Moderate interest seen for Lentor Gardens residential site: analysts
Lentor Central, meanwhile, may not be “triggered” soon.
The Lentor Gardens residential site for sale may see “moderate” interest, whilst the Lentor Central site may not be triggered soon according to analysts as recent state tender for sites in the area garnered fewer bids.
The URA released for sale the Lentor Gardens and Lentor Central under the second half Government Land Sales Programme. Lentor Gardens, under the confirmed list, and Lentor Central, under the reserve list can yield about 1,005 residential units in total.
OrangeTee & Tie CEO Steven Tan noted that the recent state tender for Lentor Central only garnered three bids for $1,105 psf per plot per ratio (ppr), and the Lentor Hills Road (PArcel B) only had two with the winning bid at $1,130 psf ppr, both drawing “fewer-than-expected” bids.
The Lentor Modern launch was successful after selling 846% of the project with a median price of $2,108 psf.
“We expect moderate interest for the current land sales while the reserve site may not be triggered soon. Developers may be mindful that six new developments will be launched in this area, including Lentor Gardens and Lentor Central (reserve list),” Tan said.
Tan added they expect around two to five bidders and a more conservative land bid of between $1,050 to $1,150 psf ppr for the Lentor Gardens plot, following the new cooling measures and growing uncertainties globally.
Similarly, Huttons said the Lentor Gardens will not see over five bidders with the top bid ranging from $1,050 and $1,150 psf ppr. It added that if the Lentor Gardens site is successfully sold, the Lentor precinct will have almost 2,500 units and the government could release for sale all 11 parcels in the next few years.
“While the Lentor precinct is shaping up as a private residential enclave with an increase in amenities, the risks are also perceived to be higher with at least three projects to be launched within the next 2 years,” it said.
It added that Reserve site at Lentor Central is “highly unlikely” to be triggered and could possibly be moved to the confirmed list in the first half of the GLS Programme in 2023, which is another risk for the developers.
Wong Siew Ying, head of Research and Content at PropNex Realty, said they expect the Lentor Gardens site to attract three to four bidders at about $519m to $544m or a land rate of $1,050 to $1,100 psf ppr.
She added that the reserve list at Lentor Central also has a low possibility of being triggered with the incoming ample home supply in the area.