SINGAPORE (EDGEPROP) – While the tender for the government land sale (GLS) on January 18 for Jalan Tembusu ended with 8 bids, the parcel at Lentor Hills Road (Parcel A) got just half that number.

The highest bid of $586.6 million was received from a consortium formed by GuocoLand, Hong Leong Holdings and TID (a joint venture between Mitsui Fudosan and Hong Leong). The rate worked out to $1,060 psf per plot ratio.

“We are delighted to achieve the top bid for Lentor Hills Road Parcel A,” says Hong Leong Holdings spokesperson. “We plan to construct a 600-unit housing development where residents will gain from the convenience of amenities close by.” Having Lentor MRT station sited across the street “is a plus point to the plot’s overall appeal to purchasers,” adds the spokesperson.

This is because GuocoLand is developing a new integrated development at the Lentor Modern location. It had won the GLS site the previous year with a bid of $784.1 million ($1,205 psf ppr). GuocoLand intends to establish three 25-storey, residential blocks with 600 units, and a 96,000 square feet commercial podium with supermarket and F&B outlets. The development will be integrated with the Lentor MRT station that began operations last year. The project at Lentor Central is predicted to launch sometime in September of 2022.

For GuocoLand, winning this land fortifies its presence and permits it to build a large-scale integrated development. The $1,205 psf ppr price was thought to be a record rate for a GLS site in the Outside Central Region or suburban.

There are little new launches in the region in recent years, notes CBRE head of research for Southeast Asia Tricia Song. The latest development was the AMO Residence Project at Ang Mo Kio Avenue 1 recently. Older projects nearby include 99-year leasehold Seasons Park and Castle Green, both completed in 1997, which transacted at a median price between $939–$950 psf in 2021. Meanwhile, apartments at The Calrose, which was completed in 2007, transacted at $1,344 psf in 2021.

Ms Tricia Song estimates that the developer likely be looking at launch rates in the $1,800 to $1,900 psf range for Lentoria, located at the Lentor Hills Road (Parcel A) site.

ERA head of research and consultancy Nicholas Mak, reckons that the bid of $1,060 psf ppr for the Lentor Hills Road Parcel A, since it is lower than the $1,205 psf ppr at Lentor Central, gives “a comfortable margin” for GuocoLand. “The new residential development on this new plot could be launched in the future at $1,950 to $2,050 psf,” he comments.

Source: https://www.edgeprop.sg/property-news/hong-leong-led-joint-venture-submits-highest-bid-1060-psr-ppr-lentor-hills-road-parcel