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On September 17, the Singapore-listed real estate company GuocoLand reported that it had sold 508 out of a total of 605 units on the first day of Lentor Modern debut which translates to about 84% based on the total units.
GuocoLand reports that Singaporeans accounted for 92% of the total purchases, while permanent residents and foreigners made up the remaining 8% of purchasers. According to GuocoLand, the purchasers are almost all owner-occupants, with upgraders making up the vast bulk of the group.
According to GuocoLand, the prices of apartments that were transacted at Lentor Modern at the launch varied anywhere from $1,856 psf to $2,538 psf.
“At these costs, we think that Lentor Modern is likely to establish the bar for following projects to be launched in this region,” says Ismail Gafoor, CEO of PropNex. “This area is poised to see a number of new construction projects coming up in the near future.”
According to Mark Yip of Huttons Asia, the amount of units sold at Lentor Modern on its opening weekend makes it “the best-selling property in 2022.” Lentor Modern is the biggest private non-landed residential project that has been brought out this year.
“Buyers have also recognized that $2,000 psf or greater would be the standard psf for Outside Central Region (OCR) developments moving ahead,” says Yip. “This is an important point to keep in mind.” “It indicates the enthusiasm that purchasers have in being among the first to acquire a footing in this brand-new private residential enclave,”
A New Way of Life, The Adaptability of Space
The first unit type to be scooped up and sold out completely in Lentor Modern were all 231 of two-bedroom units and all 63 of one-bedroom units. In addition, 182 apartments, which is more than 73% of the total 248 three-bedroom apartments, were purchased, and more than 50% of the total 63 four-bedroom apartments were rented.
According to GuocoLand, couples and families with fewer members opted for apartments with one or two bedrooms, while bigger families with more members preferred units with three or four bedrooms because of the additional space for living and leisure areas.
Lentor Modern, which is the only fully integrated, mixed-use property in the soon-to-be-built Lentor Hills estate, has drawn a large number of homeowners who are ready to pay a premium for the convenience. They just need to take one elevator journey to go to either the 96,000-square-foot shopping center or the Lentor MRT Station from their residence. “Such as the lifestyle guide of ‘one-lift-ride’ to all of the amenities such as supermarket, MRT station, and F&B” says Dora Chng of GuocoLand. “This allows residents to access all of these conveniences without having to take more than one elevator.”
The deputy chief executive officer of ERA Singapore, Doris Ong, feels that the lifestyle offered by the integrated development is another factor that attracted many young couples. “They would rather channel their money into purchasing a home where they can enjoy the lifestyle in this up-and-coming estate,” she continues. “Rather than buying a vehicle, they would rather channel their money into buying a property.”
According to Lee Sze Teck, at Huttons Asia, one of the attractions of the units, particularly the two- to four-bedroom varieties, is the flex area, which they may utilize in a manner that is conducive to their way of life. “This strikes a chord with prospective purchasers,” he adds.
Since the project was opened for preview on September 2, the sales gallery at Lentor Modern has been a happening place. Before the official introduction of the project, the developer solicited expressions of interest from potential purchasers and received around 1,641 checks from those buyers over the preceding two weeks. “A key indication of the project’s successful sales was the amount of checks collected during the preview time,” says Lee of Huttons. “The project was a great success.”
During the VIP preview that took place on September 16, the day before the public debut, a total of 111 units were purchased. This number includes those multiple-unit customers who were made up of members of the same family who chose to acquire two or more units together. According to the number of checks that were cashed, the number of units that were sold was more than 500, which results in a sales conversion rate of 31%.
Flexispace, which is included in the two- to four-bedroom homes, has proven to be appealing to prospective homeowners. At the showflat with four bedrooms, the flexi-space was converted into a workstation for two people.
Interest from Homebuyers all over Singapore
In November of last year, a project saw its first weekend of sales total more than 500 units, which was the most recent time this occurred. It was the preview of CanningHill Piers at Clarke Quay, by CapitaLand Development and City Developments Ltd JV. During the launch, 538 out of a total of 696 apartments in the project were sold at an average price of around 3,000 psf.
According to Ken Low of SRI, the positive reaction received at Lentor Modern is comparable to the results obtained at CanningHill Piers. Nevertheless, Lentor Modern featured a healthy mix of residents who were both homeowners and investors. He credits this in part to the fact that around 80% of the apartments were of a mix of two- and three-bedroom kinds, with just 10% of the units being of one- and four-bedroom types respectively.
