Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
ERA Singapore’s Lim comments that the Lentor Central site falls inside the Ang Mo Kio Planning Area and also in close proximity to Lentor MRT station and even founded colleges, including CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian Secondary School.
Knight Frank Singapore’s Tay says that the most likely market price for the residential units of this project can begin from above $2,000 psf, similar to the $2,080 psf unit rate of Lentor Hills Residences which launched in July.
” We are glad to achieve the greatest proposal at Lentor Central which notes our 4th site in the Lentor Hills Estate location,” said a spokesperson of Hong Leong Holdings. “If granted, we plan to build a private non commercial development with about 475 units in 2 high-rise blocks, where locals are going to benefit from the convenience of nearby facilities along with Lentor MRT terminal, adding to the site’s overall look to possible buyers.”
“Both offers for the Lentor Central plot reflect the considerably tentative and protective sentiment amongst developers, as well as the reality that the Lentor location might have way too many condo projects, almost all being built within a couple of years of one another,” states Tay.
The tender for the residential government land sale (GLS) site at Lentor Central closed on Sept 12, alongside the tender for the area at Champions Way.
” They may additionally be holding back as more land can be launched upcoming year,” Quek includes. “The government has already announced extra new ground plots to be released or older buildings/sites register for redevelopment.”
The leading quote is partially less than the $985 psf ppr paid by a joint business venture in between GuocoLand together with Hong Leong Holdings for the Lentor Gardens site in April last year, points out Leonard Tay, head of research at Knight Frank Singapore. “The most recent government land tenders in the Lentor surroundings represent amongst the most affordable land rates when matched up to the previous four GLS locations granted from 2021 in the Lentor region,” he includes.
Eugene Lim, key director at ERA Singapore, indicates that there has been “a dilution in interest” for Lentor Central due to the high quantity of sites to be released under the 2nd half 2023 GLS programme.
The Lentor Central area attracted just 2 proposals, with the top quote of $435.1 million provided by a consortium comprising Hong Leong Holdings, GuocoLand and CSC Land Group. This figures out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft location. The proposal was 5.9% greater than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
Furthermore, many developers may be more cautious as there certainly are macroeconomic unpredictabilities, raised rate of interest, as well as cooling measures, claims Justin Quek, deputy president of OrangeTee & Tie.
6 GLS sites in Lentor have been tendered to date, with another location currently on the Reserve List. Together, the locations could add some 3,500 new residences to the place.