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) program. Spots under the Reserve List are not published for tender right away however are originally offered for application. It will be put up for tender only when a builder sends an application with a reasonable least possible rate.
In this situation, the location was caused when the unmarked property developer had actually submitted a bid not less than a minimal price of $604.57 million.
She includes that the developer that activated the Reserve List site can additionally be seizing the chance to make an application for the plot at an extra assessed price, in the middle of the cautious market belief.
In a similar way, Lee expects as much as 3 builders joining the tender for Zion Roadway (Parcel B), with the top tender for the place priced between $1,100 and $1,200 psf ppr.
Given that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “relatively conservative costs”, Wong suggests that upcoming land proposals can regulate. She anticipates the Zion Road (Parcel B) site to obtain two or 3 proposals, and the leading rate might can be found in at around $1,150 to $1,250 psf ppr.
Lee Sze Teck, senior director 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 domestic location than one that includes a long-stay serviced apartment aspect. “Promoting residential homes is more uncomplicated and brings lower problems compared to undertaking a newer venture,” he observes.
However, Wong did not anticipate that the Zion Road (Parcel B) site would be triggered so quickly, in view of the recent tender grant of the Zion Road (Parcel A) site and a nearby non commercial plot in River Valley Green (Parcel A) that is still open. “This could mirror property developers’ assurance in the home purchasing demand in this location, given the site’s attractive location near 2 MRT terminals and services such as the Great World City mall,” Wong notes.
A concealed developer has generated the launch of a non commercial site, labelled Zion Road (Parcel B), which are going to be started offer for sale via public tender next month, according to an April 22 news release from URA.
“Developers may likewise view the capability of the sites at Zion Road, which there is good enough interest for houses in the place, in spite of possible competitors from the River Valley Green (Parcel A) location,” Lee claims.
The 99-year leasehold place inhabits 0.9 ha and is anticipated to yield up to 610 exclusive residential units. With an optimum permissible gross floor area (GFA) of around 559,744 sq ft, the application rate works out to a land charge of about $1,080 psf per plot ratio (ppr) based on GFA. The site is close to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
URA’s acknowledgment of this bid cost is unsurprising, claims Wong Siew Ying, head of analysis and content at PropNex Realty, considered 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 in between Singapore-listed property group City Developments and Japanese realty builder Mitsui Fudosan, The joint venture handed in an one proposal of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced flats with a minimum stay of three months, and can generate 1,170 housing units, including 435 extended serviced homes.
