Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The 99-year leasehold spot occupies 0.9 ha and is expected to produce up to 610 exclusive non commercial units. With a maximum permitted gross floor surface area (GFA) of about 559,744 sq ft, the application rate figures out to a land price of about $1,080 psf per plot ratio (ppr) based on GFA. The site is nearby to Great World and Havelock MRT terminals, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
In this instance, the spot was caused when the unnamed property developer had submitted a quote not lower than a minimal cost of $604.57 million.
A concealed developer has recently generated the launch of a non commercial site, labelled Zion Road (Parcel B), which are going to be released for sale via public tender next month, according to an April 22 news release from URA.
Blossoms By The Park condo price
She adds that the builder that caused the Reserve List site can also be seizing the possibility to get the plot at a more assessed price, amidst the alert market view.
Similarly, Lee anticipates up to 3 developers joining the tender for Zion Road (Parcel B), with the leading offer for the place valued between $1,100 and $1,200 psf ppr.
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 immediately however are initially made available for application. It will be put up for tender only when a property developer submits an application with an acceptable least possible cost.
Lee Sze Teck, senior supervisor of data analytics at Huttons Asia, agrees that the triggering of the site may reflect programmers’ confidence in the site and in the real estate market, specifically for a pure household location than one that incorporates a long-stay serviced house aspect. “Promoting residence homes is much more straightforward and carries lesser risks contrasted to taking on a more recent venture,” he observes.
“Developers may additionally find the capability of the places at Zion Road, and also there is sufficient demand for houses in the place, despite potential competitors from the River Valley Green (Parcel A) site,” Lee claims.
Nonetheless, Wong did not anticipate that the Zion Road (Parcel B) place would certainly be activated so soon, because the latest tender award of the Zion Road (Parcel A) site and a neighboring housing plot in River Valley Green (Parcel A) that is still open. “This can show property developers’ assurance in the home purchasing need in that area, given the site’s appealing place near two MRT stops and amenities such as the Great World City mall,” Wong notes.
Considered that the recent land tender results at Zion Road (Parcel A) and Orchard Boulevard have already been “lacklustre” and awarded at “reasonably conservative rates”, Wong opines that upcoming land proposals might regulate. She expects the Zion Road (Parcel B) spot to receive two or three quotes, and the top cost could be available in at near $1,150 to $1,250 psf ppr.
URA’s acknowledgment of this quote cost is unsurprising, claims Wong Siew Ying, head of analysis and content at PropNex Realty, given that it is lower than the winning bid for a nearby 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 property developer Mitsui Fudosan, The joint project submitted an one quote of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced flats with a minimal stay of 3 months, and can generate 1,170 household units, including 435 long-term serviced apartments.
