Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
A concealed developer has recently generated the launch of a housing location, classified Zion Road (Parcel B), which are going to be launched for sale via public tender next month, according to an April 22 news release from URA.
“Developers may additionally view the capacity of the sites at Zion Road, which there is sufficient need for homes in the area, in spite of probable competition from the River Valley Green (Parcel A) location,” Lee says.
In this situation, the location was triggered when the unmarked property developer had submitted a bid not less than a minimum price of $604.57 million.
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, concurs that the triggering of the site might mirror property developers’ confidence in the site and in the real estate market, particularly for a pure domestic site than one that integrates a long-stay serviced apartment element. “Selling residence homes is much more straightforward and carries lower dangers compared to embarking on a more recent venture,” he observes.
However, Wong did not anticipate that the Zion Road (Parcel B) site would be activated so quickly, in view of the current tender award of the Zion Street (Parcel A) site and a close-by non commercial plot in River Valley Green (Parcel A) that is still open. “This might show property developers’ confidence in the home buying need in this area, granted the location’s enticing place near two MRT stops and features such as the Great World City shopping mall,” Wong notes.
The 99-year leasehold place occupies 0.9 ha and is anticipated to produce up to 610 exclusive non commercial units. With a maximum acceptable gross floor area (GFA) of about 559,744 sq ft, the application rate works out to a land charge of around $1,080 psf per plot ratio (ppr) based on GFA. The location is close to Great World and Havelock MRT terminals, Great World City, Zion Riverside Food Centre and River Valley Primary School.
The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve List are not released for tender immediately yet are originally offered for application. It will certainly be put up for tender only when a builder sends an application with a reasonable minimum cost.
The Arcady @ Boon Keng KSH Holdings Limited
URA’s compliance of this proposal price is unsurprising, claims Wong Siew Ying, head of research study and material at PropNex Realty, given that it is less than the winning bid for a nearby Zion Road plot (Parcel A) that was granted earlier this month to a joint project in between Singapore-listed building group City Developments and Japanese realty property developer Mitsui Fudosan, The joint project handed in an one quote of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced condos with a minimum stay of 3 months, and can yield 1,170 residential units, including 435 continued serviced residences.
Similarly, Lee expects up to 3 builders joining the tender for Zion Road (Parcel B), with the leading tender for the site priced in between $1,100 and $1,200 psf ppr.
She adds that the developer that caused the Reserve List site can additionally be seizing the opportunity to look for the plot at a more measured rate, amidst the cautious market sentiment.
Considered that the current land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “reasonably conservative costs”, Wong says that upcoming land quotes might moderate. She expects the Zion Road (Parcel B) site to get two or three quotes, and the leading cost might can be found in at approximately $1,150 to $1,250 psf ppr.