SRI’s Low witnessed purchasers “from all throughout Singapore,” in addition to locals from the adjacent neighborhoods of Lentor estate, Ang Mo Kio, Seletar, and the Thomson region. He continues by saying, “Homebuyers are eager to relocate to Lentor since the completion of the Thomson-East Coast Line would mean that the Stevens MRT Interchange will be only seven stops away, and the Orchard Road MRT Interchange will be just nine stops away.”
According to Low, the fact that the tender closure for two government land sales (GLS) properties in the Lentor Hills estate took place on September 13 has “further solidified the prices at the Lentor locality.”
TID, a joint venture between Hong Leong Group and Mitsui Fudosan, made the highest offer of $1,130 psf per plot ratio (psf ppr) for the tender of Lentor Hill Road. This bid was for the property located at Lentor Hills Road (Parcel B). This was 6.6% more than the $1,060 psf ppr that TIID, along with Hong Leong Holdings and GuocoLand had secured in January of this year for Lentor Hills Road (Parcel A).
The consortium consisting of China Communications Construction Co., Soilbuild Group Holdings, and United Engineers, a subsidiary of Yanlord Land, submitted the highest proposal for the Lentor Central site, which was 1,108 dollars per square foot per year.
Given that it is the sole site for an integrated mixed-use development among the four GLS sites that have been offered for sale to far, GuocoLand has bought the Lentor Modern site in July 2021 for a price of $1,204 per square foot per year (psf ppr). On the Reserve List, there are two more properties that are up for sale.
According to Nicholas Mak, director of research and consulting for ERA Realty Network, “In point of fact, the bid values obtained for the GLS plots [on September 13] had largely helped to the robust sales at Lentor Modern.”
At the Lentor Hills estate, Lentor Modern is the only integrated mixed-use complex that has been developed.
Confidence that Lies Underneath
Given that close to 85 percent of the total apartments were sold on the first weekend of opening, Mak, an agent with ERA, hypothesizes that purchasers of Lentor Modern must have “an underlying faith” in the location of the development.
According to Gafoor of PropNex, “the robust purchasing demand in Lentor Modern is reflective of its prominence as the sole integrated development in the Lentor Hills estate and a potential community focal point inside the planned Lentor Hills estate.”
GuocoLand has a proven track record of successfully reshaping neighborhoods via the construction of integrated mixed-use buildings like Guoco Tower at Tanjong Pagar and the soon-to-be-built Guoco Midtown on Beach Road. Both of these projects are now in the planning stages. Cheng Hsing Yao, the CEO of GuocoLand, said in a statement that “Lentor Modern displayed once again our aptitude to discover new places with significant potential, and our ability to bring creative and excellent buildings to establish a new district character.”
For more than a decade, the enclave of Lentor and Upper Thomson has not seen the debut of a significant number of new condominium projects. According to Gafoor of PropNex, the 479-unit Meadows At Peirce was the last new project to be introduced in the neighborhood. It was opened in July of 2009.
Units at Meadows @ Peirce have transacted at prices ranging from $1,087 psf for a 2,852 sq. ft., four-bedroom unit to $1,575 psf for a 635 sq. ft., two-bedroom unit, according to caveats lodged from May to August to date. These prices are based on the size of the unit and the number of bedrooms it has.
The Thomson Grove, which consists of 116 freehold units and was built by Far East Organization and finished in 1984, and The Calrose, which consists of 421 freehold units and was developed by MCL Land and started construction in 2005 and was finished in 2007, are the two existing private condominiums that are located the closest to the upcoming Lentor Hills estate. Both of these establishments can be found along Yio Chu Kang Road.
According to caveats that were filed between February and April of this year, prices for units at The Calrose, a low-rise development with five stories, have changed hands at prices ranging from $1,292 per square foot for a 2,142 square foot, three-bedroom unit to $1,569 per square foot for a 926 square foot, two-bedroom unit.
The lone home at the eight-storey Thomson Grove that was sold on the resale market this year was a 1,485 square foot, three-bedroom flat on the sixth level that sold for $1,528 per square foot, according to a caveat that was filed in July. The unit was purchased by a buyer.
The AMO Residence that was launched in July (98% of 372 units sold), and also Sky Eden which was launched in September (75% of 158 units sold), are the two previous projects that have been launched for sale in the OCR this year, according to Gafoor. Lentor Modern is the third project to be launched for sale in the OCR this year. In spite of the fact that there is a decreasing supply of new private houses in the OCR, “all three projects were very well accepted by purchasers,” he notes.
Homebuyers who wish to catch the next wave of new launches can look at Kovan Jewel, Sanctuary @ Newton and K Suites which is expected to launch in October.
