The Lentor Central GLS site received two offers, with the highest bid being $982 psf ppr
A tender was opened for the government residential site (GLS) site at Lentor Central ended on the 12th of September along with the bid to purchase Champions Way. site on Champions Way.
It is worth noting that the Lentor Central site drew just two bids. The highest offer of $435.1 million offered by a consortium that includes Hong Leong Holdings, GuocoLand and CSC Land Group. The sum is $982 psf/plot proportion (psf or ppr) to leasehold the 99 year term and the area of 158,264 square feet site. The offer came in 5.9% higher than the $410.8 million ($927 per plot ratio psf) that was submitted to Frasers Property.
Watten House Bukit Timah can enjoy the region’s numerous eateries and retail options, as well as the beautiful walks and rich vegetation, to live a leisurely, stress-free lifestyle.
“We are thrilled to have achieved the highest bid for Lentor Central which marks our fourth site within the Lentor Hills Estate area,” spokeswoman for Hong Leong Holdings. “If the bid is accepted, we will plan to develop an exclusive residential development of around 475 units spread across two blocks of high-rises, where residents will enjoy the convenience of close amenities as well as the Lentor MRT station. This will add to the appeal of the area for potential buyers.”
The bid is marginally lower than the $985 per square foot that was paid through a joint venture with GuocoLand as well as Hong Leong Holdings for the Lentor Gardens site in April the previous year, says Leonard Tay, head of research at Knight Frank Singapore. “The current government land tenders in the Lentor region are one of the lowest rates for land in comparison to the earlier four GLS sites that were awarded in 2021 within the Lentor region,” he adds.
Eugene Lim, key executive officer Eugene Lim, chief executive officer of ERA Singapore, notes that there’s been “a decrease in the demands” in Lentor Central due to the huge amount of sites that are scheduled to be released under the second half of 2023 GLS program.
Additionally, certain developers might be more cautious because of economic uncertainties, high interest rates and cooling measures according to Justin Quek, deputy chief executive officer of OrangeTee & Tie.
“They could also be holding back, as additional land may be released in the coming this year.” Quek adds. “The government has announced new land parcels that will be released, or older buildings/sites scheduled to be redeveloped.”
ERA Singapore’s Lim notes in the report that Lentor Central site is in the Ang Mo Kio Planning Area and is in close proximity to the Lentor MRT station as well as established schools, including CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian High School.
The Knight Frank Singapore’s Tay believes that the probable sale price for the units that are residential in this development could begin from over $2,000 psf, comparable to the $2,080 per square foot unit cost for Lentor Hills Residences which was announced in July.
“The two bids to purchase the Lentor Central plot are a reflection of the growing defensive and hesitant attitude of developers in addition to the reality that the Lentor area could have numerous condominium developments which are being developed within a couple of years of one another,” says Tay.
Six GLS sites in Lentor have been offered to the present, with another site is currently being placed on the Reserve List. Together the sites could bring about 3500 new houses to the area.