3 residential sites at Lentor Hills estate released for sale
3 residential sites at Lentor Hills estate released for sale. The Urban Redevelopment Authority (URA) issued three 99-year leasehold private home sites on Tuesday (May 17), with market experts anticipating a more cautious response from developers due to sufficient supply in the area, rising construction costs, and property cooling measures.
Lentor Central and Lentor Hills Road (Parcel B) are two of the sites that have been placed out to tender. They are on the Government Land Sales (GLS) program’s confirmed list for the first half of 2022. Tenders for the sites, which potentially produce up to 735 units, close on September 13 at 12 p.m.
Another plot in Lentor Gardens is on the GLS reserve list and is only accessible for developers to apply for under the GLS reserve list, which means it will only be placed up for tender if a developer’s minimum price is acceptable to the government.
The three properties are part of the new Lentor Hills community near the Thomson-East Coast Line’s Lentor MRT Station.
Presbyterian High School, Anderson Primary School, and CHIJ St Nicholas Girls’ School are all popular schools in the area.
Future residents at all three sites will enjoy direct access via public transport to Woodlands Regional Centre, the Central Business District, and various parts of Singapore.
Coming up are also retail outlets, a supermarket, and childcare facilities within the nearby mixed-use development at Lentor Modern.
The Lentor Central site is 13,443 square meters (sq m) in size, with a maximum gross floor area (GFA) of 40,333 square meters. The plot may contain 470 apartments, with a maximum building height of 23 stories.
The Lentor Hills Road (Parcel B) site has a land area of 10,819 sq m with a maximum GFA of 22,720 sq m. A development up to eight and 19 storeys respectively may be built within the site’s low-rise and high-rise zones to yield a total of 265 units.
The reserve list site at Lentor Gardens covers 21,867 sq m and has a maximum GFA of 45,921 sq m. With eight storeys in the low-rise zone and 16 storeys in the mid-rise zone, it can house 530 units.
“Interest in the Lentor Central and Lentor Hills Road (Parcel B) sites may remain lukewarm, despite developers’ need to refill their land bank,” said Lee Sze Teck, senior director of research at Huttons Asia.
“In light of the heightened dangers posed by the cooling measures as well as growing construction prices, developers may be hesitant to purchase land in areas where there is enough.”
Mr Lee believes that the Lentor region will see up to 1,935 additional homes built if the two most recent confirmed list sites are sold. “This may be adequate to accommodate the area’s pent-up demand,” he added, adding that the Lentor Gardens site on the reserve list might not be sold.
Developers will be interested in the Lentor Central and Lentor Hills Road (Parcel B) sites, according to PropNex’s head of research and content, Ms Wong Siew Ying, but will be cautious of two other nearby plots that were recently sold and may be “more conservative” with their bids.
In July 2021, the government granted a residential site in Lentor Central (to be developed as Lentor Modern) for $784 million ($1,204 per square foot per plot ratio (psf ppr) and a residential site in Lentor Hills Road (Parcel A) for $586.6 million ($1,060 psf ppr) in January 2022.
The combined supply of these two sites is anticipated to be around 1,200 units.
“Developers will use these land pricing for neighbouring sites to evaluate their prospective bids for the Lentor Central and Lentor Hills Road (Parcel B) sites,” Ms Wong explained.
Mr Lee expects three to five bids at each of the two locations, with the top bid between $1,000 and $1,050 psf ppr “to hedge against risks.”
Click the image to read the full details of report.