Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
The residential government land sale (GLS) site at Lentor Central and Champions Way attracted two and four bids respectively. The Lentor Central site drew a top bid of $435.1 million from a consortium of Hong Leong Holdings, GuocoLand, and CSC Land Group, equivalent to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft site. The bid was 5.9% higher than the $410.8 million ($927 psf ppr) submitted by Frasers Property.
Hong Leong Holdings expressed their delight with the highest bid for the Lentor Central site; their fourth site in the Lentor Hills Estate area. The plan is to construct a private residential development with approximately 475 units in two high-rise blocks, located near Lentor MRT station and a variety of nearby amenities.
Despite the high bid, it is marginally lower than what GuocoLand and Hong Leong Holdings paid for the Lentor Gardens site in April last year, which was $985 psf ppr. Research head at Knight Frank Singapore, Leonard Tay, states that the latest government land tenders in the Lentor vicinity represent some of the lowest land rates when compared to GLS sites awarded from 2021 in the Lentor area.
Deputy chief executive officer of OrangeTee & Tie, Justin Quek, suggests some developers may be more cautious when bidding due to macroeconomic uncertainties and cooling measures, and as more land is expected to be released next year.
Orchard Boulevard MRT Condo is located close to the Orchard MRT station, which makes public transport very convenient. The station is served by the North-South Line and the Downtown Line, allowing for easy access to other parts of the city. In addition, a host of amenities can be easily accessed. These include local eateries, supermarkets, and shopping malls, which provide convenience to daily needs.
Singapore’s Ang Mo Kio Planning Area is close to the Lentor Central site; with Lentor MRT station, schools such as CHIJ St. Nicholas Girls’ School, Anderson Primary School, and Presbyterian High School in the vicinity. Knight Frank Singapore’s Tay projects that the residential units of this project could go for above $2,000 psf, in line with the $2,080 psf unit price structure for the Lentor Hills Residences which launched in July.
Six GLS sites in Lentor have been tendered to date, with one more on the Reserve List. If awarded, the sites will add some 3,500 new homes to the area.
With the increasing tentative and defensive sentiment among developers, as well as the possibility of too many condominium projects being developed within a few years, developers may be holding back when bidding. This, in addition to a dilution in demand and more land parcels to be released due to the second half 2023 GLS programme; investors in the area could be in for some bargains in the months to come.