2024 Government Land Sales (GLS) programme. Sites under the Reserve List are not issued for tender immediately but are at first made available for application. It will certainly be put up for tender only when a property developer sends an application with a reasonable minimum cost.
In the same manner, Lee expects up to three property developers taking part in the tender for Zion Roadway (Parcel B), with the leading bid for the area priced in between $1,100 and $1,200 psf ppr.
