Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Located near the eastern end of Singapore, Tampines Ave 11 Condo provides a great living experience for its residents. With major shopping malls, supermarkets and other amenities right at its doorstep, daily needs can easily be met. Public transport is also easily accessible, with multiple MRT stations located nearby. Furthermore, its excellent location allows for hassle-free connections to the rest of Singapore.
The tender for the residential government land sale (GLS) site at Champions Way closed on Sept 12, alongside the Lentor Central site. The bids for Champions Way were more varied, with the top bid of $904 psf ppr submitted by City Developments Limited.
Meanwhile, the tender at Lentor Central attracted just two bids, with the highest of $435.1 million submitted by a consortium comprising Hong Leong Holdings, GuocoLand, and CSC Land Group. This works out to $982 psf per plot ratio (psf ppr) for the 158,264 sq ft, 99-year leasehold land. The bid was 5.9% higher than the second place bid of $410.8 million ($927 psf ppr) by Frasers Property.
A spokesman from Hong Leong Holdings was pleased with the outcome. “We plan to build a private residential development with about 475 units in two high-rise blocks,” he said. “It adds a lot of appeal to the site when residents can benefit from the convenience of nearby amenities and Lentor MRT station.”
Leonard Tay from Knight Frank Singapore points out that the highest bid is lower than the $985 psf ppr the same consortium paid for the Lentor Gardens site in April last year. He attributes this to the sheer number of sites to be released under the second half 2023 GLS programme.
Eugene Lim from ERA Singapore adds that developers may also be reticent to pay more in light of macroeconomic uncertainties, rising interest rates, and cooling measures. Furthermore, there may be further land releases next year.
Justin Quek, deputy chief executive officer of OrangeTee & Tie, highlights the site’s proximity to Ang Mo Kio Planning Area, Lentor MRT station, and various established schools, such as CHIJ St. Nicholas Girls’ School, Anderson Primary School, and Presbyterian High School.
According to Knight Frank Singapore’s Tay, the likely selling price for the residential units of this project could start from above $2,000 psf, similar to the $2,080 psf unit price of Lentor Hills Residences which launched in July.
Overall, it appears sentiment for the Lentor Central land parcel is guarded due to the near-term floods of potential supply in the area. Six GLS sites have been tendered in the Lentor area so far, with the potential of 3,500 new homes. One more site is currently on the Reserve List.