Land-starved developers take a punt on Tengah’s industrial land GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group) submitted the sole bid for a residential government land sale (GLS) site at Lentor Gardens, with a bid of $486.8 million, translating to a land rate of $985 psf per plot ratio (psf ppr).

The future development, to be a new high-end residential development of around 533 units, will complement the two upcoming developments – Lentor Modern and Lentor Hills Residences, which aim to transform the Lentor Hills estate to a premium residential area.

Mark Yip, CEO of Huttons Asia, notes that the $958 psf ppr bid is the lowest for a land parcel in the Lentor precinct, and is the first residential GLS tender to see only one bid since the tender of the Silat Avenue GLS site in 2018.

The two last residential GLS sites to be sold in Lentor were Lentor Central and Lentor Hill (Parcel B), both of which were awarded last September. 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). Meanwhile, 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. It was purchased by a joint venture between GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan), and is expected to launch the 598-unit Lentor Hills Residences soon.

GuocoLand’s launch of the 605-unit Lentor Modern integrated development last September saw 84% of the units sold on launch weekend, with 88% of the units sold at an average price of $2,104 psf.

Huttons’ Yip comments that, with the launch of the first GLS site at Lentor, bids have been on a downward trend, likely due to developers being mindful of an area where the government has been pushing out land for sale regularly. The cloudy economic outlook and the risk of Additional Buyer’s Stamp Duty may have further deterred developers.

Two other GLS sites at Lentor are available for sale under the 1H2023 GLS Programme. The site at Lentor Central, which can yield 475 units, is expected to be launched for tender this month, while a 500-unit residential site at Lentor Gardens is on the Reserved List.

Leonard Tay, head of research at Knight Frank Singapore, notes that all seven residential sites in Lentor – the five that have now been sold and the two still available for sale – could potentially bring about some 3,500 new units to the area, with a potential of 11,000 new residents.

The upcoming Lentor estate is about 1km from CHIJ St Nicholas Girls’ School, and is also within walking distance of the Lentor MRT station and recreational facilities, such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex.

Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch at Lentor Gardens could see units priced around $1,950 to $2,050 psf.

With seven residential sites in the Lentor area available for sale, there is potential for the area to become a premium residential area, with increased connectivity and recreational facilities, appealing to potential homebuyers of all ages.

GuocoLand and Intrepid Investments have submitted the lone bid for a 99-year leasehold residential Government Land Sales (GLS) site at Lentor Gardens for $486.8 million, after the tender closed today. This translates to a land rate of $985 psf per plot ratio (psf ppr).

The partnership intends to develop a high-end residential development with around 533 units, and with 600 sqm of childcare facilities, as part of the plans to transform the Lentor Hills estate.

Mark Yip, CEO of Huttons Asia, states that the land rate of $958 psf ppr is the lowest for the Lentor precinct. It is also the first residential GLS tender to draw only one bid since the tender of the Silat Avenue GLS site in 2018, which was purchased by a consortium led by UOL.

The last two residential GLS sites to be sold in Lentor were Lentor Central and Lentor Hill (Parcel B) in September 2021. The consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers submitted a bid of $481.03 million ($1,108 psf ppr) for the former, while TID (a joint venture between Hong Leong Group and Mitsui Fudosan) was the top bidder for the latter at $276.36 million ($1,130 psf ppr).

The land parcel at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022. GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan) are expected to launch the 598-unit Lentor Hills Residences soon.

GuocoLand’s launch of the 605-unit Lentor Modern integrated development last September saw 84% of the units sold on launch weekend, with 88% sold at an average price of $2,104 psf.

Huttons’ Yip points out that since the launch of the first GLS site at Lentor, bids have been decreasing, likely due to the regular land sale pushes from the government, the uncertain economy, and the risk of Additional Buyer’s Stamp Duty if all units cannot be sold within five years.

Two other GLS sites at Lentor are included in the 1H2023 GLS Programme. Regarding the forthcoming 500-unit residential site at Lentor Gardens, Steven Tan, CEO of OrangeTee & Tie, states that the eventual launch could see units priced around $1,950 to $2,050 psf.

Leonard Tay, head of research at Knight Frank Singapore, notes the potential of the seven residential sites in Lentor, which could bring about some 3,500 new units and 11,000 new residents to the area. This is seen as an attractive option by potential buyers due to its proximity to the Lentor MRT station, CHIJ St Nicholas Girls’ School, recreational facilities, and more.