The Lentor Central GLS site has been launched for sale via tender with a leasehold tenure of 99 years. It has a 14,703.2 sq m site area and can yield a maximum of 475 residential units, with a GFA of 41,169 sq m. It is part of the 4,090 residential units to be made available via the Confirmed List of the 1H2023 GLS programme.

The Singapore Urban Redevelopment Authority (URA) has released a residential Government Land Sale (GLS) site at Lentor Central for sale via tender and another site at Lentor Gardens for application under the Reserve List. Located within the Lentor Hills estate, both sites have a 99 year leasehold tenure and can yield nearly 1,000 residential units combined.

The Lentor Central site has a 14,703.2 sq m area and can generate up to 475 residential units with a maximum gross floor area (GFA) of 41,169 sq m. This is part of the 4,090 residential units to be made available in the Confirmed List of the 1H2023 GLS programme, which is an increase of 17% from 2H2022.

Meanwhile, the Lentor Gardens site has a 20,640.8 sq m area and can produce 500 residential units with a maximum GFA of 42,346 sq m. The tender for the Lentor Central site will close at 12 noon on Sept 12.

GuocoLand has already secured a GLS site in the Lentor Hills estate for $784.1 million or $1,204 psf per plot ratio (psf ppr) in July 2021. The site was developed as the mixed development Lentor Modern in September 2022, with 84% of its 605 units transacted at launch.

The most recent GLS land parcel tendered in the estate was in Lentor Gardens. The tender, which closed on April 4, received only one bid from a joint venture between GuocoLand and Hong Leong Group. Their bid was $486.8 million ($985 psf ppr).

HDB’s Altura EC public auction win of Altura EC project at Bukit Batok West Avenue 8 yields 375 residential units, near MRT station and multiple schools, with record-breaking bid of $266 million.

From research conducted by Huttons Asia, it was observed that the bid may have been significantly lower than the land rates of previous Lentor sites due to the harmonisation of floor area definitions. Announced by the URA in a circular last September, the revised definitions will take effect from June 1, 2021.

These changes incorporate all strata areas as gross floor area, matching the Master Plan plot ratio for the site. This could in turn reduce the total saleable area for the condo project as outlined by PropNex Realty’s Head of Research and Content, Wong Siew Ying.

Huttons’ Senior Director of Research, Lee Sze Teck, agreed and believes that the significant upcoming supply of 2,943 units in the Lentor precinct within the next four-five years is also a contributing factor.

Wong predicts that the Lentor Central GLS site may attract one to two bidders, with its top bid ranging between $434.3 million to $456.4 million (or between $980 to $1,030 psf ppr). However, she views the likelihood of the Lentor Gardens site being triggered for sale as “relatively low”, taking into account market sentiment and reduced risk appetite.

Lee expects Lentor Central to receive one to three bidders, with the top bid expected to be between $950 to $1,050 psf ppr. He also believes there is a low chance of the Lentor Gardens site being triggered for sale.

The release of the GLS sites in the Lentor Hills estate represent overarching trends in Singapore’s residential market. Ready supply and new regulations are shaping the market and are set to continue to do so in the coming years.

Both industrial and residential GLS sites are also being offered in other parts of Singapore, such as a detached house on Holland Road on the market for $8.5 million, an industrial development at Loyang Drive for sale at $25 million and a pair of freehold shophouses at the Kampong Glam conservation area for sale.

Overall, Singapore is experiencing an increase in available housing options and these GLS sites will be part of the growing residential landscape in the near future.