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by OrangeTee & Tie Pte Ltd.

Closing tender for Lentor Central, Lentor Hills Road (Parcel B), and Bukit Batok West Ave 5

Government Land Sales

Press Release

13 Sep 2022


URA and HDB have just closed the tender for the sites at  Lentor Central, Lentor Hills Road (Parcel B), Bukit Batok West Avenue 5. Below are our comments for your consideration, please. 

https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr22-32

https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/13092022-Provisional-Tender-Results-for-Land-Parcel-at-Bukit-Batok-West-Ave-5


Lentor Central, Lentor Hills Road (Parcel B) 

The Urban Redevelopment Authority (URA) has just closed the tender for 2 land parcels at Lentor Central and Lentor Hills Road (Parcel B). 3 bids were received, with the highest bid from Forsea Residence Pte. Ltd., Soilbuild Group Holdings Ltd. and UED Alpha Pte. Ltd.at S$481,028,300 or S$1,108 psf ppr for the Lentor Central site. For the Lentor Hills Road (Parcel B) plot, 2 bids were received with the highest bid from TID Residential Pte. Ltd at S$276,360,000, or S$1,130 psf ppr.

There were 2 sites previously launched and sold in the area; Lentor Hills Road (Parcel A) which was awarded to Intrepid Investments, GuocoLand, and TID Residential in January 2022, and the previous Lentor Central site (the upcoming Lentor Modern) which was awarded to GuocoLand in July 2021.

The bid prices were close to our earlier projections of between S$1,000 and S$1,100 psf ppr, but the number of bids was lower than expected (7 to 10 bidders). Developers may have held back their bids in view of the global economic uncertainties and rising interest rate environment. Moreover, there will be a ramp-up of new home supply in the Lentor area with 6 land sale sites (5 confirmed list plots and 1 reserve list plot). Therefore, future launches may face stiffer competition for buyers.

Developers will likely observe the sales performance and launch price of Lentor Modern to decide if they will bid for future land sites in Lentor. Developers’ buying interest may be ignited if Lentor Modern achieves a good sales performance this month.

With the highest land bid at S$1,108 psf ppr and S$1,130 psf ppr for Lentor Central and Lentor Hills Road (Parcel B) respectively, we estimate that the future selling price could range between S$2,000 and S$2,100 psf and S$2,030 and S$2,130 psf respectively.


Bukit Batok West Avenue 5

The Housing Board has closed the tender for the Bukit Batok West Avenue 5 Executive Condominium site, which was launched in June 2022. The bid price was within our earlier price projection of S$620 to $700 psf ppr. Bidding interest was moderate as only 4 bids were received for this site, which was lower than our earlier expected number of bids (7 to 9 bidders).

The highest bid was from CDL Zeith Pte Ltd, at S$336,068,000 or S$626 psf ppr. Compared to the previous site at Bukit Batok West Avenue 8, fewer bids were received, and the bid price was lower.

Some developers may have held back their bids as there will be a number of ECs launching in the vicinity including Copen Grand, the adjacent plot at Bukit Batok West Avenue 8, and the Tengah Plantation Loop site (which will be launched for sale in December). Moreover, rising interest rates and higher construction costs may have deterred some developers especially since margins are not huge for EC developments.

Given the highest bid price of S$626 psf ppr at this site, we estimate that the future selling price of the project could range between S$1,300 psf and S$1,400 psf. 








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