SINGAPORE, 12 September 2023 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on URA’s announcement on the tender closing for Lentor Central and Champions Way.
The Champions Way site saw considerably more interest with a total of 6 bids, given that the site benefits from the growth of the Woodlands Regional Centre and captive upgrading demand from residents in the Woodlands housing estates. The Woodlands Regional Centre is the largest economic hub in the North Region and will serve as a strategic centre for the Northern Agri-Tech and Food Corridor. Pent-up housing demand is also expected, given that the last private project launch of Parc Rosewood in Woodlands, was over a decade ago in 2012. Residents will benefit from a short walk to the Woodlands South MRT station on the Thomson-East Coast Line, while Causeway Point is just one station away on the same line. Other amenities in the vicinity include the Singapore Sports School, as well as the upcoming Woodlands Health Campus.
The top bid of S$903.9 psf ppr by CDL is a considerable 8.3% higher than the second-highest bid. A difference of 13.4% separates the second and third highest bid. The wide dispersion between the bids point to an inflection in the property market, with a wide range of expectations held by market players. The bullish bid by CDL is likely attributed to the impending completion of the Singapore-Johor Rapid Transit System (RTS), which will dramatically improve connectivity between Singapore and Johor. Prices of homes in Woodlands could be re-rated when the RTS is completed in 2026.
As the sixth site offered in the Lentor precinct by the government, the Lentor Central site saw a muted bidding response from two developers. The six sites in the Lentor precinct can cumulatively yield about 3,000 homes. However, developer fatigue and caution appear to have set in, as there are still three awarded projects that could be launched in the precinct over the next 12-18 months. The top bid of S$982 psf ppr was submitted by Intrepid Investments (a subsidiary of Hong Leong Holdings) , GuocoLand and CSC Land Group. Given that the Lentor Gardens site was awarded to the sole bid by GuocoLand and Intrepid Investments in April this year for S$985 psf ppr, market players will likely exercise restraint by submitting lower bids for the Lentor Central site as the supply pressure mounts.
The other Lentor Central site bid was submitted by Frasers at S$927 psf and is about 5.9% lower than the price paid for the Lentor Gardens site in April. Hong Leong and GuocoLand have won four sites in the Lentor precinct, either or a single or joint basis, and the above market bid reflects a strong desire to fend off competition and maintain their pricing power. Amenities near the site include the upcoming mixed-use development at Lentor Modern which could provide F&B and retail options, a childcare centre and a supermarket for future residents. The site is in the new Lentor Hills estate and within walking distance to the Lentor MRT station on the Thomson-East Coast line.
For further information, please contact:
Seah Li Ching (Ms)
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