Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
Lee Sze Teck, top supervisor of information analytics at Huttons Asia, agrees that the triggering of the site may reflect property developers’ confidence in the site and in the property market, especially for a pure domestic site than one that incorporates a long-stay serviced apartment element. “Selling residential homes is a lot more straightforward and brings lower problems compared to taking on a newer venture,” he observes.
In this case, the site was triggered when the unnamed property developer had submitted a quote not lower than a minimal amount rate of $604.57 million.
Given that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “relatively conservative rates”, Wong says that upcoming land bids can regulate. She anticipates the Zion Road (Parcel B) site to obtain 2 or three bids, and the top cost could be available in at around $1,150 to $1,250 psf ppr.
However, Wong did not assume that the Zion Road (Parcel B) site would be activated so soon, in view of the latest tender grant of the Zion Road (Parcel A) site and a close-by non commercial plot in River Valley Green (Parcel A) that is still open. “This might mirror property developers’ assurance in the home purchasing demand in that location, granted the site’s enticing place near 2 MRT stations and services such as the Great World City mall,” Wong notes.
In the same manner, Lee expects up to 3 builders taking part in the tender for Zion Road (Parcel B), with the top tender for the area valued in between $1,100 and $1,200 psf ppr.
URA’s acceptance of this quote rate is unsurprising, states Wong Siew Ying, head of analysis and content at PropNex Realty, considered that it is lower than the winning bid for an adjacent Zion Road plot (Parcel A) that was granted earlier this month to a joint project in between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint project submitted a single bid of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced flats with a minimum stay of three months, and can produce 1,170 household units, including 435 extended serviced homes.
She adds that the developer that caused the Reserve List site could additionally be taking the chance to make an application for the plot at a more evaluated price, in the middle of the careful market belief.
A confidential property developer has already generated the launch of a household location, identified Zion Road (Parcel B), which are going to be started for sale via public tender next month, according to an April 22 announcement from URA.
Lentor Modern showflat location
The 99-year leasehold site occupies 0.9 ha and is expected to produce up to 610 private non commercial units. With an optimum permitted gross floor area (GFA) of around 559,744 sq ft, the application cost figures out to a land price of around $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.
“Developers may also see the capability of the sites at Zion Road, and also there is good enough demand for houses in the area, in spite of possible competitors from the River Valley Green (Parcel A) location,” Lee claims.
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve Listing are not released for tender instantly yet are originally offered for application. It will be set up for tender only when a developer submits an application with an appropriate minimum rate.
