A partnership consisting of Hong Leong Holdings, TID and GuocoLand placed the highest offer of $586.6 million (a joint venture between Hong Leong and Mitsui Fudosan). The price per plot ratio came to $1,060 psf.
“We are thrilled to have received the highest offer for Lentor Hills Road Parcel A,” a Hong Leong Holdings spokeswoman adds. “We want to construct a 600-unit residential building where residents would enjoy the convenience of surrounding facilities. The presence of the Lentor MRT station across the street “will contribute to the site’s overall attractiveness to purchasers,” the spokeswoman says.
In the future, the Lentor Hills Estate is planned to be a sustainable and pedestrian-friendly neighborhood. Residents of the new Lentor Hills Road Parcel A development may expect to be close to parks and natural reserves, as well as a daycare center and a diverse range of commercial, F&B, and retail opportunities.
This is due to GuocoLand’s construction of a new integrated complex just across the street. With a bid of $784.1 million ($1,205 psf ppr), it secured the Lentor Central GLS site last year. GuocoLand plans to build three 25-story residential buildings with 600 apartments, as well as a 96,000-square-foot commercial platform with food and beverage shops and a supermarket. The project will be linked to the Lentor MRT station, which opened earlier this year. In the second part of this year, the project at Lentor Central is planned to begin.
Winning this property boosts GuocoLand’s position and permits it to build a large-scale integrated development. The $1,205 per square foot per year pricing was a record for a GLS site in the mass market region.
According to Tricia Song of CBRE, there have been no new releases in the region in recent years. The Panorama at Ang Mo Kio Avenue 2, which opened in January 2014 and was finished in 2017, was the most recent construction. Castle Green, a 99-year leasehold project, and Seasons Park, a 99-year leasehold project, were both built in 1997 and sold for $939–$950 psf in 2021. Meanwhile, in 2021, condos at the freehold The Calrose, which opened in 2007, sold for $1,344 psf.
According to CBRE’s Song, the developer might be targeting launch pricing of $1,800 to $1,900 per square foot at the Lentor Hills Road (Parcel A) location.
The offer of $1,060 psf ppr for the Lentor Hills Road Parcel A, which is lower than the $1,205 psf ppr at Lentor Central, gives “a comfortable margin” for GuocoLand, according to Nicholas Mak, ERA’s head of research and consulting. “The new condominium on this new location may be offered for $1,950 to $2,050 per square foot in the future,” he adds.