The Urban Redevelopment Authority (URA) launched three 99-year leasehold private residential sites on Tuesday (May 17), with market experts expecting developers to bid more cautiously given the ample supply in the area, rising construction costs, and property cooling measures.
Two of the sites—Lentor Central and Lentor Hills Road (Parcel B)—have been launched for tender. They are on the confirmed list of the Government Land Sales (GLS) programme for the first half of 2022. The tender for these sites will close at 12 pm on September 13, and they can yield a total of 735 residential units.
Another site at Lentor Gardens is on the reserve list of the GLS programme and is available for application, which means it will only be put up for tender after the government accepts a minimum price submitted by a developer.
These three plots are located in the new Lentor Hills estate, near the Lentor MRT station on the Thomson-East Coast Line.
Prestigious schools such as Presbyterian High School, Anderson Primary School, and CHIJ St. Nicholas Girls’ School are nearby.
Future residents of these three plots will have direct access via public transport to the Woodlands Regional Centre, the Central Business District (CBD), and various parts of Singapore.
Retail shops, a supermarket, and childcare facilities will be available within the upcoming integrated development, Lentor Modern.
The Lentor Central site has a land area of 13,443 square metres and a maximum gross floor area (GFA) of 40,333 square metres. It can be built up to 23 storeys high and can accommodate 470 residential units.
The site at Lentor Hills Road (Parcel B) has a land area of 10,819 square metres and a maximum GFA of 22,720 square metres. It can accommodate 265 residential units, with building heights of up to 8 storeys in the low-rise zone and 19 storeys in the high-rise zone.
Related Articles:
The reserve list site at Lentor Gardens has a land area of 21,867 square metres and a maximum GFA of 45,921 square metres. It can yield 530 residential units, with low-rise buildings of 8 storeys and mid-rise buildings of 16 storeys.
Anjia SG’s senior property agent, Leo Kwek, said: “Although developers need to replenish their land banks, they will likely adopt a wait-and-see approach for the Lentor Central and Lentor Hills Road (Parcel B) sites.”
“Faced with increased risks from cooling measures and rising construction costs, developers may not want to acquire land in an area with ample supply.”
Mr. Kwek estimates that if the two sites on the latest confirmed list are sold, a maximum of 1,935 new homes could be developed in the Lentor area. He said: “This may be sufficient to meet the current pent-up demand in the region, so the Lentor Gardens site on the reserve list might not be triggered for sale.”
Leo Kwek also mentioned that while developers are interested in the Lentor Central and Lentor Hills Road (Parcel B) sites, they will also be mindful of the other two plots recently sold nearby, so their bids may be more cautious.
In July 2021, the government awarded the residential with commercial at first storey site at Lentor Central (to be developed as Lentor Modern) for $784 million, or $1,204 per square foot per plot ratio (psf ppr). In January 2022, the Lentor Hills Road (Parcel A) site was awarded for $586 million ($1,060 psf ppr).
These two sites can supply a total of approximately 1,200 residential units.
Mr. Kwek said, “Developers will refer to the land prices of nearby plots to gauge their bids for the Lentor Central and Lentor Hills Road (Parcel B) sites.”
Mr. Kwek stated that these two sites might attract three to five bidders, with top bids ranging from $1,000 to $1,050 psf ppr to hedge against risks.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
