GuocoLand & Hong Leong’s hold on Upper Thomson could be cemented by the site’s completion.
The land rate of Lentor Central is 8 per cent less. A joint venture comprising Hong Leong Holdings and GuocoLand, as well as China Construction (South Pacific Development Co) was awarded the site in September 2023 for S$435.2 millions or S$982 PSF ppr.
Although site-specific restrictions may have deterred certain players, winning Upper Thomson would give them a leg up in a developing area that is primarily a landed residential precinct.
The consortium is likely to be motivated by its defensive strategy in order to maintain a solid foothold outside of the Lentor neighborhood. It allows them to better manage their sales and pricing. GuocoLand, in addition to the subject site, is also developing 2,211 apartments in Lentor.
There are currently around 1,200 unsold units in different projects within the new Lentor Hills estate where five projects and six plots were launched.
The second site, located on Upper Thomson Road, is also on the market. Parcel A adjacent state land that is up for tender could yield 640 apartments, including 100 long stay serviced apartments.
Analysts estimate that Upper Thomson (Parcel B), based on the S$905 bid psf for the parcel, will launch between S$2,000-S$2,200 per sq ft.
If the project’s launch price is palatable to local homebuyers, it can appeal to those looking to upgrade HDB estates in Ang Mo Kio or Yio Chu Kang from landed homes.
The Upper Thomson Road (Parcel B), plot measures 32,023.7 square meters (sq m) and will produce 940 units.
The Essence, a 99 year leasehold condominium on Chong Kuo Road in the vicinity was launched in Chong Kuo Road in March 2019. The Essence has a median price of S$1,376 for all new sales from its launch to today. The development is built on land that was purchased in 2018 for S$43.95million or S$681 per square foot per person.
A sub-sale for an 818 square foot unit was completed in January, at a price of S$1.3 million ($1,638 per sq ft).
A single bid of S$780M or S$905psfppr is slightly below expectations, and 8 per cent lower than most recently sold Lentor parcel
The Upper Thomson area’s latest state-sponsored tender concluded with developers holding off on land sales due to the cautious market.
The site only attracted one bidder, a joint venture of GuocoLand with Hong Leong Holdings. Their offer was around S$780,000,000 (or S$904.60/square foot/per plot ratio).
The single offer was slightly below expectations as polled by Business Times prior to the closing of the tender on Thursday, April 4. The Business Times polled its readers before the tender closed on Thursday (Apr 4).
