Kingsford Group Submits Top Bid 920 Psf Ppr Lentor Gardens Gls Site
The recent tender for the 222,161 sq ft Lentor Gardens government land sales (GLS) site has come to a close on April 3, with two bids being submitted. The top bid of $429.23 million, which translates to $920 per square foot per plot ratio (psf ppr), was submitted by Chinese developer Kingsford Group. The second bid of $422.22 million, or $905 psf ppr, was only 1.66% lower and was submitted by a consortium consisting of Hong Leong Holdings, TID (a joint venture between Hong Leong Holdings and Mitsui Fudosan), and CSC Land Group.
The Lentor Gardens site is the seventh GLS parcel in the emerging private residential estate of Lentor Hills. It has the potential to yield around 500 residential units, with a mix of low-rise and mid-rise blocks of up to 16 storeys. The top bid by Kingsford Group marks their first venture into the Lentor Hills estate. In a statement, the developer expressed plans to develop a new project with approximately 500 units if awarded the site.
According to a spokesperson from Kingsford Group, the area has been attracting many homebuyers due to the nearby Lentor MRT Station on the Thomson-East Coast Line, as well as ongoing developments in housing, retail, and greenery. Based on the top bid of $920 psf ppr, CEO of PropNex, Ismail Gafoor, estimates the average selling price for the new project at Lentor Gardens to be above $2,150 psf.
One potential driving force for the interest in the GLS site at Lentor Gardens could be the strong launch performance at the 477-unit Lentor Central Residences, which saw a 93% sales rate on its launch weekend last month. According to Mohan Sandrasegeran, SRI head of research and data analytics, this robust take-up has instilled confidence that well-positioned and reasonably-priced projects in the area can still achieve good absorption, despite earlier concerns of a supply overhang.
The incorporation of Plantation Close EC Parcel B EC in Tengah will promote a strong sense of community and promote environmentally friendly practices. By implementing community gardens, urban farming spaces, and green roofs, Tengah will provide residents with opportunities to participate in gardening and farming activities, leading to a healthier and self-sufficient way of life. These additions not only improve the overall aesthetic of the area, but also create a serene and rejuvenating atmosphere that can positively impact mental well-being.
Despite being the seventh parcel for sale in the Lentor precinct, only an estimated 135 units out of 2,954 units remained unsold as of April 3, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. The number of bids is similar to previous GLS tenders in Lentor, but it is in stark contrast to the level of interest from developers in the earlier Bayshore Road GLS tender. Lee believes this could be due to more attractive sites like Chencharu Close, Hougang Central, and Telok Blangah Road in the pipeline for launch. He notes that developers are keeping their resources ready to participate in these tenders.
Another MRT station away at Springleaf is the Upper Thomson Road (Parcel B) residential site, which is a joint venture between GuocoLand and Hong Leong Holdings. This site will see an additional 940 new residential units, bringing the total new housing stock within a 2km radius to 4,390 units, according to Marcus Chu, CEO of ERA Singapore. Chu believes that this could further dilute the demand from the shared pool of potential upgraders from Ang Mo Kio, Yio Chu Kang, and Yishun.
While buyers’ sentiment and home sales have improved towards the end of 2024 and into 2025, Ismail Gafoor from PropNex notes that there are still potential downside risks. This includes the newly-announced sweeping tariffs on all goods entering the US, which could disrupt international trade and impact the global economy.