Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Eugene Lim, major director at ERA Singapore, indicates that there has been “a dilution in interest” for Lentor Central as a result of the large quantity of spots to be released under the second half 2023 GLS programme.
Knight Frank Singapore’s Tay mentions that the likely market price for the residential units of this project could begin from over $2,000 psf, identical to the $2,080 psf unit rate of Lentor Hills Residences that launched in July.
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, alongside the tender for the location at Champions Way.
The Lentor Central area drew just 2 bids, with the leading proposal of $435.1 million submitted by a consortium consisting of Hong Leong Holdings, GuocoLand and also CSC Land Group. This calculates 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) provided by Frasers Property.
ERA Singapore’s Lim remarks that the Lentor Central site falls inside the Ang Mo Kio Planning Area and near to Lentor MRT terminal and existing institutions, for example, CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian High School.
“The two proposals for the Lentor Central plot show the considerably unconfirmed and also protective belief amongst developers, in addition to the reality that the Lentor area might have way too many condominium plans, all of being established in just a few years of each other,” states Tay.
In addition, some developers may be a lot more mindful as there certainly are macroeconomic uncertainties, elevated interest rates, and cooling measures, claims Justin Quek, deputy chief executive officer of OrangeTee & Tie.
” We are pleased to accomplish the highest possible proposal at Lentor Central which views our fourth location in the Lentor Hills Estate area,” stated a spokesperson of Hong Leong Holdings. “If awarded, we intend to construct a nonpublic residential property with around 475 units in two skyscraper blocks, where residents will take advantage of the benefit of close-by services along with Lentor MRT terminal, contributing to the site’s total look to possible buyers.”
The leading quote is marginally less 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, explains Leonard Tay, head of research at Knight Frank Singapore. “The most recent government land tenders in the Lentor vicinity represent among the most affordable land fees when matched up to the previous four GLS spots granted from 2021 in the Lentor location,” he includes.
” They may additionally be restraining as even more land could be released next year,” Quek includes. “The state has actually declared a lot more new ground plots to be introduced or outdated buildings/sites register for redevelopment.”
6 GLS sites in Lentor have been tendered to date, with one more site presently on the Reserve Checklist. Together, the locations might add some 3,500 new houses to the area.