The tender for the Jalan Tembusu Government Land Sales (GLS) site closed on January 18 with eight bids, but the site at Lentor Hills Road (Parcel A) drew only half that number.
The highest bid of S$586.6 million came from a consortium comprising Hong Leong Holdings, GuocoLand, and TID (a joint venture between Hong Leong Asia and Mitsui Fudosan). The price translates to S$1,060 per square foot per plot ratio (psf ppr).
A spokesperson for Hong Leong Holdings said, “We are pleased to have emerged as the highest bidder for the Lentor Hills Road Parcel A site.” “We plan to build a residential development of 600 units where residents will enjoy the convenience of nearby amenities.” Having the Lentor MRT station just across the road “will add to the overall appeal of the area for homebuyers,” the spokesperson added.
The Lentor Hills estate is designed to be a sustainable and pedestrian-friendly neighborhood. With the new development at Lentor Hills Road (Parcel A), residents are expected to enjoy proximity to parks and nature reserves, as well as childcare centers, and a wide range of commercial, F&B, and retail options.
This is because GuocoLand is developing a new integrated development across the road. The company won the Lentor Central GLS site last year with a bid of S$784.1 million (S$1,205 psf ppr). GuocoLand plans to develop three 25-storey residential towers with 600 units, as well as a 96,000 sq ft commercial podium that includes F&B outlets and a supermarket. The project will be integrated with the Lentor MRT station, which opened last year. It is expected to be launched in the second half of this year.
For GuocoLand, winning this site would strengthen its presence and allow it to undertake a large-scale integrated development. The S$1,205 psf ppr price was considered a record for a GLS site in the suburbs or Outside Central Region.
AnjiaSG property agent Leo Kwek pointed out that there have been no new project launches in the area in recent years. The latest development was The Panorama on Ang Mo Kio Avenue 2, launched in January 2014 and completed in 2017. Older nearby projects include the 99-year leasehold Castle Green and Seasons Park, both completed in 1997, which saw median transacted prices of S$939 psf to S$950 psf respectively in 2021. Meanwhile, units at the freehold The Calrose, completed in 2007, changed hands at S$1,344 psf in 2021.
AnjiaSG property agent Leo Kwek estimates that the developer might launch the project at Lentor Hills Road (Parcel A) with selling prices between S$1,800 psf and S$1,900 psf.
Kwek believes that the bid price of S$1,060 psf ppr for the Lentor Hills Road Parcel A site, being lower than the S$1,205 psf ppr for the Lentor Central site, offers GuocoLand a “fairly decent profit margin.” He said, “The new condominium on this new site could potentially be launched at prices between S$1,950 psf and S$2,050 psf in the future.”
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