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

The 99-year leasehold place occupies 0.9 ha and is expected to generate as much as 610 private housing units. With a maximum permitted gross floor area (GFA) of around 559,744 sq ft, the application rate works out to a land charge of around $1,080 psf per plot ratio (ppr) based upon GFA. The site is nearby to Great World and Havelock MRT stops, Great World City, Zion Riverside Food Centre and River Valley Primary School.

Considered that the recent land tender end results at Zion Road (Parcel A) and Orchard Boulevard have been “lacklustre” and awarded at “fairly conservative costs”, Wong suggests that upcoming land bids can moderate. She anticipates the Zion Road (Parcel B) site to obtain 2 or three quotes, and the leading price can be available in at near $1,150 to $1,250 psf ppr.

She adds that the developer that caused the Reserve List site might even be seizing the possibility to request the plot at an extra evaluated cost, amidst the cautious market belief.

In this instance, the spot was triggered when the unnamed developer had submitted a proposal not lower than a minimum rate of $604.57 million.

The Zion Road (Parcel B) plot is a reserve site on the 1H2024 Government Land Sales (GLS) programme. Locations under the Reserve List are not released for tender instantly yet are at first made available for application. It will certainly be established for tender only when a property developer sends an application with an acceptable minimum cost.

“Developers may also find the capability of the areas at Zion Road, which there is adequate need for houses in the location, despite probable competition from the River Valley Green (Parcel A) location,” Lee claims.

Cape Royale floor plan

Lee Sze Teck, top director of data analytics at Huttons Asia, concurs that the triggering of the site may mirror developers’ confidence in the site and in the property market, particularly for a pure domestic location than one that integrates a long-stay serviced apartment element. “Marketing residential homes is much more uncomplicated and carries lower problems contrasted to taking on a more recent venture,” he observes.

Nonetheless, Wong did not anticipate that the Zion Road (Parcel B) site would certainly be prompted so quickly, because the current tender grant of the Zion Road (Parcel A) area and a nearby residential plot in River Valley Green (Parcel A) that is still open. “This can show property developers’ confidence in the home purchasing demand in this area, provided the site’s desirable location near two MRT stops and features such as the Great World City mall,” Wong notes.

A concealed property developer has set off the launch of a household site, identified Zion Road (Parcel B), which are going to be released for sale via public tender next month, according to an April 22 press release from URA.

Similarly, Lee expects up to 3 developers participating in the tender for Zion Road (Parcel B), with the top offer for the area valued between $1,100 and $1,200 psf ppr.

URA’s acknowledgment of this quote rate is unsurprising, claims Wong Siew Ying, head of research and content at PropNex Realty, considered that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was awarded earlier this month to a joint venture in between Singapore-listed property group City Developments and Japanese property developer Mitsui Fudosan, The joint venture handed in an one quote of $1.107 billion. The 99-year leasehold site is the first to pilot long-stay serviced houses with a minimal stay of three months, and can produce 1,170 residential units, including 435 long-term serviced residences.