Tender for residential government land sale (GLS) site at Lentor Gardens closed today with a single bid from GuocoLand and Intrepid Investments. The joint venture partners submitted a bid of $486.8 million, which translates to a land rate of $985 psf per plot ratio (psf ppr). This is the lowest bid for the Lentor precinct to date.
The last two GLS sites to be sold in Lentor were at Lentor Central and Lentor Hill (Parcel B). Lentor Central was awarded to a consortium led by China Communications Construction, Soilbuild Group Holdings and United Engineers at a winning bid of $481.03 million ($1,108 psf ppr). TID, a joint venture between Hong Leong Group and Mitsui Fudosan, was the successful bidder for the Lentor Hill (Parcel B) at $276.36 million ($1,130 psf ppr).
Meanwhile, in January 2022, a GLS site at Lentor Hills Road (Parcel A) was sold to GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan), at a rate of $586.6 million ($1,060 psf ppr). This will yield 598 units and is expected to be launched soon.
GuocoLand also launched the 605-unit Lentor Modern integrated development last September and has sold 84% of the units at an average price of $2,104 psf.
Mark Yip, CEO of Huttons Asia, commented that bids for GLS sites in Lentor have been on the decline since the first GLS site in the area was launched. This could be due to the uncertain economic outlook and the potential of Additional Buyer’s Stamp Duty (ABSD) if developers are unable to sell all units within five years.
Two other GLS sites at Lentor are available under the 1H2023 GLS Programme. This includes a site at Lentor Central that can yield 475 units, expected to be launched for tender this month, as well as a 500-unit residential site at Lentor Gardens which is on the Reserved List.
Leonard Tay, head of research at Knight Frank Singapore, believes that the seven residential sites in Lentor – the five that have already been sold and the two still available for sale – will bring about some 3,500 new units to the area. This could potentially translate to almost 11,000 new residents in the area which is less than 0.5 sq km.
Potential homebuyers would be attracted to the area for its connectivity to public transport and its recreational facilities, such as Thomson Nature Park, Yio Chu Kang Stadium and Sports Complex and CHIJ St Nicholas Girls’ School.
Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch of the site could result in units priced around $1,950 to $2,050 psf.
The successful bid for the Lentor Gardens site is a testament to the potential for residential development in the growing Lentor precinct. With the number of sites available, it is sure to remain an attractive location for the foreseeable future.