Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Knight Frank Singapore’s Tay says that the likely selling price for the residential units of this project can commence from over $2,000 psf, similar to the $2,080 psf unit cost of Lentor Hills Residences which released in July.
” They might also be holding back as more land can be launched next year,” Quek includes. “The government has indeed actually declared extra new ground plots to be released or older buildings/sites register for redevelopment.”
ERA Singapore’s Lim remarks that the Lentor Central site falls inside the Ang Mo Kio Planning Area and also in close proximity to Lentor MRT terminal and even existing institutions, including CHIJ St. Nicholas Girls’ School, Anderson Primary School and even Presbyterian Secondary School.
The leading proposal 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 2022, explains Leonard Tay, head of research study at Knight Frank Singapore. “The most recent government land tenders in the Lentor vicinity represent among the most affordable land prices when compared to the previous 4 GLS spots granted from 2021 in the Lentor area,” he includes.
Eugene Lim, primary director at ERA Singapore, notes that there has been “a dilution in demand” for Lentor Central due to the large amount of areas to be launched under the second half 2023 GLS programme.
Additionally, several developers might be a lot more careful as there are macroeconomic uncertainties, increased interest rates, and also cooling procedures, says Justin Quek, deputy ceo of OrangeTee & Tie.
The tender for the residential government land sale (GLS) site at Lentor Central closed on Sept 12, together with the tender for the location at Champions Way.
The Lentor Central area drew only two quotes, with the top proposal of $435.1 million provided by a consortium consisting of 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 area. The bid was 5.9% more than the $410.8 million ($ 927 psf ppr) submitted by Frasers Property.
” We are pleased to attain the highest possible proposal at Lentor Central which marks our fourth location in the Lentor Hills Estate area,” said a representative of Hong Leong Holdings. “If awarded, we plan to construct a nonpublic non commercial development with around 475 units in 2 skyscraper blocks, where citizens are going to benefit from the comfort of close-by amenities along with Lentor MRT station, adding to the spot’s overall appeal to possible buyers.”
“Both bids for the Lentor Central plot mirror the considerably tentative and protective view amongst developers, along with the reality that the Lentor area may have a lot of condominium projects, all being developed in just a couple of years of each other,” states Tay.
6 GLS areas in Lentor have actually been tendered to date, with another location right now on the Reserve Checklist. Collectively, the sites might add some 3,500 new residences to the place.