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 spot on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve List are not released for tender instantly however are originally offered for application. It will certainly be established for tender only when a property developer sends an application with an acceptable minimum price.
“Developers may likewise view the potential of the sites at Zion Road, which there is sufficient demand for homes in the location, despite potential competitors from the River Valley Green (Parcel A) site,” Lee says.
Similarly, Lee expects as much as 3 builders joining the tender for Zion Roadway (Parcel B), with the top bid for the site priced in between $1,100 and $1,200 psf ppr.
Given that the current land tender results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “fairly conservative prices”, Wong says that upcoming land proposals might moderate. She anticipates the Zion Road (Parcel B) spot to receive two or three bids, and the leading rate could come in at around $1,150 to $1,250 psf ppr.
In this case, the site was set off when the unmarked developer had actually submitted a bid not less than a minimal amount rate of $604.57 million.
She adds that the builder that caused the Reserve List site can even be taking the chance to apply for the plot at a much more assessed price, amid the careful market view.
Lee Sze Teck, top director of information analytics at Huttons Asia, concurs that the triggering of the site might mirror developers’ confidence in the site and in the property market, especially for a pure household location than one that integrates a long-stay serviced house element. “Marketing residence homes is more simple and carries lesser dangers contrasted to embarking on a more recent venture,” he observes.
A hidden developer has generated the release of a housing site, classified Zion Road (Parcel B), which are going to be launched for sale via public tender next month, according to an April 22 press release from URA.
Nevertheless, Wong did not anticipate that the Zion Road (Parcel B) site would be set off so soon, because the recent tender grant of the Zion Street (Parcel A) site and a close-by housing plot in River Valley Green (Parcel A) that is still open. “This might mirror property developers’ confidence in the home buying demand in that area, provided the location’s desirable location near 2 MRT stations and amenities such as the Great World City mall,” Wong notes.
URA’s acceptance of this bid cost is unsurprising, states Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was awarded earlier this month to a joint project in between Singapore-listed real estate group City Developments and Japanese real estate builder Mitsui Fudosan, The joint project handed in an one bid 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 produce 1,170 residential units, including 435 long-term serviced residences.
The 99-year leasehold site occupies 0.9 ha and is expected to produce approximately 610 private residential units. With a maximum acceptable gross floor surface area (GFA) of about 559,744 sq ft, the application cost figures out to a land rate of about $1,080 psf per plot ratio (ppr) based on GFA. The area is close to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
