GuocoLand tops bid for Lentor Central site with $1,204 psf ppr; sets new record for OCR land prices
The tender for the Lentor Central government land sale (GLS) site closed with nine bids today. The highest bid of $784.1 million, which translates to a land rate of $1,204 psf per plot ratio (psf ppr), was submitted by GuocoLand.
“If we are awarded the site, we are envisioning a new mixed-use, transit-oriented development of 25 storeys with around 600 residences that will enjoy the convenience of having a substantial amount of commercial, F&B and retail spaces, including a supermarket and more than 10,000 sq ft of child care facilities,” says GuocoLand in a statement.
The price was 4.5% higher than the second highest bid of $1,152 psf ppr by Hong Leong Group and TID Pte Ltd, a joint venture between Hong Leong and Japanese developer Mitsui Fudosan.
The top bid of $1,204 psf ppr is also 7.7% higher than the winning bid of $1,118 psf ppr for the Ang Mo Kio Avenue GLS tender which closed in May 2021.
The response seen in this tender indicates the developers’ strong confidence in the suburban residential market, which has been showing signs of pent-up demand amidst diminishing supply and lack of new launches in the OCR [Outside Central Region],” says Ismail Gafoor, CEO of PropNex.
The 99-year leasehold site of 186,001 sq ft at Lentor Central is located right next to the upcoming Lentor MRT station on the Thomson-East Coast Line. The station is expected to be operational later this year. The site attracted nine bids partly because of its proximity to the MRT station, Nicholas Mak, ERA head of research & consultancy points out.
According to GuocoLand, the site will be integrated with the Lentor MRT station. “Residents have immediate access to the Thomson-East Coast Line which takes people to Bukit Timah, Botanic Gardens, Orchard Road, Marina Bay all the way to East Coast,” says a GuocoLand spokesman.
The site at Lentor Central is located in the Thomson area that has mostly landed homes, as well as close to nature reserves and parks. Top schools in the area include Ai Tong School, Chinese High School, Raffles Institution, Raffles Girls’ School and CHIJ St Nicholas Girls’ School.
“It’s probably the best site in the 1H2021 GLS programme,” says Mark Yip, CEO of Huttons Asia. “The buoyant HDB resale market means there will be more HDB upgraders looking for options in the market and there are not many new mass market condo launches in 2022.”
Besides HDB upgraders, Huttons sees pent-up demand in the Lentor area, as the last new condominium launch was the 421-unit The Calrose in 2005.
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