Developers adopt a cautious approach in the land tenders of Woodlands, Lentor residential sites

Hong Leong Holdings (South Pacific), GuocoLand Development Co. and China Construction South Pacific Development Co. jointly submitted the two bids for the Lentor Central plot at the closing of the tender on Sep 12. The highest bid of S$435.2M, or S$982 PSF ppr, came from the joint venture.

Six bids came in for a parcel of land along Champions Way in Woodlands. However, the bids received were well below expectations. Two bids were made at Lentor Close. That’s one more than on the latest site offered in the area but fewer than nine in 2021, the first time the state released land in Lentor Hills.

After several waves of cooling and steeply higher financing rates, the bids on two 99-year leasehold housing sites reflect a markedly less risk-taking attitude among developers.

Huttons Senior director of data analytics Lee Sze Teck has highlighted the growing risks for developers. This includes high interest and cost rates as well a reduced saleable floor space for non landed residential projects because of the changes in definitions.

Wong Siew Ying (head of research and contents at PropNex Realty) noted that a tender for a executive condominium site in Tengah on Jun 27 had nine bids with a record land price of S$703 psf ppr.

City Developments Limited was the winning bidder for the Woodlands parcel. The highest bidder was City Developments Limited (CDL), with a S$272.3M or S$835psfppr.

CDL group CEO Sherman Kwek made the following statement after the results of this tender were announced: “Following Singapore’s successful launch of a number of projects, our list of completed projects is decreasing.” This site is a great way to replenish our landbank, and maintain a stable pipeline of launches.

CDL plans four 11 storey blocks, totalling 350 private houses. A basement parking lot and an Early Childhood Development Centre are also planned.

GuocoLand’s Lentor Modern with 605 units sold 84 percent of its units over the launch weekend at prices between S$1,856-S$2,538/psf. According to URA figures, 49 units (8.1%) or just 8% of all the remaining units will be unsold by July 2023.

Lentor Hills Residences mixed-use integrated development saw a cooler reaction in July. This was after a round of cooling measures. Hong Leong GuocoLand TID project has sold approximately half of the 598 units in its first weekend. The average price was S$2,080.

GuocoLand acquired the site at S$784.1million, or S$1,204/sf/ppr/year in July 2021.

Analysts expect that Champions Way, given the top bidder on the site, could launch at a price between S$1,750-S$1,950/sq.

This bid met expectations and was a bit lower than GuocoLand’s and Hong Leong’s S$985 psf/ppr, which they offered in April as the sole offer for the last parcel at Lentor Hills. In terms of psf, this was the lowest bid among the five Lentor Hills Estate parcels sold since 2021.

Lentor Close will have a launch price ranging from S$1,950 to S$2,200.

All parties are welcome to make an appointment to view the showflat of Grand Dunman Singapore.

Hong Leong spokesman says: “If the project is awarded, we intend to build a high-rise residential development that will have 475 private units. Residents can enjoy the convenience of nearby amenities as well as the Lentor Metro station. This will increase the appeal of the property to potential buyers.”

China Communications Construction Company sold a Lentor Central property to Soilbuild Group in September 2022. Yanlord Land Group also purchased the site for S$1,108. TID Residential was awarded the Lentor Hills Road plot (Parcel B). The price per square foot for this parcel is S$1,130.