Lentor Central GLS site receives two bids, highest bid at $982 psf ppr
The tender for the residential government land sale (GLS) location at Lentor Central closed on Sept 12, along with the tender for the site at Champions Way.
Eugene Lim, major executive officer at ERA Singapore, indicates that there has been “a dilution in need” for Lentor Central because of the sheer amount of areas to be launched under the 2nd half 2023 GLS program.
” They may additionally be restraining as more land could be released next year,” Quek adds. “The authorities has actually publicized a lot more new ground plots to be released or older buildings/sites register for redevelopment.”
ERA Singapore’s Lim statements that the Lentor Central site drops within the Ang Mo Kio Planning Area and close to Lentor MRT station and even founded schools, such as CHIJ St. Nicholas Girls’ School, Anderson Primary School and Presbyterian High School.
Knight Frank Singapore’s Tay says that the most likely selling price for the residential units of this property could commence from above $2,000 psf, identical to the $2,080 psf unit price of Lentor Hills Residences which released in July.
The top bid is somewhat less than the $985 psf ppr paid by a joint business venture in between GuocoLand along with Hong Leong Holdings for the Lentor Gardens area in April last year, mentions Leonard Tay, head of research at Knight Frank Singapore. “The most up to date government land tenders in the Lentor surroundings stand for amongst the most affordable land prices when looked at to the previous 4 GLS sites granted from 2021 in the Lentor region,” he includes.
Furthermore, some developers may be a lot more mindful as there certainly are macroeconomic uncertainties, raised rate of interest, and cooling actions, states Justin Quek, deputy chief executive officer of OrangeTee & Tie.
” We are pleased to attain the highest possible proposal at Lentor Central which marks our 4th site in the Lentor Hills Estate area,” claimed a spokesman of Hong Leong Holdings. “If awarded, we intend to construct a nonpublic residential project with approximately 475 units in two high-rise blocks, where citizens are going to take advantage of the comfort of neighboring services and Lentor MRT station, contributing to the place’s general look to potential purchasers.”
The Lentor Central site drew only 2 proposals, with the main quote of $435.1 million provided by a consortium making up Hong Leong Holdings, GuocoLand as well as CSC Land Group. This works out to $982 psf per plot ratio (psf ppr) for the 99-year leasehold, 158,264 sq ft area. The proposal was 5.9% higher than the $410.8 million ($ 927 psf ppr) provided by Frasers Property.
“Both bids for the Lentor Central plot mirror the significantly undecided and defensive sentiment among developers, as well as the reality that the Lentor part might have too many condominium plans, almost all being built within a couple of years of one another,” says Tay.
Six GLS areas in Lentor have actually been tendered to date, with another location presently on the Reserve List. Together, the areas might include some 3,500 brand-new houses to the location.