Kingsford Group Submits Top Bid 920 Psf Ppr Lentor Gardens Gls Site
The bidding for the 222,161 sq ft Lentor Gardens government land sales (GLS) site ended on April 3, with two offers received. The highest bid of $429.23 million, or $920 per square foot per plot ratio (psf ppr), was made by Chinese developer Kingsford Group. The second bid, which was just 1.66% lower, came from a consortium comprising Hong Leong Holdings, TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan), and CSC Land Group, at $422.22 million or $905 psf ppr.
The Lentor Gardens site is the seventh GLS parcel in the upcoming private residential estate of Lentor Hills. The site has the potential to yield around 500 residential units, including a mix of low-rise and mid-rise blocks of up to 16 storeys. This site has attracted the attention of both local and foreign developers, and the top bid marks Kingsford Group’s debut in the Lentor Hills area. In its statement, the developer expressed plans to build a new project with around 500 units if awarded the site.
The area has been drawing in more homebuyers due to the nearby Lentor MRT Station on the Thomson-East Coast Line, as well as ongoing developments in housing, retail, and greenery. Based on the top bid of $920 psf ppr, Ismail Gafoor, CEO of PropNex, estimates the average selling price for the new project at Lentor Gardens to be above $2,150 psf. This is further reinforced by the strong launch performance of the nearby 477-unit Lentor Central Residences, which saw a 93% sales rate on its launch weekend last month. Mohan Sandrasegeran, SRI’s head of research and data analytics, believes that this robust take-up further strengthens confidence in the area, and shows that projects well-positioned and sensibly-priced can still achieve good absorption rates, despite earlier fears of a supply overhang.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, only 135 out of the 2,954 units within the Lentor precinct remain unsold as of April 3, despite this being the seventh site for sale in the area. This number of bids is similar to previous GLS tenders in Lentor, but significantly lower compared to the earlier Bayshore Road GLS tender. This could be due to other more attractive sites like Chencharu Close, Hougang Central, and Telok Blangah Road in the pipeline for launch. Lee explains that developers may be holding out for these sites instead.
Over at Springleaf, just one MRT station away, the Upper Thomson Road (Parcel B) residential site by a joint venture between GuocoLand and Hong Leong Holdings will add another 940 residential units to the area, bringing the total new housing stock to 4,390 units within a 2km radius. ERA Singapore’s CEO, Marcus Chu, believes that this could potentially dilute demand from potential upgraders in surrounding areas such as Ang Mo Kio, Yio Chu Kang, and Yishun.
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Although buyers’ sentiment and home sales have improved in recent weeks, PropNex’s Ismail Gafoor warns of potential downside risks, such as the newly announced tariffs on all goods entering the US, which could disrupt international trade and impact the global economy.