Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil

The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not released for tender immediately yet are originally made available for application. It will certainly be established for tender only when a builder sends an application with an appropriate least possible price.

URA’s acceptance of this proposal cost is unsurprising, says Wong Siew Ying, head of research and content at PropNex Realty, given that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was allocated earlier this month to a joint project between Singapore-listed building group City Developments and Japanese property developer Mitsui Fudosan, The joint venture provided a single proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced houses with a minimum stay of three months, and can generate 1,170 residential units, including 435 continued serviced residences.

Nonetheless, Wong did not expect that the Zion Road (Parcel B) site would be prompted so quickly, in view of the latest tender grant 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 can reflect developers’ assurance in the home purchasing need in that area, given the location’s desirable area near two MRT stops and facilities such as the Great World City shopping mall,” Wong notes.

She includes that the builder that caused the Reserve List site can additionally be seizing the possibility to get the plot at a much more measured price, amidst the careful market view.

Given that the recent land tender results at Zion Road (Parcel A) and Orchard Blvd have been “lacklustre” and awarded at “reasonably conservative rates”, Wong believes that upcoming land bids might moderate. She anticipates the Zion Road (Parcel B) site to obtain 2 or three quotes, and the top rate might can be found in at near $1,150 to $1,250 psf ppr.

In a similar way, Lee anticipates approximately three developers joining the tender for Zion Road (Parcel B), with the top offer for the area valued between $1,100 and $1,200 psf ppr.

In this situation, the spot was set off when the unmarked developer had submitted a proposal not lower than a minimal price of $604.57 million.

A concealed developer has already generated the launch 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 press release from URA.

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Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, concurs that the triggering of the spot may show programmers’ confidence in the site and in the real estate market, specifically for a pure household site than one that includes a long-stay serviced house aspect. “Selling residence homes is a lot more straightforward and brings lower dangers contrasted to taking on a newer venture,” he observes.

The 99-year leasehold place occupies 0.9 ha and is expected to yield as much as 610 exclusive housing units. With a highest permitted gross floor surface area (GFA) of approximately 559,744 sq ft, the application rate works out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The location is near to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.

“Developers may additionally find the capability of the places at Zion Road, and that there is good enough need for homes in the area, regardless of probable competitors from the River Valley Green (Parcel A) site,” Lee states.

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