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 area on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not issued for tender instantly however are originally made available for application. It will be set up for tender only when a developer sends an application with an acceptable least possible price.
A confidential property developer has already generated the launch of a household location, identified Zion Road (Parcel B), which will be started offer for sale via public tender next month, according to an April 22 news release from URA.
The 99-year leasehold spot occupies 0.9 ha and is expected to produce as much as 610 exclusive housing units. With a highest allowable gross floor surface area (GFA) of approximately 559,744 sq ft, the application price works out to a land price 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 Waterfront Food Centre and River Valley Primary School.
The Residence at W Sentosa Cove
In the same manner, Lee expects as much as 3 property developers taking part in the tender for Zion Roadway (Parcel B), with the leading tender for the site priced in between $1,100 and $1,200 psf ppr.
In this situation, the spot was caused when the unnamed property developer had handed in a bid not less than a minimal cost of $604.57 million.
“Developers might also view the capacity of the areas at Zion Road, which there is adequate interest for homes in the area, in spite of probable competitors from the River Valley Green (Parcel A) site,” Lee claims.
She includes that the developer that caused the Reserve List site could also be taking the possibility to make an application for the plot at a much more evaluated cost, amidst the careful market view.
Lee Sze Teck, top supervisor of data analytics at Huttons Asia, concurs that the triggering of the site may mirror property developers’ confidence in the site and in the property market, especially for a pure household site than one that integrates a long-stay serviced house aspect. “Promoting residence homes is extra straightforward and carries minimal dangers compared to undertaking a newer endeavor,” he observes.
However, Wong did not anticipate that the Zion Road (Parcel B) site would be set off so soon, in view of the current tender award of the Zion Street (Parcel A) area and a neighboring residential plot in River Valley Green (Parcel A) that is still open. “This can show developers’ confidence in the home purchasing interest in that area, provided the location’s attractive place near two MRT stations and services such as the Great World City mall,” Wong notes.
Considered that the current land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “reasonably conservative prices”, Wong suggests that upcoming land quotes can regulate. She expects the Zion Road (Parcel B) spot to receive two or three quotes, and the top rate might be available in at near $1,150 to $1,250 psf ppr.
URA’s acknowledgment of this quote price is unsurprising, says 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 granted earlier this month to a joint project between Singapore-listed real estate group City Developments and Japanese real estate developer Mitsui Fudosan, The joint project provided a single quote of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced flats with a minimal stay of 3 months, and can generate 1,170 residential units, including 435 continued serviced apartments.
