The Urban Redevelopment Authority has closed the land tender for a site at Lentor Gardens under the 2H2024 Government Land Sales (GLS) programme. The site can yield an estimated 500 residential units.
There were two bids received for this plot, which was below our expectations. The highest bid was from Kingsford Huray Development Pte Ltd at a bid price of S$429,230,000 or S$920 psf ppr. This was 1.7 per cent higher than the next highest bid from the consortium of Intrepid Investments Pte Ltd, TID Residential Pte Ltd and CSC Land Group (Singapore) Pte Ltd which was S$422,222,367 or around S$905 psf ppr. The highest bid price was slightly below our initial expectations.
Despite the positive sales momentum at the various Lentor projects, given that six residential projects with almost 3,000 units have already been launched in the Lentor area, developers might have shifted their focus to other upcoming land parcels. This could lead to increased interest in other suburban areas such as Lorong Chuan, Lakeside Drive or the mixed development at Hougang Central, where housing supply has remained limited in recent years. Moreover, the past four land tenders in Lentor have had relatively muted participation (Lentor Gardens 4 April 2023, Lentor Central 12 Sep 2023, Lentor Hills Road (Parcel B) 13 Sep 2022, Lentor Central 13 Sep 2022) with up to three bids each. Hence, it is not unexpected that developers may be eyeing alternative land parcels instead. However, given that the recent Lentor Central Residences launched well with 93 per cent or 445 out of 477 units sold during the launch weekend, we may expect healthy sales for the future project here.