GuocoLand sole bidder for Lentor Gardens GLS site at $985 psf ppr
A single bid of $486.8 million was submitted for the residential government land sale (GLS) site at Lentor Gardens, which closed today. The joint venture between GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group) translated to a land rate of $985 psf per plot ratio (psf ppr).
The two companies are envisioning a high-end residential development consisting of around 533 units and 600 sqm of childcare facilities. This is part of their plans to transform the Lentor Hills estate into a premium residential area including the 605-unit Lentor Modern integrated development, the 598-unit Lentor Hills Residences by GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan).
Mark Yip, CEO of Huttons Asia, commented that the bid of $958 psf ppr for the Lentor Gardens site is the lowest for a land parcel in the Lentor precinct, and also the first residential GLS tender to have seen only one bid since the tender of the Silat Avenue GLS site in 2018.
The Lentor area has seen the sale of multiple GLS sites. Lentor Central was awarded to a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers, who submitted a bid of $481.03 million ($1,108 psf ppr). Additionally, TID (a joint venture between Hong Leong Group and Mitsui Fudosan) was the top bidder for Lentor Hills (Parcel B) at $276.36 million ($1,130 psf ppr).
A GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022 and the future launch of the Lentor Hills Residences is expected.
Leonard Tay, head of research at Knight Frank Singapore, noted that the potential residential units from all seven sites in Lentor could bring about some 3,500 new units, along with 11,000 new residents in the area. He further highlighted that the Lentor Gardens site, located in close proximity to the Lentor MRT station, Thomson Nature Park and Yio Chu Kang Stadium, should appeal to potential homebuyers.
Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch at the site could see units priced around $1,950 to $2,050 psf.
The 99-year leasehold Lentor Gardens GLS site can potentially yield about 530 residential units. Its bid of $958 psf ppr is the lowest for a land parcel in the Lentor precinct and it is the first residential GLS tender to have seen just one offer since the tender of the Silat Avenue GLS site in 2018.
GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group) submitted the bid of $486.8 million, which translates to a land rate of $985 psf per plot ratio (psf ppr). The two companies are expecting to develop a new high-end residential development with around 533 units and 600 sqm of childcare facilities.
The site is within walking distance of the Lentor MRT station and close to CHIJ St Nicholas Girls’ School, Thomson Nature Park and Yio Chu Kang Stadium, which could attract homebuyers from all walks of life.
Mark Yip, CEO of Huttons Asia, explains that bids have been on a downward trend due to the cloudy economic outlook, along with the risk of being slapped with Additional Buyer’s Stamp Duty if all units cannot be sold within five years.
The two other GLS sites at Lentor are available on the 1H2023 GLS Programme. An upcoming 475-unit site at Lentor Central is expected to be launched later this month and a 500-unit residential site at Lentor Gardens is listed on the Reserved List.