The tender for a 99-year leasehold residential government land sale (GLS) site at Lentor Gardens saw GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group) joint venture partners submitting a $486.8 million bid, translating to a land rate of $985 psf per plot ratio (psf ppr).
Mark Yip, CEO of Huttons Asia, noted that the bid was the lowest for a land parcel in the Lentor precinct. This was the first residential GLS tender to see only one bid since the Silat Avenue GLS site in 2018, which was won for $1.035 billion by a consortium led by UOL Group.
The last two residential GLS sites offered in the Lentor area were Lentor Central and Lentor Hill (Parcel B). Lentor Central was awarded to a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers with a $481.03 million bid ($1,108 psf ppr). The top bidder for Lentor Hills (Parcel B) was TID (a joint venture between Hong Leong Group and Mitsui Fudosan) with a bid of $276.36 million ($1,130 psf ppr).
Prior to this, a GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022 and the 598-unit Lentor Hills Residences, developed by GuocoLand, Hong Leong Holdings and TID, is expected to be launched soon.
GuocoLand’s launch of the 605-unit Lentor Modern integrated development saw 84% of the units sold on launch weekend. Based on caveats lodged, the project is 88% sold at an average price of $2,104 psf.
Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch at the Lentor Gardens site could see units priced around $1,950 to $2,050 psf.
It is estimated that all seven residential sites at Lentor could bring about some 3,500 units to the area and possibly 11,000 new residents. Potential homebuyers are likely to be drawn to the connectivity to public transport and recreational facilities, as well as its proximity to schools such as CHIJ St Nicholas Girls’ School.
GuocoLand envisaged the development to comprise of 533 units with 600 sqm of childcare facilities. Leonard Tay, head of research at Knight Frank Singapore, points out that developers may have been deterred by the risky outlook and the risk of being subject to Additional Buyer’s Stamp Duty if they are unable to sell all units within five years.
Two other GLS sites at Lentor, a at Lentor Central and Lentor Gardens, are still up for sale under the 1H2023 GLS Programme with Lentor Central expected to launch for tender this month.
The tender for the Lentor Gardens government land sale (GLS) site closed today with the joint venture of GuocoLand and Intrepid Investments submitting a $486.8 million bid and setting a new record for a land parcel in the Lentor precinct – a land rate of $985 psf per plot ratio (psf ppr).
GuocoLand are envisioning a 533-unit high-end residential development along with 600 sqm of childcare facilities. This is to complement the two other upcoming developments – Lentor Modern and Lentor Hills Residences – in their plans to transform the Lentor Hills estate to a premium residential area.
The last two residential GLS sites in Lentor, Lentor Central and Lentor Hill (Parcel B), were awarded last September. Lentor Central fetched the highest bid at $481.03 million ($1,108 psf ppr), while the top bidder for Lentor Hills (Parcel B) was TID (a joint venture between Hong Leong Group and Mitsui Fudosan) with a bid of $276.36 million ($1,130 psf ppr).
Meanwhile, Lentor Modern integrated development was launched last September and already saw 84% of its units being sold on launch weekend with an average price of $2,104 psf. GuocoLand purchased the GLS site for $784.1 million ($1,204 psf ppr) in July 2021.
Despite the fact that seven GLS sites in Lentor could potentially bring about some 3,500 new units to the area and 11,000 new residents, its proximity to public transport and recreational facilities as well as schools like CHIJ St Nicholas Girls’ School makes the area desirable to potential homebuyers.
OrangeTee & Tie’s CEO Steven Tan expects units at the Lentor Gardens site to be priced at around $1,950 to $2,050 psf. Two other GLS sites at Lentor; one at Lentor Central and Laurntor Gardens are still available for sale in the 1H2023 GLS Programme, with Lentor Central expected to launch for tender this month.