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

A concealed developer has recently set off the release of a housing site, classified Zion Road (Parcel B), which will be released for sale via public tender next month, according to an April 22 press release from URA.

The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) programme. Spots under the Reserve List are not issued for tender immediately but are initially made available for application. It will certainly be established for tender only when a property developer submits an application with an acceptable minimum cost.

Lee Sze Teck, top director of data analytics at Huttons Asia, agrees that the triggering of the spot may show developers’ confidence in the site and in the real estate market, particularly for a pure property site than one that integrates a long-stay serviced home component. “Promoting residential homes is more simple and brings lower dangers contrasted to taking on a more recent endeavor,” he observes.

In this situation, the location was caused when the unnamed property developer had sent a quote not less than a minimum rate of $604.57 million.

She adds that the builder that activated the Reserve List site could also be taking the possibility to make an application for the plot at a much more evaluated rate, amidst the alert market sentiment.

In a similar way, Lee anticipates up to three developers participating in the tender for Zion Road (Parcel B), with the top tender for the site valued in between $1,100 and $1,200 psf ppr.

URA’s acknowledgment of this quote cost is unsurprising, says Wong Siew Ying, head of analysis and material at PropNex Realty, given that it is less than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint venture between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint project submitted a single quote of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced apartments with a minimum stay of 3 months, and can produce 1,170 residential units, including 435 continued serviced residences.

One Sophia condo

“Developers might additionally find the capacity of the sites at Zion Road, and that there is good enough interest for residences in the area, despite potential competitors from the River Valley Green (Parcel A) location,” Lee claims.

Nevertheless, Wong did not anticipate that the Zion Road (Parcel B) place would certainly be triggered so soon, in view of the latest tender award of the Zion Street (Parcel A) site and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This can reflect property developers’ confidence in the home purchasing need in this location, given the location’s attractive area near two MRT stations and services such as the Great World City shopping center,” Wong notes.

The 99-year leasehold site inhabits 0.9 ha and is expected to yield as much as 610 exclusive residential units. With an optimum allowable gross floor surface area (GFA) of about 559,744 sq ft, the application price works out to a land rate of around $1,080 psf per plot ratio (ppr) based upon GFA. The area is close to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.

Considered that the current land tender outcomes at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “relatively conservative rates”, Wong suggests that upcoming land bids might regulate. She anticipates the Zion Road (Parcel B) site to get 2 or three proposals, and the leading rate might come in at near $1,150 to $1,250 psf ppr.


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