GuocoLand has sold between S$1,856 and S$2,538 per square foot for the remaining 84%

GuocoLand has sold between S$1,856 and S$2,538 per square foot for the remaining 84% of Lentor Modern

Units with one and two bedrooms are completely sold out, and prices range from $1.07 million for a unit with one bedroom that is 527 square feet in size to $3.33 million for a home with four bedrooms that is 1,528 square feet in size.

Sep 18, 2022

During the launch weekend of the Lentor Modern project, GuocoLand was able to sell 508 out of a total of 605 units in just two days at prices ranging from S$1,856 to S$2,538 per square foot. This is an 84 percent sales rate (psf).

According to a statement released by GuocoLand on Sunday, the integrated mixed-use development located in the Lentor Hills estate in the northern part of Singapore reported sales at prices ranging from $1.07 million for a 527 square foot one-bedroom unit to $3.33 million for a 1,528 square foot four-bedroom unit (Sep 18).

Each of the 63 units with 1 bedroom and each of the 231 units with 2 bedrooms was purchased. In addition, 182 apartments, which accounts for more than 73% of the total number of three-bedroom units (248), as well as more than 50% of the total number of four-bedroom units (63), were sold.

The 99-year leasehold Lentor Modern is the largest of the new private residential condo developments that have been placed to market so far in this year, with a total of 605 units being made available for purchase.

According to Lee Sze Teck, senior director of research at Huttons Asia, "the amount of units sold on launch weekend makes (Lentor Modern) the best selling project in 2022." This statement was made in reference to Lentor Modern. "The one-bedroom and two-bedroom flats are the first to be sold out, showing purchasers' significant enthusiasm to get a first mover advantage in this brand new exclusive residential enclave. Buyers have also come to terms with the fact that prices of S$2,000 per square foot or greater would be the norm going ahead; as a result, they are not waiting.

In a statement released on Sunday, the Chief Executive Officer of GuocoLand, Cheng Hsing Yao, said that "Lentor Modern demonstrated once again our acumen to spot new locations with great potential, and our ability to introduce innovative and exceptional developments to anchor a new district identity."

Several residential developments are planned to be constructed in the Lentor neighbourhood by GuocoLand, which is a subsidiary of the Hong Leong Group of Malaysia and is owned by the Malaysian business magnate Quek Leng Chan, as well as by other Hong Leong family businesses.

At a governmental land procurement held in July 2021, GuocoLand was successful in securing the Lentor Central site, which is now being used for the construction of Lentor Modern. Its bid of S$784.1 million, or S$1,204 per square foot per plot ratio (psf ppr), was higher than the second-highest bid of S$1,152 psf ppr, which was submitted by a partnership consisting of Intrepid Investments, Hong Realty, and TID Residential. These three companies are all a part of the Hong Leong Group Singapore, which is led by Mr. Quek's Singaporean cousin Kwek Leng Beng.

A partnership between City Developments Ltd (CDL) and Hongkong Land affiliate MCL Land submitted the third-highest proposal, which came in at S$1,131 psf ppr. This bid was also submitted by organisations related to Hong Leong. The property and hotel operations of Hong Leong Group Singapore are handled through SGX-listed company CDL.

Property advisors who were there at the moment made the following observation: the winning offer was greater than anticipated, and it also surpassed the S$1,118 psf ppr winning bid that had been submitted for a plot in Ang Mo Kio Avenue 1 during an earlier state tender in the month of May.

However, during a state land procurement that ended only last week on September 13, only three offers were received for two plots that were offered adjacent to the Lentor MRT station. This result was far lower than what was expected. However, the top bids for the Lentor Central site came in at $1,108 psf ppr, which was in line with expectations. The top bid for the Lentor Hills Road Parcel B was $1,130 psf ppr. While Hong Leong-affiliated TID Residential emerged in first place for the Lentor Hills Road property, GuocoLand had made the third-highest offer for the Lentor Central tract.

At an earlier government tender held in January of this year, another Lentor Hills Road plot was sold to a joint venture between Intrepid Investments, GuocoLand, and TID Residential for the highest bid price of S$586.6 million, which is equivalent to S$1,060 psf ppr. On this land, a new community called Lentor Hills Residences is now being built.

This year, new private residential launches have been met with strong demand at record pricing levels, and S$2,000 psf is now considered the "new normal" for the price of private homes in suburban areas. On the first day that the Sky Eden@Bedok project was launched, Frasers Property was able to sell 118 apartments, which is equivalent to about 75 percent of the total available units, at an average price of approximately S$2,100 psf.

According to GuocoLand, at the inauguration of Lentor Modern over the weekend, around 92% of total customers were Singaporeans. The remaining 8% of buyers consisted of permanent residents and foreigners. According to the organisation, the buyer profiles consist mostly of owner-occupiers, with upgraders making up the bulk of the market.

Lentor Modern will have access to an integrated mall with a broad variety of retail and food and beverage options, in addition to a supermarket that is 12,000 square feet in size and a daycare centre that is 10,000 square feet in size.