GuocoLand’s and Hong Leong’s control of the area could be solidified if Upper Thomson is clinched.
On Upper Thomson Road there is a secondary site for sale. Parcel A the adjacent state plot that is currently being offered for tender has the potential to yield 640 residential units, which includes 100 long-stay services apartments.
Analysts anticipate that Upper Thomson Project (Parcel B) will launch at between S$2,000 – S$2,200 PSF, given the S$905 Sq Ft ppr bid for the site.
If this project has a palatable launch price, it could be attractive for local homebuyers seeking to downgrade to landed housing around Springleaf, and HDB upgraders from Ang Mo Kio Estate and Yio Chu Kang.
The winning bid was S$780 million, or S$905/sqft ppr. This is 8 per cent less than expected and a shade below the last sold Lentor lot.
The Upper Thomson Area’s last state tender has closed. This shows that developers are not selling land because the market is cautious.
The site only received one bid, from a joint partnership between GuocoLand Holdings & Hong Leong Holdings. They offered S$780million or S$904.60per square foot per plot (psfppr).
The bid came in slightly lower than the Business Times survey conducted before Thursday’s (Apr. 4). Consultants predicted the plot would receive three to four bids. The highest bid was between S$1,000 psf and S$1,100.
The land price is also 8% lower than Lentor Central. In 2023 the site will be awarded to a Hong Leong Holdings joint venture with GuocoLand & China Construction Development Co. for S$435.2million or S$982ppr per sqf.
Even though site-specific needs may have put off some potential buyers, winning the Upper Thomson parcel would give a jump start in a rapidly developing area that is primarily made up of landed housing.
The consortium’s participation in tenders is likely driven primarily by its defensive approach to maintaining a strong presence beyond the Lentor neighbourhood. This gives them the opportunity to better control sales and pricing. GuocoLand will develop 2,211 housing units in Lentor, including this project.
In the Lentor Hills new estate, six plots of land have been sold to date and five new projects have been launched.
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The Upper Thomson Road plot (Parcel B), which spans 32.023.7 square metres, will yield 940 residential units.
The Essence condominium with 99-year leasehold in Chong Kuo Road opened its doors in March 2019, just a few meters away. The Essence’s new sales median price is S$1,376/sqft. The development was built in 2018 on a land parcel that cost S$43.95million, or S$681psfpr.
The latest transaction, a “sub-sale”, was for an 818 sq. ft. unit that changed hands at S$1.3m (S$1,638psf) in January.
