Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
ERA Singapore’s Lim comments that the Lentor Central site falls within the Ang Mo Kio Planning Area as well as in close proximity to Lentor MRT terminal and existing institutions, such as CHIJ St. Nicholas Girls’ School, Anderson Primary School and even Presbyterian High School.
“The two bids for the Lentor Central plot show the considerably tentative and also protective belief amongst developers, as well as the truth that the Lentor location might have way too many condo projects, all being developed within a couple of years of one another,” says Tay.
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, along with the tender for the site at Champions Way.
” We are pleased to attain the highest possible proposal at Lentor Central which notes our fourth spot in the Lentor Hills Estate location,” said a spokesperson of Hong Leong Holdings. “If awarded, we intend to develop an exclusive residential development with approximately 475 units in two high-rise blocks, where residents will benefit from the comfort of close-by facilities and Lentor MRT station, contributing to the place’s total appeal to possible customers.”
” They might also be holding off as more land might be launched upcoming year,” Quek adds. “The government has actually publicized a lot more new property plots to be introduced or old buildings/sites register for redevelopment.”
Knight Frank Singapore’s Tay mentions that the probably selling price for the non commercial units of this property could begin from above $2,000 psf, similar to the $2,080 psf unit price of Lentor Hills Residences which introduced in July.
In addition, some property developers might be extra mindful as there are macroeconomic uncertainties, increased rate of interest, and moderating procedures, says Justin Quek, deputy ceo of OrangeTee & Tie.
The Lentor Central site drew only two quotes, with the leading proposal of $435.1 million submitted by a consortium comprising Hong Leong Holdings, GuocoLand and CSC Land Group. This works out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft site. The proposal was 5.9% more than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
Eugene Lim, key executive officer at ERA Singapore, indicates that there has actually been “a dilution in need” for Lentor Central due to the large quantity of areas to be launched under the 2nd half 2023 GLS program.
The top bid is partially less than the $985 psf ppr paid by a joint business venture between GuocoLand along with Hong Leong Holdings for the Lentor Gardens site in April 2022, explains Leonard Tay, head of research at Knight Frank Singapore. “The latest government land tenders in the Lentor surroundings represent amongst the lowest land prices when looked at to the previous 4 GLS locations awarded from 2021 in the Lentor area,” he includes.
6 GLS locations in Lentor have actually been tendered to date, with one more spot currently on the Reserve Listing. Together, the sites might add some 3,500 new residences to the place.
