2 new GLS sites in Lentor area to sell for $1,050 to $1,100 psf ppr each
Property experts expect the sites to attract 3 to 10 bidders.
Two residential sites in the Lentor area launched for tender by the Urban Development Authority (URA) are expected to receive bids amounting from $1,050 to $1,100 per square foot per plot ratio (psf ppr) for each site, according to several property experts.
In terms of the number of bids, experts from Huttons and OrangeTee believe the two sites located at Lentor Hills (Parcel B) and Lentor Central could attract three to five, and seven to 10 bidders each, respectively.
PropNex, meanwhile, had separate estimates for the two sites.
For Parcel B, PropNex sees five to six bidders and a top bid of $244.6m to $269m or a land rate of $1,000 to $1,100 psf ppr.
Though PropNex sees a lower number of bidders for Lentor Central at four to five, its top bid estimate for the site is higher than Parcel B's at $455.8m to $477.6m or a land rate of $1,050 to $1,100 psf ppr.
If sold, PropNex said the Lentor Central and Lentor Hills sites can yield a total of 735 residential units in the area.
With 1,200 units from two previous sites launched in Lentor namely Lentor Modern and Parcel A, Huttons said the total number of new homes in the area will be 1,935.
Given the amply supply in the area, Huttons believe that interest in the two newly launched GLS sites will be "lukewarm."
"In the face of increased risks from the cooling measures and rising construction costs, developers may not want to buy land in an area where there is ample supply," Huttons commented, adding that developers might turn to Pine Grove (parcel A) site or the en bloc market instead.
PropNex had a similar insight saying that whilst developers will be keen on the new sites, they will be "mindful of two other nearby plots that have been sold recently and maybe more judicious with their bids."