GuocoLand sole bidder for Lentor Gardens GLS site at $985 psf ppr
GuocoLand and Intrepid Investment (a subsidiary of Hong Leong Group) have emerged as the sole bidder for the 99-year leasehold government land sale (GLS) site at Lentor Gardens, submitting a bid of $486.8 million which translates to a land rate of $985 psf per plot ratio (psf ppr). In doing so, they have set a new low for land parcels in the Lentor precinct.
The joint venture partners have revealed that their planned development for the site will be a new high-end residential project featuring around 533 units and 600 sqm of childcare facilities. They intend for the project to complement their two other upcoming developments in the Lentor Hills estate and add to the area’s reputation as a premium residential area.
Mark Yip, CEO of Huttons Asia, notes that this is the first GLS tender to see only one bid since the Silat Avenue GLS site in 2018, which was won by a consortium headed by UOL Group for $1.035 billion. This site was later launched as the 1,074-unit Avenue South Residences in September 2019 and has since been fully sold.
The last two GLS sites in the Lentor district to be sold were at Lentor Central and Lentor Hill (Parcel B), both of which were awarded to bidders last September. Lentor Central’s highest bid was from a consortium of China Communications Construction, Soilbuild Group Holdings, and United Engineers at $481.03 million ($1,108 psf ppr), while TID (a joint venture between Hong Leong Group and Mitsui Fudosan) outbid all others at $276.36 million ($1,130 psf ppr) for the Lentor Hill (Parcel B) site.
In January 2022, a GLS site at Lentor Hills Road (Parcel A) was won for $586.6 million ($1,060 psf ppr). The 598-unit Lentor Hills Residences, a project developed by the tripartite joint venture of GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan), is expected to be launched soon.
Not to be outdone, GuocoLand’s launch of the 605-unit Lentor Modern integrated development last September saw 84% of the units sold during the launch weekend. According to the caveat lodged, the project is currently 88% sold at an average price of $2,104 psf. They purchased the GLS site for $784.1 million ($1,204 psf ppr) in July 2021.
Yip believes that the downward trend in bids may be due to the uncertain economic climate, along with the risk of incurring Additional Buyer’s Stamp Duty incurred if all units in a development are unable to be sold within five years.
Two GLS sites in the Lentor area are still available for sale under the 1H2023 GLS Programme: a 475-unit site at Lentor Central and a 500-unit residential site at Lentor Gardens. Leonard Tay, head of research at Knight Frank Singapore, estimates that the sale of all seven residential sites in the district – five of which have since been sold – could increase the population of the area by some 11,000 in three to six years.
The Lentor Gardens site is within walking distance of Lentor MRT station and is also close to public transport and recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex. It is also a kilometer away from CHIJ St Nicholas Girls’ School, which should appeal to parents of school-going children.
Steven Tan, CEO of OrangeTee & Tie, suggests that the eventual launch of the site may see its units priced at around $1,950 to $2,050 psf.
Potential buyers should consider the project’s connectivity to public transport, recreational facilities, and schools, in addition to its proximity to the other residential developments in the Lentor Hills estate. With GuocoLand emerging as a dominant player in the site, the Lentor district’s transformation into a premium residential area looks to be progressing well.