Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
Knight Frank Singapore’s Tay says that the most likely asking price for the non commercial units of this project could begin from above $2,000 psf, similar to the $2,080 psf unit rate of Lentor Hills Residences that released in July.
Eugene Lim, key executive officer at ERA Singapore, notes that there has been “a dilution in need” for Lentor Central as a result of the high quantity of sites to be released under the 2nd half 2023 GLS program.
” We are pleased to achieve the highest proposal at Lentor Central which notes our 4th site in the Lentor Hills Estate place,” claimed a spokesperson of Hong Leong Holdings. “If awarded, we prepare to develop a private non commercial project with about 475 units in 2 high-rise blocks, where locals are going to gain from the convenience of neighboring facilities and Lentor MRT station, adding to the place’s total appeal to possible purchasers.”
The Lentor Central area attracted only 2 proposals, with the top bid of $435.1 million submitted by a consortium comprising 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 location. The quote was 5.9% higher than the $410.8 million ($ 927 psf ppr) submitted by Frasers Property.
” They may likewise be restraining as even more land could be released next year,” Quek adds. “The government has actually publicized more new property parcels to be introduced or outdated buildings/sites slated for redevelopment.”
Additionally, several developers may be extra cautious as there certainly are macroeconomic worries, increased rates of interest, as well as moderating steps, claims Justin Quek, deputy president of OrangeTee & Tie.
“Both bids for the Lentor Central plot mirror the significantly tentative and also defensive sentiment amongst developers, in addition to the reality that the Lentor area might have way too many apartment projects, almost all being established in just a couple of years of one another,” says Tay.
The top bid is somewhat lower than the $985 psf ppr paid by a joint venture between GuocoLand and Hong Leong Holdings for the Lentor Gardens area in April last year, explains Leonard Tay, head of research study at Knight Frank Singapore. “The most up to date government land tenders in the Lentor vicinity stand for among the most affordable land fees when looked at to the previous 4 GLS spots granted from 2021 in the Lentor region,” he adds.
Six GLS locations in Lentor have been tendered to date, with another site presently on the Reserve Listing. Collectively, the areas could include some 3,500 new homes to the place.
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, alongside the tender for the site at Champions Way.
ERA Singapore’s Lim statements that the Lentor Central site falls throughout the Ang Mo Kio Planning Area and also near to Lentor MRT station and existing colleges, for example, CHIJ St. Nicholas Girls’ School, Anderson Primary School and even Presbyterian High School.