Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Eugene Lim, key executive officer at ERA Singapore, notes that there has actually been “a dilution in interest” for Lentor Central due to the high number of sites to be released under the second half 2023 GLS program.
ERA Singapore’s Lim statements that the Lentor Central site drops inside the Ang Mo Kio Planning Area and also close to Lentor MRT station and even established colleges, for example, CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian Secondary School.
“Both proposals for the Lentor Central plot show the significantly undecided and also defensive belief among developers, as well as the reality that the Lentor location might have a lot of condominium projects, all being built within a couple of years of each other,” claims Tay.
The tender for the residential government land sale (GLS) site at Lentor Central closed on Sept 12, together with the tender for the location at Champions Way.
Knight Frank Singapore’s Tay says that the likely market price for the residential units of this property can commence from over $2,000 psf, comparable to the $2,080 psf unit price of Lentor Hills Residences which released in July.
” We are thrilled to achieve the greatest quote at Lentor Central which marks our 4th site in the Lentor Hills Estate area,” claimed a spokesperson of Hong Leong Holdings. “If awarded, we plan to develop a nonpublic residential development with about 475 units in two skyscraper blocks, where citizens will benefit from the benefit of neighboring amenities and even Lentor MRT terminal, adding to the place’s overall appeal to possible purchasers.”
” They might additionally be holding back as even more land might be released next year,” Quek adds. “The authorities has actually publicized much more new land parcels to be introduced or outdated buildings/sites register for redevelopment.”
The leading bid is somewhat less than the $985 psf ppr paid by a joint business venture in between GuocoLand along with Hong Leong Holdings for the Lentor Gardens site in April 2022, explains Leonard Tay, head of research at Knight Frank Singapore. “The most recent government land tenders in the Lentor surroundings stand for among the most affordable land prices when matched up to the previous four GLS sites granted from 2021 in the Lentor area,” he includes.
In addition, many developers might be extra cautious as there certainly are macroeconomic worries, elevated rate of interest, as well as cooling procedures, claims Justin Quek, deputy ceo of OrangeTee & Tie.
The Lentor Central site drew just 2 proposals, with the top bid of $435.1 million submitted by a consortium comprising Hong Leong Holdings, GuocoLand as well as CSC Land Group. This figures out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft site. The bid was 5.9% more than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
Six GLS areas in Lentor have been tendered to date, with one more site right now on the Reserve Listing. Together, the sites could add some 3,500 new residences to the place.