GuocoLand sells 84% of Lentor Modern at S$1,856 to S$2,538 psf

GuocoLand : F17 0% has sold 508 units – or 84 per cent – of its Lentor Modern project’s 605 units over 2 days during its launch weekend at prices ranging from S$1,856 to S$2,538 per square foot (psf).

The integrated mixed-use development in the Lentor Hills estate in the north of Singapore reported sales at prices ranging from $1.07 million for a 527 sq ft 1-bedroom unit, to S$3.33 million for a 1,528 sq ft 4-bedroom unit, GuocoLand said in a statement on Sunday (Sep 18).

All 63 1-bedroom units and 231 2-bedroom units were sold. In addition, 182 units, or more than 73 per cent of the 248 3-bedroom units, and more than 50 per cent of the 63 four-bedroom units were also sold.

Of the new private residential condo projects that have been brought to market so far this year, the 99-year leasehold Lentor Modern is the largest with 605 units offered.

“The number of units sold on launch weekend makes (Lentor Modern) the best selling project in 2022,” said Lee Sze Teck, senior director of research at Huttons Asia. “The 1 and 2-bedroom units are the first to be sold out, reflecting buyers’ keen interest to gain a first mover advantage in this new private residential enclave. Buyers have also accepted that S$2,000 psf or higher will be the norm going forward so they are not waiting.”

In Sunday’s statement, GuocoLand CEO Cheng Hsing Yao said: “Lentor Modern demonstrated once again our acumen to spot new locations with great potential, and our ability to introduce innovative and exceptional developments to anchor a new district identity.”

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GuocoLand, part of Malaysian tycoon Quek Leng Chan’s Hong Leong Group of Malaysia, and other companies in the Hong Leong family have several residential projects lined up in the Lentor neighbourhood.

GuocoLand had bagged the Lentor Central site that Lentor Modern is being built on at a state land tender in July 2021. With its bid of S$784.1 million, or S$1,204 per square foot per plot ratio (psf ppr), it pipped the second-highest bid of S$1,152 psf ppr from a tie-up comprising Intrepid Investments, Hong Realty and TID Residential; the trio are part of the Hong Leong Group Singapore, helmed by Mr Quek’s Singaporean cousin Kwek Leng Beng.

The third-highest bid, at S$1,131 psf ppr, was also from Hong Leong-linked entities – a tie-up between City Developments Ltd (CDL) and Hongkong Land unit MCL Land. CDL is the SGX-listed property and hotel arm of Hong Leong Group Singapore.

Commenting at the time, property consultants noted that the winning bid was higher than expected, and also topped the S$1,118 psf ppr winning bid for a parcel in Ang Mo Kio Avenue 1 at an earlier state tender in May.

Yet at a state land tender that closed just last week on Sep 13, two plots offered near the Lentor MRT station fetched just three bids – fewer than anticipated. Top bids for the Lentor Central site (S$1,108 psf ppr) and Lentor Hills Road Parcel B (S$1,130 psf ppr) were however within expectations. GuocoLand had submitted the third-highest bid for the Lentor Central parcel, while Hong Leong-linked TID Residential came in at the top for the Lentor Hills Road site.

An earlier government tender in January this year saw another Lentor Hills Road plot sold to a joint venture between Intrepid Investments, GuocoLand and TID Residential at the highest bid price of S$586.6 million, or S$1,060 psf ppr. The site is now being developed into Lentor Hills Residences.

New private residential launches this year, meanwhile, have met with firm demand at record pricing levels, with S$2,000 psf now regarded as a “new normal” for suburban private housing. Most recently, Frasers Property sold 118 units or nearly 75 per cent of its Sky Eden@Bedok project, at an average price of about S$2,100 psf on the first day of the project launch.

At the Lentor Modern launch over the weekend, about 92 per cent of total buyers were Singaporeans, with permanent residents and foreigners making up the remaining 8 per cent, GuocoLand said. The buyer profiles are mainly owner-occupiers, with upgraders constituting the majority, the company said.

Lentor Modern will have access to an integrated mall with a wide range of retail and food and beverage options, as well as a 12,000 sq ft supermarket and a 10,000 sq ft childcare centre.