GuocoLand to launch its 605-unit Lentor Modern this Saturday
The 99-year leasehold site located at Lentor Gardens recently drew only one bid from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group) at the tender which closed today, with a bid of $486.8 million. This translates to a land rate of $985 psf per plot ratio (psf ppr).
A GuocoLand spokesperson shared their vision on this site, “We plan to develop a new high-end residential property with 533 units and childcare facilities of 600 sqm.” The future development will contribute to their goal to transform the Lentor Hills estate, and make it known as a premium residential area.
Mark Yip, the CEO of Huttons Asia said the $958 psf ppr bid is the lowest for a land parcel in the Lentor precinct, and this is the first residential GLS tender to see only one bid since the Silat Avenue GLS site in 2018, won by a consortium led by UOL Group for $1.035 billion. The site was launched as the 1,074-unit Avenue South Residences in September 2019 and is now fully sold.
In September last year, two other residential GLS sites at Lentor were awarded. The Lentor Central was won by a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers, with a bid of $481.03 million ($1,108 psf ppr). Meanwhile, a bid of $276.36 million ($1,130 psf ppr) by TID (a joint venture between Hong Leong Group and Mitsui Fudosan) was the top bid for the Lentor Hills (Parcel B), which can yield 265 units.
A GLS located at Lentor Hills Road (Parcel A) was sold at $586.6 million ($1,060 psf ppr) in January 2022. GuocoLand, Hong Leong Holdings and TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan) developed the 598-unit Lentor Hills Residences from this site, which is expected to be launched soon.
The 605-unit Lentor Modern integrated development was launched last September by GuocoLand. 84% of the units were sold on launch weekend with an average price of $2,104 psf, and the site is now 88% sold. The GLS site was previously purchased for $784.1 million ($1,204 psf ppr) in July 2021.
According to Yip, bids have been on a downward trend since the launch of the first GLS at Lentor, likely because developers are mindful of the government’s efforts in selling land regularly. Additionally, developers may have been deterred by the cloudy economic outlook and risk of Additional Buyer’s Stamp Duty.
The 1H2023 GLS Programme has two more available sites in the Lentor area; one at Lentor Central with 475 units yield, which is expected to be launched for the tender this month. The other, a 500-unit residential site at Lentor Gardens, is on the Reserved List.
Leonard Tay, head of research at Knight Frank Singapore states that these seven residential sites in Lentor could bring about some 3,500 new units to the area. This would make up around 11,000 new residents in a span of three to six years. The Lentor Gardens site is situated near the Lentor MRT station and connectivity to public transport, recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex, as well as the CHIJ St Nicholas Girls’ School, providing potential homebuyers with more convenience.
Steven Tan, CEO of OrangeTee & Tie thinks the launch at Lentor Gardens could see units priced around $1,950 to $2,050 psf when it eventually does.
GuocoLand has established themselves as a major player in the Lentor Hills estate with their numerous projects (Photo: Samuel Isaac Chua/EdgeProp Singapore)
With this, the Lentor area is set to be transformed in the next few years, making it a prime spot for new and old residents alike.