Land Vision | Lentor Gardens GLS: Exploring the Potential of Lentor Gardens: Will it be a power house in Ang Mo Kio’s Next Prime District?

Under the 2H2022 Government Land Sale program, the Lentor Precinct is shaping up to be a residential enclave, securing developments in 4 land sites, with the Lentor Gardens tender closing in on developers. Strategically located within walking distance of Thomson-East Coast Line’s Lentor MRT station and in the heartlands of the mature Ang Mo Kio estate, the 99-year leasehold site covers a site area of 21,687m2 with a maximum Gross Floor Area of 45,920m2 and Gross Plot Ratio of 2.1. The REA Developer Suite is proud to bring you the latest analysis of Lentor Gardens, including our estimate of the winning land bid price, the best building configurations, and our early stance on the development. 

The Estimated Winning Land Bid Price 

Land sites Lentor Modern, Lentor Central, and Lentor Hills Road Parcels A & B are in close proximity to Lentor Gardens and managed to fetch competitive winning bid prices of about S$1,100 to S$1,200 per sq ft per plot ratio (psf ppr). Taking this into account, REA Developer Suite estimates the winning bid for Lentor Gardens to be at S$1,113/psf, with land bidding price of $550 mil.  

This is based on our proprietary prediction model backed by land sales data, parameters of land site and other key factors like surrounding amenities, and demand and price index. With the highly competitive land developments neighbouring Lentor Gardens and seemingly high influx of properties in the Lentor precinct, REA Developer Suite predicts that developers might potentially adopt a more conservative land bid attitude. This is due to perceived higher levels of risk associated with multiple development projects over the next 2 years. Furthermore, high competition and rising land price are expected for GLSs within the Non-Central Region with a forecasted GLS index trend of 4.51 for 2023 for residential developments. These factors potentially justify a higher figure for the estimated win bid price of Lentor Gardens based on the data range provided by other residential developments in the Lentor precinct.  

The Best Building Configuration 

In the pursuit of maximising revenue, developers should strive to achieve such a feat in the most efficient way possible, identifying the optimum configuration of developing the building that meets both the developers’ preferences and market demand. REA Developer Suite’s Best-use building feature aims to streamline this process of optimisation by experimenting with different permutated configurations of building designs and utility to produce a figure that achieves the maximum revenue possible in the most efficient manner. Based on our model, we have identified the optimal number of units to be 515, generating a maximum potential revenue of $960 mil. This estimation considers the principal pricing and configuration factors ranging from land utility, facilities configuration to demand modelling over periods. The bigger question is, how would the breakdown of the 515 units look like?  

Stance 

Lentor Gardens is set to become a key part of the Ang Mo Kio neighbourhood's transformation into a precinct where "Familiar Meets the Future," as envisioned by the Urban Redevelopment Authority. Following these principles, Lentor Gardens and the surrounding developments will seamlessly integrate with the existing flora and terrain, while improving accessibility through the addition of parks, pedestrian walkways, cycling paths, and commercial amenities. The development will modernise the area while preserving its historic charm, catering to the needs of all residents and maintaining the cultural identity of the community. 

This approach ensures that the Lentor precinct remains vibrant and relevant to all residents, making it a valuable addition to the neighbourhood. Although the Lentor precinct will see numerous developments, it remains unclear whether the influx of new properties might exceed the demand. However, we believe that the demand for quality properties is ever-present and that Lentor Gardens will remain an attractive development for residents looking to move into this mature estate. This belief is supported by firstly, the success of Lentor Modern, which sold 84% of its units on its launch weekend. Secondly, the Urban Redevelopment Authority (URA) recently released data showing that 391 new private residential units were sold in January, which is a 130% increase from December's volume of 170 units. However, January's sales volume was still down 42.8% from the 684 new units sold in the same month in 2022. Even in the face of government cooling measures implemented in September 2022, the demand for private residential sales remains robust and shows no signs of slowing down. Lastly, the integration of convenience at Lentor Modern will unlock a new level of "across-the-street" accessibility for residents, which has been lacking in the Lentor district. 

Contact us corporate@realestateanalytics.sg to find out more details on Lentor Gardens Land Analysis! 

REA Developer Suite 

The REA Developer Suite is a game-changing solution that will effectively disrupt the traditional property development process. 

Leveraging on REA’s vast data and technological capabilities, the REA Developer Suite has been built to do the market research for you. We will serve as a guide for developers to drive efficiencies and margins across the end-to-end life cycle of business activity, from land acquisition to post-launch sale strategies, by providing real estate development recommendations at every stage from our AI-Powered Analysis. 

Reference:  

https://www.lentorcentral.com.sg/ang-mo-kio-ura-master-plan/ 

https://www.edgeprop.sg/property-news/ura-releases-two-more-residential-gls-sites-lentor 

https://stackedhomes.com/editorial/why-the-lentor-and-tampines-gls-sites-are-the-ones-to-watch-this-year/#gs.qclrwi 

https://sghomeinvestment.com/lentor-and-bukit-batok-government-land-sale-analysis/ 

https://www.propertylimbrothers.com/why-did-guocolands-lentor-modern-sold-over-84-on-launch-weekend/ 

https://propertyreviewsg.com/lentor-central-gls-residential-plot-3/