GLS tender for Jalan Anak Bukit site to close tomorrow; 5 developers submit bidsThe 99-year leasehold residential site at Lentor Gardens drew just one bid from GuocoLand and Intrepid Investments (a subsidiary of Hong Leong Group). The joint venture partners submitted a bid of $486.8 million, which translates to a land rate of $985 psf per plot ratio (psf ppr). This is the first residential GLS tender to see only one bid since the tender for the Silat Avenue GLS site in 2018.

The two last residential GLS sites to be sold in Lentor were at Lentor Central and Lentor Hill (Parcel B) and were both awarded last September. Lentor Central was awarded to a consortium comprising China Communications Construction, Soilbuild Group Holdings and United Engineers, who submitted a bid of $481.03 million ($1,108 psf ppr). TID (a joint venture between Hong Leong Group and Mitsui Fudosan) was the top bidder for Lentor Hills (Parcel B) at $276.36 million ($1,130 psf ppr).

Prior to this, GLS site at Lentor Hills Road (Parcel A) was sold for $586.6 million ($1,060 psf ppr) in January 2022. GuocoLand, Hong Leong Holdings and TID (the joint venture between Hong Leong Holdings and Mitsui Fudosan) are expected to launch the 598-unit Lentor Hills Residences soon.

In September, GuocoLand launched the 605-unit Lentor Modern integrated development. A total of 84% of the units were sold on the launch weekend and the project saw an average price of $2,104 psf; it is currently 88% sold mark. GuocoLand purchased the GLS site for $784.1 million ($1,204 psf ppr).

Mark Yip, CEO of Huttons Asia, notes that bids have been on a downward trend since the first GLS site at Lentor was launched. He attributes this to the cloudy economic outlook amidst the risk of being slapped with Additional Buyer’s Stamp Duty if developers are unable to sell all units within five years.

Two other GLS sites at Lentor are available for sale under the 1H2023 GLS Programme. This includes a site at Lentor Central, which can yield 475 units, expected to launch for tender this month, and a 500-unit residential site at Lentor Gardens which is currently on the Reserved List.

Leonard Tay, head of research at Knight Frank Singapore, estimates that all seven residential sites in Lentor (the five that have now been sold and the two still available for sale) could potentially bring about some 3,500 new units and 11,000 new residents to the area.

The Lentor Gardens site is within walking distance of the Lentor MRT station, Thomson Nature Park, Yio Chu Kang Stadium and CHIJ St Nicholas Girls’ School, which should all be attractive features to potential homebuyers. Steven Tan, CEO of OrangeTee & Tie, believes that the eventual launch at the site could see units priced around $1,950 to $2,050 psf.