GLS plot at Lentor Hill fetches $1,130 psf pprGuocoLand emerges victorious for GLS plot at Lentor Gardens at $985 psf ppr
Today, the tender for the residential government land sale (GLS) site at Lentor Gardens closed with only one bid, $486.8 million, from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group). The amount translates to a land rate of $985 psf per plot ratio (psf ppr).
The joint venture partners are envisioning the development of a new, high-end residential area with around 533 units that will include 600 sqm of childcare facilities. This new development complements the two projects – Lentor Modern and Lentor Hills Residences – of the transforming Lentor Hills estate.
Mark Yip, CEO of Huttons Asia, remarks that this $958 psf ppr bid is the lowest for a land parcel in the Lentor precinct. There was also only one bid since the tender of the Silat Avenue GLS site in 2018, won by a consortium led by UOL Group for $1.035 billion.
Two other residential GLS sites have been sold in Lentor: Lentor Central, won by a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers for $481.03 million ($1,108 psf ppr), and Lentor Hills (Parcel B) to TID (a joint venture between Hong Leong Group and Mitsui Fudosan) for $276.36 million ($1,130 psf ppr). Both parcels can yield about 470 and 265 units respectively.
More recently, a GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr). The resulting 598-unit project called Lentor Hills Residences is jointly developed by GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan).
Last September, GuocoLand launched the 605-unit Lentor Modern integrated development. The development was an instant success, with 84% of the units sold on launch weekend, and is now 88% sold at an average price of $2,104 psf. The developer purchased the GLS site for $784.1 million ($1,204 psf ppr) in July 2021.
Huttons’ Yip cites the cloudy economic outlook, along with the risk of being slapped with Additional Buyer’s Stamp Duty for developers if all units are not sold within five years, as reasons behind the continuous downward trend of bids since the launch of the first GLS site at Lentor.
Two other GLS sites at Lentor are available for sale under the 1H2023 GLS Programme – an expected 475-unit site at Lentor Central launching this month, and a 500-unit residential site at Lentor Gardens, which is on the Reserved List.
Knight Frank Singapore’s Head of Research, Leonard Tay, adds that these seven sites – the five that have now been sold and the two still available for sale – could bring about some 3,500 new units to the area and 11,000 new residents.
The site that closed today is within walking distance of the Lentor MRT station and a number of recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex. It is also about 1km from CHIJ St Nicholas Girls’ School, which should appeal to parents of school-going children.
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.
The Lentor Hills estate is set to become a premium destination in the months to come, with GuocoLand leading the charge for the area’s growth and development.