TWO residential development sites at Lentor Gardens and Lentor Central have been launched for sale under the Government Land Sales (GLS) programme.
The Lentor Gardens parcel, on the Urban Redevelopment Authority's confirmed list, sits on 21,866.7 square metres (sq m), with a maximum gross floor area (GFA) of 45,921 sq m, and is expected to yield about 530 housing units. These units could span eight storeys under low-rise zone requirements, or 16 storeys under the mid-rise zone.
The Lentor Central site spans an area of 14,703.2 sq m and has a maximum GFA of 41,169 sq m. The site is estimated to yield about 475 housing units across five storeys under the low-rise zone. The Lentor Central parcel comes under the reserve list, and will only be released for sale if a developer submits an acceptable offer in the state land tender.
Analysts expect interest in the latest tender to be lukewarm, with two to five bids anticipated for the Lentor Gardens parcel and a top bid of between S$1,050 psf ppr and S$1,150 psf ppr. Wong Siew Ying, head of research and content, PropNex Realty, said the top bid for Lentor Gardens could come in the S$519 million to S$544 million range, or between S$1,050 and S$1,100 psf ppr. They do not see the Lentor Central site being released for sale.
Huttons Asia's senior director of research Lee Sze Teck said while the Lentor district is "shaping up as a private residential enclave", multiple projects launching in the district within the next two years could pose a higher perceived risk to potential bidders. (* see amendment note below)
These include the Lentor Modern and Lentor Hills Residences, as well as another land parcel in Lentor Central that was awarded to Yanlord Land Group last month.
Lentor Modern, being built by GuocoLand on state land sold in July 2021, was marketed in September to strong sales, moving 84 per cent of its 605 units at an average price of about S$2,100 psf. "While this may indicate some pent-up demand for homes in the locale, developers would be mindful of the estimated more than 1,300 units that will soon come into the market from the other three Lentor sites, with Lentor Hill Residences potentially hitting the market in Q1 2023," said Wong.
Citing the tightening of housing loan limits in the latest round of property cooling measures, Steven Tan, chief executive of OrangeTee & Tie, said the reduced loans available to buyers may affect the price of future launches in this area.
Tan noted that the recent September tender for Lentor sites drew fewer-than-expected bids. There were three bids for a Lentor Central parcel which sold at S$1,108 psf ppr, while Lentor Hills Road (Parcel B) drew only two bids and sold for S$1,130 psf ppr.
The tender for the confirmed Lentor Gardens site will close on Apr 4, 2023.
*Amendment note: An earlier version of this article had incorrectly stated that Lee Sze Teck said the projects launching in the Lentor district within the next two years could depress selling prices.