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

The 99-year leasehold place inhabits 0.9 ha and is expected to yield up to 610 exclusive residential units. With a maximum permissible gross floor surface area (GFA) of about 559,744 sq ft, the application cost figures out to a land price of about $1,080 psf per plot ratio (ppr) based on GFA. The location is near to Great World and Havelock MRT stations, Great World City, Zion Waterfront Food Centre and River Valley Primary School.

A concealed developer has already triggered the release of a household location, labelled Zion Road (Parcel B), which are going to be started offer for sale via public tender next month, according to an April 22 news release from URA.

“Developers might likewise find the potential of the places at Zion Road, and also there is enough demand for residences in the place, regardless of potential competitors from the River Valley Green (Parcel A) location,” Lee says.

In the same manner, Lee anticipates up to three builders taking part in the tender for Zion Road (Parcel B), with the leading bid for the site valued between $1,100 and $1,200 psf ppr.

Considered that the recent land tender results at Zion Road (Parcel A) and Orchard Blvd have been “lacklustre” and awarded at “relatively conservative costs”, Wong says that upcoming land bids can moderate. She expects the Zion Road (Parcel B) spot to get 2 or three quotes, and the leading price can come in at approximately $1,150 to $1,250 psf ppr.

Arina East Residences price

URA’s compliance of this bid rate is unsurprising, states Wong Siew Ying, head of research and material at PropNex Realty, given that it is less than the winning bid for a nearby Zion Road plot (Parcel A) that was awarded earlier this month to a joint project between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint project handed in a single bid of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced houses with a minimal stay of three months, and can produce 1,170 residential units, including 435 extended serviced homes.

In this instance, the spot was triggered when the anonymous developer had actually submitted a quote not less than a minimal amount rate of $604.57 million.

The Zion Road (Parcel B) plot is a reservation area on the 1H2024 Government Land Sales (GLS) program. Sites under the Reserve List are not released for tender instantly yet are at first made available for application. It will certainly be put up for tender only when a developer sends an application with an acceptable least possible cost.

Nonetheless, Wong did not assume that the Zion Road (Parcel B) site would be set off so quickly, because the latest tender award of the Zion Street (Parcel A) site and a neighboring housing plot in River Valley Green (Parcel A) that is still open. “This might mirror property developers’ confidence in the home purchasing interest in that area, given the location’s enticing area near 2 MRT stations and facilities such as the Great World City shopping center,” Wong notes.

She includes that the developer that set off the Reserve List site could also be seizing the possibility to look for the plot at an extra evaluated price, in the middle of the alert market view.

Lee Sze Teck, senior director of information 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 domestic location than one that integrates a long-stay serviced home element. “Selling residence homes is extra uncomplicated and carries minimal risks compared to taking on a newer venture,” he observes.

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