The tender for a residential government land sale (GLS) site at Lentor Gardens closed today with just one bid from GuocoLand and Intrepid Investments, a subsidiary of Hong Leong Group. The two joint venture partners submitted a bid of $486.8 million, translating to a land rate of $985 psf per plot ratio (psf ppr).
Guoco Land has envisioned a new high-end residential development with around 533 units, and 600 sqm of childcare facilities for the site. The future development is intended to complement other two upcoming developments – Lentor Modern and Lentor Hills Residences – as part of plans to transform the Lentor Hills estate to be widely known as a premium residential area.
Mark Yip, CEO of Huttons Asia, observes that the $958 psf ppr bid is the lowest for a land parcel in the Lentor precinct. It is also the first residential GLS tender to see only one bid since the tender of the Silat Avenue GLS site in 2018.
Since the launch of the first GLS site at Lentor, bids have been on a downward trend. This could be attributed to the risk of being slapped with Additional Buyer’s Stamp Duty if developers are unable to sell all the units within five years.
Two other GLS sites at Lentor are available for sale under the 1H2023 GLS Programme – a 475-unit site at Lentor Central and a 500-unit site at Lentor Gardens. Leonar Tay, head of research at Knight Frank Singapore, estimates that all seven residential sites in Lentor – the five that have now been sold and the two still available for sale – could potentially bring about some 3,500 new units, translating to almost 11,000 new residents.
The upcoming Lentor Hills estate, where GuocoLand has emerged as a dominant player, has a prime location within walking distance of Lentor MRT station, Thomson Nature Park, and Yio Chu Kang Stadium and Sports Complex. It is also within 1km of CHIJ St Nicholas Girls’ School.
It is anticipated that the eventual launch of the Lentor Gardens site could see units priced around $1,950 to $2,050 psf. GuocoLand’s launch of the 605-unit Lentor Modern integrated development last September saw 84% of the units sold on launch weekend and is now 88% sold at an average price of $2,104 psf.
The success of new developments in the Lentor area should continue to be strong, given its convenient access to public transport and recreational facilities.