Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A concealed property developer has recently generated the release of a housing site, classified Zion Road (Parcel B), which are going to be launched offer for sale via public tender next month, according to an April 22 press release from URA.
In the same manner, Lee expects approximately 3 property developers participating in the tender for Zion Roadway (Parcel B), with the top tender for the area priced between $1,100 and $1,200 psf ppr.
She adds that the property developer that caused the Reserve List site could additionally be taking the possibility to look for the plot at an extra assessed rate, in the middle of the cautious market sentiment.
The 99-year leasehold place inhabits 0.9 ha and is anticipated to generate up to 610 private non commercial units. With a maximum permitted gross floor surface area (GFA) of approximately 559,744 sq ft, the application cost works out to a land price of about $1,080 psf per plot ratio (ppr) based on GFA. The site is near to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
However, Wong did not anticipate that the Zion Road (Parcel B) place would be triggered so soon, in view of the current tender grant of the Zion Road (Parcel A) area and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This could reflect developers’ assurance in the home purchasing need in that area, granted the location’s appealing place near two MRT stations and services such as the Great World City mall,” Wong notes.
URA’s compliance of this bid cost is unsurprising, states Wong Siew Ying, head of research and material at PropNex Realty, given 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 between Singapore-listed real estate group City Developments and Japanese property developer Mitsui Fudosan, The joint venture provided an one bid of $1.107 billion. The 99-year leasehold area is the initial to pilot long-stay serviced condos with a minimum stay of 3 months, and can produce 1,170 household units, including 435 continued serviced residences.
In this situation, the spot was set off when the unnamed property developer had handed in a bid not less than a minimal price of $604.57 million.
“Developers may also find the potential of the sites at Zion Road, and that there is good enough need for residences in the area, in spite of possible competition from the River Valley Green (Parcel A) location,” Lee states.
The Zion Road (Parcel B) plot is a reservation site on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve List are not issued for tender right away but are originally made available for application. It will be put up for tender only when a property developer sends an application with an appropriate minimum price.
Considered that the current land tender results at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “reasonably conservative prices”, Wong believes that upcoming land proposals could moderate. She anticipates the Zion Road (Parcel B) site to get 2 or three bids, and the top cost might can be found in at approximately $1,150 to $1,250 psf ppr.
Lee Sze Teck, senior director of information analytics at Huttons Asia, concurs that the triggering of the site may reflect property developers’ confidence in the site and in the property market, particularly for a pure household location than one that incorporates a long-stay serviced house component. “Selling residence homes is extra simple and lugs minimal dangers contrasted to carrying out a more recent endeavor,” he observes.
