Commentary on URA tender closing at Lentor Gardens (2)

By Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE

Developers displayed cautious selectiveness, with lukewarm participation observed at the close of today’s URA tender for the residential site, Lentor Gardens (2) (500 units). The site is the last of 7 sites launched in the Lentor estate with a cumulative supply of 3,454 units. 
 
The ample existing supply, coupled with more attractive upcoming sites under the GLS programme likely deterred developers who did not already have a stake in the prior awarded sites and launches.

Lentor Gardens (2)

The plot at Lentor Gardens (2) (500 units) drew 2 bids. The top bid price of $429.23 mil or $920 psf ppr submitted by a unit of Kingsford Group, was within our expectations. 
 
The land rate was just 1.7% higher than the second bidder, a consortium between Hong Leong Holdings, Mitsui Fudosan Co. and China Construction (South Pacific) Development Co. which have stakes in prior Lentor sites and were likely solidifying their foothold in the location. 
 
At $920 psf ppr, this is the lowest land rate compared to previously awarded Lentor sites, below the floor of $982 psf ppr for Lentor Central (3) awarded in Sep 2023 and 23.6% lower than the record of $1,204 psf ppr posted by the maiden mixed-use site Lentor Central. Market sentiment was better when Lentor Central closed in Apr 2021, prior to multiple rounds of cooling measures and the parcel received 9 bidders then. 
 
A list of the prior Lentor sites, winning bids and top bidders in ascending order based on award date are as follow: 

• Lentor Central: 9 bids awarded for $1,204 psf ppr in Jul 2021 to GuocoLand. Launched as mixed-use development Lentor Modern (605 units) in Sep 2022. 
 
• Lentor Hills Parcel A: 4 bids awarded for $1,060 psf ppr in Jan 2022 to a consortium between Hong Leong/GuocoLand/Mitsui Fudosan Co. Launched as Lentor Hills Residences (598 units) in Jul 2023. 
 
• Lentor Central (2): 3 bids awarded for $1,108 psf ppr in Sep 2022 to a consortium between China Communications Construction Co./Soilbuild Group/Yanlord Land. Launched as Hillock Green (474 units) in Nov 2023. 
 
• Lentor Hills Parcel B: 2 bids awarded for $1,130 psf ppr in Sep 2022 to a JV between Hong Leong Group/Mitsui Fudosan Co. Launched as Lentoria (267 units) in Mar 2024. 
 
• Lentor Gardens: 1 bid awarded for $985 psf ppr in Apr 2023 to a JV between Guocoland/Hong Leong Group launched as Lentor Mansion (533 units) in Mar 2024. 
 
• Lentor Central (3): 2 bids awarded for $982 psf ppr in Sep 2023 to a consortium between Hong Leong/ GuocoLand/China Construction (South Pacific) Development Co. Now Lentor Central Residences (477 units) launched over the 8 Mar 2025 weekend reportedly sold 93% of total units at an average price of $2,200 psf. 

Lentor Gardens (2) likely saw muted interest likely due to its location furthest from the upcoming Lentor MRT relative to the other Lentor sites. The popular CHIJ St. Nicholas Girls’ School also does not fall in a 1km radius from the plot and there is potential competition from unsold inventory at the existing Lentor launches. We do note however that take-up has been robust in the Lentor area despite the ample supply. Based on realis caveats as of 3 Apr 2025, 94% of all units from the 6 existing Lentor projects, which were launched gradually over the last 3 years have been sold. This strong performance could have encouraged Kingsford to participate in today’s tender. Table 1: Performance of existing Lentor launches

Project name	Launch month	Developer	Total units	Units Sold	% of project sold to date	Median Price ($psf)	Median Quantum	Median Area	Units Remaining
Lentor Modern (mixed-use)	Sep-22	GuocoLand	605	605	100%	$2,108	$1,873,080	969 sf	0
Lentor Hills Residences	Jul-23	Hong Leong/GuocoLand/Mitsui Fudosan Co.	598	595	99%	$2,115	$1,846,000	958 sf	3
Hillock Green	Nov-23	China Communications Construction Co./Soilbuild Group/Yanlord Land	474	418	88%	$2,157	$1,915,000	904 sf	56
Lentoria	Mar-24	Hong Leong Group/Mitsui Fudosan Co.	267	194	73%	$2,187	$1,633,000	732 sf	73
Lentor Mansion*	Mar-24	GuocoLand/Hong Leong Holdings	533	504	95%	$2,264	$1,802,500	786 sf	29
Lentor Central Residences*	Mar-25	Hong Leong Holdings, GuocoLand & China Construction (South Pacific) Development Co.	477	456	96%	$2,210	$1,817,500	786 sf	21
Total	-	-	2,954	2,772	94%	-	-	-	182

Source: CBRE Research, URA
*Projects following the revised Harmonisation of Floor Area Definitions. 

At this top bid price of $920 psf ppr, we expect the future average launch price of this Lentor Gardens (2) project to be around $2,100-2,200 psf, marginally lower than $2,200 psf at Lentor Central Residences.