Lentor Central GLS site receives two bids, highest bid at $982 psf ppr

The tender for two residential government land sale (GLS) sites at Lentor Central and Champions Way closed on Sept 12. The Lentor Central site drew two bids, with the top bid of $435.1 million submitted by a consortium comprising Hong Leong Holdings, GuocoLand and CSC Land Group, at a rate of $982 psf per plot ratio (psf ppr).

Eugene Lim, key executive officer at ERA Singapore, notes that there was “a dilution in demand” for Lentor Central due to the sheer number of sites to be released under the second half 2023 GLS programme. Justin Quek, deputy chief executive officer of OrangeTee & Tie, observes that developers may also be holding back due to macroeconomic uncertainty, elevated interest rates, and cooling measures.

The Bukit Panjang EC, is well-connected to various amenities and lifestyle centers in the city. There are several restaurants, shopping centers, and schools in the vicinity for residents to explore. It is a stone’s throw away from the HillV2 and Junction 10, as well as being minutes away from the Bukit Panjang Plaza. Besides, Orchard Road and the CBD are only a short journey away.

The top bid is marginally lower than the $985 psf ppr paid by a joint venture between GuocoLand and Hong Leong Holdings for the Lentor Gardens site in April last year. Leonard Tay, head of research at Knight Frank Singapore, points out that the latest government land tenders in the Lentor vicinity represent among the lowest land rates when compared to the previous four GLS sites awarded from 2021 in the Lentor area.

The project is expected to include about 475 units in two high-rise blocks and benefit from nearby amenities and Lentor MRT station. ERA Singapore’s Lim remarks that the Lentor Central site is situated within the Ang Mo Kio Planning Area and in close proximity to Lentor MRT station and established schools.

Knight Frank Singapore’s Tay says that the likely selling price for the residential units of this project could start from above $2,000 psf, similar to the $2,080 psf unit price of Lentor Hills Residences which launched in July. He adds that the two bids for the Lentor Central plot reflect the increasingly tentative and defensive sentiment among developers, as well as the fact that the Lentor area might have too many condominium projects, all being developed within a few years of each other.

The tender for the Lentor Central and Champions Way GLS sites both drew a total of two bids. The top bid of $904 psf ppr for Champions Way was submitted by City Developments Limited (CDL). If awarded, these two sites could together add some 3,500 new homes to the area.

A spokesman of Hong Leong Holdings expressed their pleasure at achieving the highest bid at Lentor Central, which marks their fourth site in the Lentor Hills Estate area.