Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Eugene Lim, primary director at ERA Singapore, notes that there has been “a dilution in demand” for Lentor Central because of the high number of sites to be released under the second half 2023 GLS programme.
The leading proposal is marginally lower than the $985 psf ppr paid by a joint project between GuocoLand together with Hong Leong Holdings for the Lentor Gardens area in April 2022, points out Leonard Tay, head of research study at Knight Frank Singapore. “The most up to date government land tenders in the Lentor vicinity represent among the lowest land fees when compared to the previous 4 GLS sites awarded from 2021 in the Lentor region,” he includes.
Six GLS areas in Lentor have been tendered to date, with another site presently on the Reserve Listing. Together, the areas can add some 3,500 brand-new residences to the area.
The Lentor Central site drew merely two bids, with the leading bid of $435.1 million provided by a consortium consisting of Hong Leong Holdings, GuocoLand and also CSC Land Group. This works out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft site. The quote was 5.9% more than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
“Both bids for the Lentor Central plot mirror the significantly undecided and defensive view among developers, in addition to the truth that the Lentor location could have too many condominium projects, all being developed in just a few years of one another,” says Tay.
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, along with the tender for the location at Champions Way.
” We are pleased to attain the highest quote at Lentor Central which marks our 4th site in the Lentor Hills Estate place,” claimed a spokesperson of Hong Leong Holdings. “If granted, we intend to build an exclusive residential development with around 475 units in two high-rise blocks, where residents are going to take advantage of the convenience of close-by facilities and even Lentor MRT station, adding to the place’s general demand to possible purchasers.”
In addition, many developers might be a lot more mindful as there certainly are macroeconomic uncertainties, raised rates of interest, as well as cooling steps, says Justin Quek, deputy chief executive officer of OrangeTee & Tie.
ERA Singapore’s Lim remarks that the Lentor Central site drops throughout the Ang Mo Kio Planning Area as well as near to Lentor MRT station plus founded colleges, including CHIJ St. Nicholas Girls’ School, Anderson Primary School and even Presbyterian High School.
Knight Frank Singapore’s Tay says that the likely market price for the residential units of this property could commence from above $2,000 psf, similar to the $2,080 psf unit price of Lentor Hills Residences that introduced in July.
” They may likewise be restraining as more land might be launched next year,” Quek adds. “The state has already declared much more new ground plots to be released or outdated buildings/sites slated for redevelopment.”