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 projected to produce up to 610 exclusive residential units. With a highest permissible gross floor area (GFA) of approximately 559,744 sq ft, the application rate works out to a land rate 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 Waterfront Food Centre and River Valley Primary School.

Lee Sze Teck, senior director of information analytics at Huttons Asia, concurs that the triggering of the site might reflect programmers’ confidence in the site and in the real estate market, especially for a pure residential site than one that includes a long-stay serviced house aspect. “Promoting residence homes is much more simple and carries minimal problems contrasted to carrying out a more recent venture,” he observes.

“Developers may likewise find the capability of the areas at Zion Road, and that there is adequate interest for houses in the area, regardless of possible competitors from the River Valley Green (Parcel A) site,” Lee claims.

An undisclosed developer has already set off the launch of a housing site, labelled Zion Road (Parcel B), which will be released for sale via public tender next month, according to an April 22 press release from URA.

Tembusu Grand condominium

URA’s acknowledgment of this proposal price is unsurprising, says Wong Siew Ying, head of research and material at PropNex Realty, considered that it is lower than the winning bid for a surrounding Zion Road plot (Parcel A) that was awarded earlier this month to a joint project in between Singapore-listed real estate group City Developments and Japanese real estate builder Mitsui Fudosan, The joint venture provided a single proposal of $1.107 billion. The 99-year leasehold site is the very first to pilot long-stay serviced apartments with a minimal stay of three months, and can generate 1,170 residential units, including 435 continued serviced flats.

She adds that the developer that set off the Reserve List site can even be taking the chance to obtain the plot at a more assessed rate, amidst the cautious market view.

In the same manner, Lee expects up to three developers participating in the tender for Zion Road (Parcel B), with the top bid for the site valued in between $1,100 and $1,200 psf ppr.

Considered that the recent land tender outcomes at Zion Road (Parcel A) and Orchard Blvd have already been “lacklustre” and awarded at “reasonably conservative rates”, Wong says that upcoming land proposals could regulate. She expects the Zion Road (Parcel B) spot to receive 2 or 3 proposals, and the leading rate could come in at approximately $1,150 to $1,250 psf ppr.

The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) program. Spots under the Reserve List are not released for tender instantly but are originally made available for application. It will be established for tender only when a builder sends an application with an acceptable least possible rate.

However, Wong did not assume that the Zion Road (Parcel B) site would be prompted so soon, because the current tender award of the Zion Road (Parcel A) area and a neighboring non commercial plot in River Valley Green (Parcel A) that is still open. “This can show developers’ assurance in the home buying need in this area, given the location’s enticing area near two MRT stations and amenities such as the Great World City shopping mall,” Wong notes.

In this situation, the site was caused when the unnamed property developer had sent a quote not lower than a minimal cost of $604.57 million.

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