Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
The Lentor Central area drew merely 2 quotes, with the leading bid of $435.1 million provided by a consortium making up Hong Leong Holdings, GuocoLand and CSC Land Group. This calculates to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft location. The bid was 5.9% more than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
” They may likewise be restraining as even more land might be launched upcoming year,” Quek adds. “The government has indeed actually declared much more new property plots to be introduced or old buildings/sites slated for redevelopment.”
Additionally, some property developers might be extra careful as there certainly are macroeconomic uncertainties, raised rate of interest, as well as moderating steps, says Justin Quek, deputy ceo of OrangeTee & Tie.
ERA Singapore’s Lim comments that the Lentor Central site falls within the Ang Mo Kio Planning Area as well as close to Lentor MRT station and founded schools, such as CHIJ St. Nicholas Girls’ School, Anderson Primary School and even Presbyterian Secondary School.
Six GLS sites in Lentor have been tendered to date, with another site currently on the Reserve List. Together, the areas could add some 3,500 new houses to the location.
Eugene Lim, major executive officer at ERA Singapore, mentions that there has been “a dilution in interest” for Lentor Central because of the sheer quantity of areas to be released under the second half 2023 GLS programme.
Knight Frank Singapore’s Tay explains that the likely asking price for the non commercial units of this project could begin from above $2,000 psf, similar to the $2,080 psf unit cost of Lentor Hills Residences which released in July.
” We are pleased to accomplish the highest possible quote at Lentor Central which marks our fourth spot in the Lentor Hills Estate place,” stated a representative of Hong Leong Holdings. “If granted, we intend to develop an exclusive residential property with around 475 units in 2 skyscraper blocks, where citizens will benefit from the convenience of close-by services and Lentor MRT terminal, adding to the site’s overall appeal to potential buyers.”
The tender for the residential government land sale (GLS) site at Lentor Central closed on Sept 12, alongside the tender for the site at Champions Way.
“The two bids for the Lentor Central plot mirror the increasingly unconfirmed and defensive sentiment amongst developers, as well as the fact that the Lentor location might have a lot of condo projects, almost all being developed in just a couple of years of each other,” claims Tay.
The leading bid is somewhat less than the $985 psf ppr paid by a joint venture between GuocoLand together with Hong Leong Holdings for the Lentor Gardens area in April last year, mentions Leonard Tay, head of research at Knight Frank Singapore. “The current government land tenders in the Lentor vicinity represent among the lowest land prices when matched up to the previous four GLS locations awarded from 2021 in the Lentor area,” he adds.