GuocoLand’s Lentor Modern sold 84% of units on launch weekendLentor Gardens GLS site drew just one bid from GuocoLand and Intrepid Investments for a land rate of $985 psf pprThe tender for the residential government land sale (GLS) site at Lentor Gardens concluded today with just one bid from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group). The joint venture partners submitted a bid of $486.8 million, which translates to a land rate of $985 psf plot ratio (psf ppr).
GuocoLand spokesperson has stated that they are envisioning the development of a high-end residential development at this site with 533 units and 600 sqm of childcare facilities. The development is expected to add to the area of Lentor Hills transforming it into a known premium residential area.
The current bid of $958 psf ppr is the lowest for a Lentor land parcel as stated by Mark Yip, CEO of Huttons Asia. This is also the first residential GLS tender to see only one bidder since the tender of the Silat Avenue GLS in 2018, awarded to a UOL Group consortium for $1.035 billion.
Last year, two other GLS sites at Lentor were awarded. Lentor Central was sold to a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers for $481.03 million ($1,108 psf ppr). TID (a joint venture between Hong Leong Group and Mitsui Fudosan) won the tender for Lentor Hills (Parcel B) for $276.36 million ($1,130 psf ppr) and can yield about 265 units.
The GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022, which was purchased by a joint venture between GuocoLand, Hong Leong Holdings, and TID. The project, the 598-unit Lentor Hills Residences, is expected to be launched soon.
GuocoLand’s launch of the 605-unit Lentor Modern integrated development, which took place last September, saw 84% of the units being sold on launch weekend. Prices being lodged and recorded at an average of $2,104 psf, the project is now 88% sold.
Huttons’ Yip noted that bids for GLS over the Lentor area have been declining; which could be attributed to the cloudy economic outlook along with the risk of being slapped with Additional Buyer’s Stamp Duty if unable to sell all the units within five years.
Two other GLS sites at Lentor are on sale for the 1H2023 GLS Programme. A site at Lentor Central, expected to launch for tender this month, can yield 475 units and a 500-unit residential site at Lentor Gardens is on the Reserved List.
Leonard Tay, head of research at Knight Frank Singapore, estimates that the three already sold and the two still on sale sites potentially bring in 3,500 new units with 11,000 new residents. He pointed out the proximity of the site to the Lentor MRT station and recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex. It is also around 1 km away from CHIJ St Nicholas Girls’ School, making it attractive to parents with school-going children.
Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch at the site could see units priced around $1,950 to $2,050 psf.
It is interesting to note that with the emergence of GuocoLand has a dominant player in the Lentor Hills estate, could be an indicator of the potential for the development of this land parcel at Lentor Gardens. Opportunities like this to make an investment in such prime land, rarely come by and with the area being a bullseye on the investment map; the tender to purchase this project at the rate of $985 psf ppr, might turn out to be quite a lucky draw.…