Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A confidential property developer has set off the launch of a housing location, identified Zion Road (Parcel B), which are going to be started for sale via public tender next month, according to an April 22 announcement from URA.
“Developers might also see the capability of the areas at Zion Road, and that there is sufficient interest for homes in the location, despite probable competition from the River Valley Green (Parcel A) location,” Lee claims.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “reasonably conservative rates”, Wong believes that upcoming land bids can regulate. She expects the Zion Road (Parcel B) spot to receive 2 or 3 proposals, and the top cost can come in at around $1,150 to $1,250 psf ppr.
Chuan Park Lorong Chuan Road price
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve Listing are not published for tender immediately however are at first made available for application. It will certainly be put up for tender only when a builder sends an application with an acceptable minimum price.
She includes that the developer that activated the Reserve List site might even be seizing the opportunity to look for the plot at a more evaluated rate, amid the cautious market sentiment.
However, Wong did not assume that the Zion Road (Parcel B) place would certainly be set off so soon, because the latest tender award of the Zion Street (Parcel A) site and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This might show developers’ assurance in the home purchasing demand in that location, provided the location’s enticing place near two MRT stations and services such as the Great World City shopping center,” Wong notes.
Similarly, Lee anticipates up to three developers participating in the tender for Zion Roadway (Parcel B), with the leading bid for the place valued between $1,100 and $1,200 psf ppr.
The 99-year leasehold site occupies 0.9 ha and is projected to generate up to 610 exclusive housing units. With a highest permitted gross floor area (GFA) of about 559,744 sq ft, the application cost works out to a land rate of around $1,080 psf per plot ratio (ppr) based on GFA. The area is close to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.
URA’s acceptance of this proposal price is unsurprising, states Wong Siew Ying, head of analysis and content at PropNex Realty, considered that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was allocated earlier this month to a joint venture in between Singapore-listed property group City Developments and Japanese real estate property developer Mitsui Fudosan, The joint project provided an one quote of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced condos with a minimum stay of three months, and can yield 1,170 housing units, including 435 long-term serviced flats.
Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, agrees that the triggering of the spot may mirror developers’ confidence in the site and in the real estate market, specifically for a pure property location than one that includes a long-stay serviced apartment aspect. “Promoting residence homes is much more simple and carries minimal risks compared to embarking on a newer endeavor,” he observes.
In this instance, the site was caused when the unmarked developer had sent a quote not less than a minimum cost of $604.57 million.
