Sold! Singapore residential land prices soar, setting new GLS records
The 99-year leasehold residential government land sale (GLS) site at Lentor Gardens closed today with only one bid from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group). The joint venture partners submitted a bid of $486.8 million, which translates to a land rate of $985 psf per plot ratio (psf ppr).
According to Mark Yip, CEO of Huttons Asia, the bid of $958 psf ppr is the lowest for a land parcel in the Lentor precinct and it is also the first residential GLS tender to receive only one bid since the tender of the Silat Avenue GLS site in 2018. The site was launched as the 1,074 unit Avenue South Residences in September 2019 and is now fully sold.
The last two residential GLS sites to be sold in Lentor were in Lentor Central and Lentor Hill (Parcel B), both of which were awarded last September. Lentor Central was awarded to a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers, who submitted a bid of $481.03 million ($1,108 psf ppr). Meanwhile, TID (a joint venture between Hong Leong Group and Mitsui Fudosan) was the top bidder for Lentor Hills (Parcel B) at $276.36 million ($1,130 psf ppr).
The two land parcels can yield about 470 and 265 units respectively. Prior to this, a GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022.
Leonard Tay, head of research at Knight Frank Singapore notes that all seven residential sites in Lentor- the five that have now been sold and the two still available for sale- could potentially bring about some 3,500 new units to the area. This would translate to almost 11,000 new residents.
“We are envisioning a new high-end residential development with around 533 units, and with 600 sqm of childcare facilities,” say a GuocoLand spokesperson of the Lentor Garden site. “The future development will complement our other two upcoming developments – Lentor Modern and Lentor Hills Residences – in our plans to transform the Lentor Hills estate to be widely known as a premium residential area.”
GuocoLand’s 605-unit Lentor Modern integrated development launched last September and saw 84% of the units sold on launch weekend. According to caveats lodged, the project is 88% sold at an average price of $2,104 psf.
There are a number of existing and upcoming sites around the Lentor area and GuocoLand’s launch of the 598-unit Lentor Hills Residences is expected to be launched soon.
Steven Tan, CEO of OrangeTee & Tie believes that the eventual launch of the 530-unit site at Lentor Gardens could see units priced around $1,950 to $2,050 psf. Potential homebuyers would be drawn to its connectivity to public transport and recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex and its proximity to CHIJ St Nicholas Girls’ School.
The site’s downside is that developers may have been deterred by the cloudy economic outlook, along with the risk of additional buyer’s stamp duty if they are unable to sell all units within five years.
Two other GLS sites at Lentor are available for sale under the 1H2023 GLS Programme: one at Lentor Central (475 units) and one at Lentor Gardens (500 units).
Check out the latest listings near Lentor Gardens, Lentor Central, Lentor Hills Residences, Lentor Modern, Lentor MRT station, CHIJ St Nicholas Girls’ School for more details.
GuocoLand’s emergence as a dominant player in the upcoming Lentor Hills estate (Photo: Samuel Isaac Chua/EdgeProp Singapore) is an indication that the area will soon become a premium residential neighbourhood. Developers may be wary of the potential influx of 11,000 residents within the 0.5 sq km area, although the areas excellent connectivity and amenities may outweigh such concerns.