Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Six GLS locations in Lentor have actually been tendered to date, with one more site currently on the Reserve Checklist. Collectively, the areas could include some 3,500 brand-new residences to the area.
The Lentor Central site attracted just two bids, with the leading proposal of $435.1 million provided by a consortium comprising Hong Leong Holdings, GuocoLand as well as CSC Land Group. This works out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft area. The bid was 5.9% greater than the $410.8 million ($ 927 psf ppr) submitted by Frasers Property.
“The two bids for the Lentor Central plot reflect the considerably undecided and protective belief among developers, as well as the reality that the Lentor location could have a lot of condominium projects, all being developed within a few years of each other,” says Tay.
Eugene Lim, key executive officer at ERA Singapore, mentions that there has actually been “a dilution in demand” for Lentor Central as a result of the sheer quantity of areas to be released under the 2nd half 2023 GLS program.
” They might additionally be holding off as more land can be released next year,” Quek adds in. “The authorities has already declared more new property parcels to be published or outdated buildings/sites slated for redevelopment.”
The leading quote is marginally less than the $985 psf ppr paid by a joint business venture between GuocoLand together with Hong Leong Holdings for the Lentor Gardens location in April last year, 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 most affordable land fees when matched up to the previous 4 GLS locations awarded from 2021 in the Lentor area,” he adds.
Knight Frank Singapore’s Tay explains that the likely market price for the non commercial units of this property can commence from above $2,000 psf, similar to the $2,080 psf unit rate of Lentor Hills Residences that introduced in July.
Additionally, many property developers might be a lot more careful as there certainly are macroeconomic unpredictabilities, elevated rates of interest, and moderating measures, says Justin Quek, deputy chief executive officer of OrangeTee & Tie.
ERA Singapore’s Lim remarks that the Lentor Central site drops within the Ang Mo Kio Planning Area and in close proximity to Lentor MRT station and founded schools, such as CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian High School.
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, along with the tender for the area at Champions Way.
” We are pleased to attain the highest possible bid at Lentor Central which views our fourth location in the Lentor Hills Estate place,” claimed a representative of Hong Leong Holdings. “If awarded, we intend to build a nonpublic non commercial property with approximately 475 units in 2 high-rise blocks, where citizens will benefit from the benefit of neighboring facilities and even Lentor MRT terminal, adding to the site’s overall demand to potential purchasers.”