Unidentified developer has released a residential plot, named Zion Road(Parcel B), that will be offered for sale by public tender in the next month. This is according to a URA press release on April 22.
The Zion Road (Parcel A) plot is one of the reserve sites in the Government Land Sales Programme (GLS). Reserve List sites will not be released immediately for tendering, but they are made available initially for applications. The developer must submit a proposal with an acceptable price minimum before the site can be offered for sale.
The site was activated when the unnamed bidder submitted a proposal that did not go below the minimum price of $604.57 million.
The 99 year leasehold site covers 0.9ha. It is expected to produce up to 60 private residential units. According to the maximum GFA of 559.744 ft2, the application price is $1,080/sq ft per plot ratio.
Nearby is the Great World City MRT station, Zion Riverside Food Centre & River Valley Primary School, as well as Great World City .
URA’s decision to accept this bid price was not unexpected, since it is lower that the winning bid on an adjacent Zion Road site (ParcelA) which was awarded earlier this week to a jointly-owned joint venture consisting of Singapore-listed City Developments and Japanese developer Mitsui Fudosan. This joint venture made a bid of only $1.107billion. The 99 year leasehold site was the first in Singapore to trial long-stay apartments, with a 3-month minimum stay.
Although it was expected, the Zion Road, parcel B, site would not be activated as soon due to the recent awarding the Zion Road, parcel A, site and a residential plot nearby in River Valley Green that is still vacant.
This could reflect the confidence of the developers in the housing demand in the area due to its location near two MRTs and amenities such the Great World City shopping mall.
The developer who initiated the Reserve List may also be looking to secure the plots at a cheaper price in the context of the cautious market.
The trigger of the site could reflect the developer’s confidence in the site as well as the property market. This is especially true for pure residential sites, rather than those that include long-stay serviced apartments. It is much easier to sell residential homes and has fewer risks than taking on a more risky venture.
Developers will also be attracted to the potential sites along Zion Road and may believe that there is enough demand for homes within the area, even if the River Valley Green Site (ParcelA) could compete.
Recent land tenders on Orchard Boulevard, Zion Road and Parcels A and B were rather conservative and unimpressive. Therefore, future land bids might be moderate. Zion Road parcel B is expected receive at least 2 or 3 bids.
You can expect that up to 3 developers will bid on Zion Road, parcel B, with the highest bid between $1,100 – $1,200 per square foot ppr.
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