_Knight Frank Commentary (GLS Tender Closing of Lentor Gardens)

Tender Closing for GLS Site

Lentor Gardens

There were only two bidders for the Lentor Gardens site, as most developers gave this location a miss. This is the seventh and last site to be tendered out in Lentor in the Government Land Sales (GLS) programme, where since 2021 six other sites have been sold and their respective projects launched. These earlier six sites comprise the current projects Lentor Modern, Lentor Hills Residences, Hillock Green, Lentor Mansion, Lentoria and the most recently launched Lentor Central Residences. Even though today’s tender close did not attract as much attention as the eight bidders in the Bayshore Road tender some two weeks ago, it appears that notwithstanding the six projects in the same neighbourhood, sales have been healthy. All six projects have each chalked up more than 70% take up or more, with some more than 90% sold. Evidently, given their respective market price points, Singaporean homebuyers are drawn to the Lentor area as a new non-landed private home enclave, and earlier notions of oversupply within the neighbourhood did not materialise.   

A top bid of S$429 million comes in within expectations, given the ample supply of about 3,500 new non-landed homes (inclusive of this seventh site) all cloistered in the Lentor area. With a top bid at a land rate of S$920 psf ppr, the selling prices at launch could possibly start from S$2,100 psf and average above S$2,200 psf depending on the design and finishes of the project. This pricing could be similar to Lentor Central Residences when it was launched last month in March 2025. Should all the other existing six projects in the area sell out by the time this Lentor Gardens site is launched for sale, possibly in a year’s time, a launch ready project (subject to the project's quality and pricing) on this site could benefit from spillover demand from prospective homebuyers still looking for a home in the Lentor area.

The Lentor Gardens site is situated in the Ang Mo Kio planning area, within walking distance to the Lentor MRT station. Potential homebuyers would be drawn 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 site is also about 1 km from CHIJ St Nicholas Girls School, with its appeal to parents of school-going children. Demand for this site would stem mainly from local homebuyers comprising HDB upgraders from nearby Ang Mo Kio, Yio Chu Kang and Serangoon housing estates. Furthermore, retirees and older residents currently living in the landed estates around Lentor and Yio Chu Kang Road, such as the adjacent Teachers’ Estate might consider downsizing their residences as their space requirements and priorities change, serving as a source of potential buyers for the last new condominium (at least for the foreseeable future) in this location.