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

Lee Sze Teck, senior supervisor of information analytics at Huttons Asia, concurs that the triggering of the spot may mirror developers’ confidence in the site and in the property market, particularly for a pure residential site than one that integrates a long-stay serviced home element. “Marketing residence homes is more uncomplicated and lugs minimal dangers contrasted to carrying out a more recent venture,” he observes.

In this case, the spot was triggered when the unmarked developer had sent a proposal not less than a minimal cost of $604.57 million.

An undisclosed developer has recently triggered the release of a non commercial location, classified Zion Road (Parcel B), which are going to be started offer for sale via public tender next month, according to an April 22 announcement from URA.

Nonetheless, Wong did not expect that the Zion Road (Parcel B) site would certainly be prompted so soon, in view of the current tender award of the Zion Road (Parcel A) area and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This might reflect property developers’ assurance in the home purchasing need in this location, given the location’s attractive place near 2 MRT terminals and services such as the Great World City shopping center,” Wong notes.

The 99-year leasehold site inhabits 0.9 ha and is anticipated to generate up to 610 exclusive residential units. With an optimum permissible gross floor surface area (GFA) of approximately 559,744 sq ft, the application cost figures out to a land charge of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is near to Great World and Havelock MRT stations, Great World City, Zion Riverside Food Centre and River Valley Primary School.

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“Developers may likewise view the capacity of the places at Zion Road, and that there is enough demand for homes in the place, regardless of possible competitors from the River Valley Green (Parcel A) location,” Lee states.

The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) programme. Sites under the Reserve List are not published for tender instantly but are initially offered for application. It will be put up for tender only when a developer sends an application with an acceptable least possible price.

She includes that the builder that activated the Reserve List site could also be seizing the chance to make an application for the plot at an extra measured price, amidst the cautious market sentiment.

Given that the current land tender results at Zion Road (Parcel A) and Orchard Boulevard have actually been “lacklustre” and awarded at “relatively conservative costs”, Wong says that upcoming land proposals can regulate. She expects the Zion Road (Parcel B) spot to obtain 2 or three quotes, and the leading cost can be found in at around $1,150 to $1,250 psf ppr.

URA’s acceptance of this proposal cost is unsurprising, claims Wong Siew Ying, head of research and material at PropNex Realty, given that it is less than the winning bid for a surrounding Zion Road plot (Parcel A) that was allocated earlier this month to a joint venture in between Singapore-listed property group City Developments and Japanese realty builder Mitsui Fudosan, The joint venture handed in a single bid of $1.107 billion. The 99-year leasehold area is the first to pilot long-stay serviced houses with a minimal stay of 3 months, and can yield 1,170 housing units, including 435 long-term serviced residences.

Similarly, Lee anticipates up to three developers joining the tender for Zion Roadway (Parcel B), with the top bid for the place priced between $1,100 and $1,200 psf ppr.

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