URA awards Zion Road site to CDL-Mitsui Fudosan JV, and Upper Thomson Road site to GuocoLand-Hong Leong JV
The JV partners have actually already suggested that they plan to establish the spot right into a mixed-use property consisting of 2 non commercial blocks, one that is 69 floors and the other 64 floors, with around 740 housing systems for sale in overall. The planned development is going to even comprise a retail podium, and a 35-storey block with concerning 290 rental home units.
The CDL-Mitsui Fudosan JV was the only one to submit a proposal for the Zion Road location the moment the tender closed on April 4. Similarly, the GuocoLand-Hong Leong JV even handed in the single bid for the Upper Thomson Road GLS location when that tender closed on April 4. Eugene Lim, crucial executive officer, period Singapore, commented that both GLS locations are relatively ‘untried’. “The state may have thought about the tender prices submitted for these sites to be affordable, taking into consideration the problems that these designers are prepared to tackle,” he states.
Tan foresees that the new property development could see a possible launch start-off rate of just under S$ 2,000 psf. “As the Upper Thomson Road Parcel B site would certainly be the first in a rather undeveloped region without skyscraper residences, there is some first mover advantage in a picturesque precinct,” she states.
Marina View Residences condo floor plan
URA has recently awarded the tender for 2 just recently closed government land sale (GLS) sites. A residential location at Zion Road was awarded to a mutual project (JV) between City Developments Ltd (CDL) and Mitsui Fudosan, while a different GLS site at Upper Thomson Roadway was awarded to a JV within GuocoLand and Hong Leong Holdings.
This was echoed by Tricia Song, head of research study, Singapore and Southeast Asia, CBRE. She mentions that the bid for the Zion Road location is a “significant” 30% lower than the similar land parcel throughout the road, which has been developed into the 455-unit Riviere. “The approval of the lower-than-expected proposal price in spite of its being the single proposal, is an acknowledgment that market conditions have actually changed over the past 5-6 years considering that the neighboring spot was granted, given aspects such as increased ABSD, greater construction fees, financing costs, along with risk costs for the (long-stay serviced apartments) part which is a brand-new property class,” says Track.
Wong Siew Ying, head of research and content at PropNex Real estate, mentions that even though the land costs were beneath market assumptions URA likely looked into various other aspects in evaluating the proposals. “For instance, the Upper Thomson Road plot remaining in a fairly untried brand-new housing precinct, and the Zion Roadway story being the initial property development to comprise the long-stay serviced condos,” she says.
The $905 psf ppr bid put in by GuocoLand-Hong Leong is “reasonable” as it is a much bigger site compared to the Zion Roadway plot, claims Yip, including: “Hence the quantum is bigger, and with a bigger quantum the possibilities are similarly higher also”.
CDL and Mitsui Fudosan sent a $1.107 billion offer for the 164,439 sq ft site, which equates to $1,202 psf per plot ratio (ppr). The area has a plot ratio of 5.6 and is zoned non commercial with industrial on the 1st storey. The new project might produce as much as 1,170 brand-new non commercial units. This is also the first location released by the government that included devices under the new long-term serviced residence scheme.
At the same time, the GuocoLand-Hong Leong JV submitted a bid of $779.6 million for the 344,700 sq ft site along Upper Thomson Road. The rate translates to $905 psf ppr.
According to a GuocoLand representative: “The Upper Thomson Road spot is positioned in an exclusive landed housing spot, similar to the Lentor Hills estate which we have established as a brand-new superior exclusive residence estate through our projects such as Lentor Modern and Lentor Mansion. We are delighted to have the opportunity to uplift another new area at Springleaf with our placemaking abilities. The future growth, which is offered by the Springleaf MRT terminal on the Thomson-East Coast Line, will have about 940 units.”
Mark Yip, Chief Executive Officer of Huttons Asia, states that the eye-watering price for the spot is a “substantial dedication in the face of high rate of interest. Thinking about these dangers, the proposal of $1,202 psf ppr is fair”.
” At a land cost of S$ 1,202 psf ppr, the breakeven price might potentially extend in between S$ 2,400 psf and S$ 2,600 psf basing on technical, material and layout considerations, with launch prices starting from S$ 2,700 psf,” claims Alice Tan, head of consultancy at Knight Frank Singapore. She includes that the new development could launch at about S$ 3,000 psf and this price would not only be tasty, but attractive for Singaporean buyers and permanent locals, whether for job or financial investment.
