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_GLS Tender Closing - Lentor Central, Lentor Hills Road (Parcel B) and Bukit Batok West Avenue 5

Just the two bids for the Lentor Hills Road (Parcel B) plot, as well as the three bids for Lentor Central came in below expectations as more developer participation was anticipated given the overall under-supply situation in the private residential market
Leonard Tay September 14, 2022

Lentor Central

The tender for the Lentor Central site closed with three bids, below expectations, despite its closer proximity to the Lentor MRT station in comparison to the other GLS site in the Lentor area that closed today. The three bids are a stark contrast to the nine bids that the previous Lentor Central GLS site (Lentor Modern) received back in July 2021, which fetched a winning bid of S$784 million or S$1,204 psf per-plot-ratio (ppr), although it was larger in size. The relatively subdued demand for this most recent Lentor Central site could stem from the multiple adjacent new developments. The top bid of about S$481.0 million or S$1,108 psf ppr is 3.7% above the second bid of S$464.0 million or S$1,068 psf ppr, and 6.8% higher than the lowest bid of S$450.6 million or S$1,038 psf ppr.

 

Lentor Hills Road (Parcel B)

The tender for Lentor Hills Road (Parcel B) closed with two bids. The top bid at S$276 million or S$1,130 psf ppr is 18.9% higher than the other bid of S$232.3 million or S$950 psf ppr. This was also 6.6% above the previous S$1,060 psf ppr at Lentor Hills Road (Parcel A) which was awarded in January 2022 to Intrepid Investments, GuocoLand (Singapore) and TID Residential Pte Ltd.

Just the two bids for the Lentor Hills Road (Parcel B) plot, as well as the three bids for Lentor Central came in below expectations as more developer participation was anticipated given the overall under-supply situation in the private residential market. Perhaps the cumulative total of almost 3,000 units comprising the multiple land sites at Lentor Central, Lentor Hills Road and Lentor Gardens together (sites that have been awarded as well as those not yet opened for tender) might have led developers to become cautious of an over-provision of private homes in this specific neighbourhood. Based on the top bids of S$1,108 psf ppr for Lentor Central and S$1,130 psf ppr for Lentor Hills Road (Parcel B), the likely selling price for the residential units of these projects when launch-ready could start from S$2,000 psf to S$2,100 psf.

Both the Lentor Central and Lentor Hills Road (Parcel B) sites are situated in the Ang Mo Kio planning area, in close proximity to the Lentor MRT station. Potential homebuyers would be attracted by the site’s connectivity to public transport and recreational facilities such as Thomson Nature Park and Yio Chu Kang Stadium and Sports Complex. The sites are also about 1 km from the renowned CHIJ St Nicholas Girls School, strengthening its appeal to parents. Furthermore, retirees and older residents currently living in the landed estates around Lentor and Yio Chu Kang Road might consider downsizing their residences as their space requirements and priorities change, serving as a source of potential buyers for a new condominium in this location.

 

Bukit Batok West Avenue 5 Executive Condominium

The Executive Condominium (EC) site at Bukit Batok West Avenue 5 is just across Bukit Batok Road to the frontier of the developing estate of Tengah. The land tender for this site closed with only four bidders, again below expectations, as more developers were expected to participate. It could be that the adjacent Bukit Batok West Avenue 8 parcel that was already awarded on 8 March 2022 with almost 400 upcoming EC units, could have deterred some developers from taking part, as this project would be able to launch first capturing prevailing demand in the vicinity. The top bid of almost S$336.1 million or S$626 psf ppr is a mere 0.2% above the second highest bid of about S$335.5 million or S$625 psf ppr, and 1.5% higher than the lowest bid of S$331.0 million, indicating that competition was tight among the four bidders. The top bid as well as the range of bids are all within expectations. Based on the top bid of S$626 psf ppr, the likely selling price for the residential units here when ready to launch could start from S$1,200 psf to S$1,300 psf. When completed, this site would offer new families condominium options, nestled at the border of the established Bukit Batok heartland area, and Singapore’s first smart and sustainable town of Tengah with its green features and smart technologies.