CapitaLand’s development arm has obtained provisional permission to redevelop the JCube site, J’Den Condo creating the 40-storey residential and commercial J’Den Condo. Expected to launch in 2023, it will be connected to the Jurong East MRT station, Westgate and IMM Building.
A residential Government Land Sale (GLS) site has been launched for sale via tender at Lentor Central. The site measures 14,703.2 sq m and under the Confirmed List for the 1H2023 GLS Programme it can yield around 475 residential units, with a maximum gross floor area of 41,169 sq m.
The Lentor Central site is the sixth in the Lentor Hills estate to be launched for tender and if all six sites are sold, the Lentor precinct may see an estimated 2,943 units completed in the next four to five years. The first GLS site was awarded to GuocoLand for $784.1 million in July 2021 and the latest land parcel tendered in the estate was in Lentor Gardens, attracting just one bid from a joint venture between GuocoLand and Hong Leong Group with a bid of $486.8 million.
The tender for Lentor Central close at 12 noon on Sept 12. URA also released a residential site at Lentor Gardens, which is available for application under the Reserve List, with a leasehold tenure of 99 years, a 20,640.8 sq m site area and a maximum GFA of 42,346 sq m.
Considering the revised floor area definition rules set by URA, the impact on land price and selling price is something to consider. The harmonisation of GFA rules is likely to reduce the saleable area by at least 5%. With an ample upcoming supply in Lentor as well as the cautious market sentiment and reduced risk appetite, the likelihood of the Reserve List site in Lentor Gardens being triggered for sale is relatively low.
As for the Lentor Central site, the top bid is predicted to be between $434.3 million to $456.4 million. Besides these two sites, there are a number of existing and upcoming sites around the Lentor Central area.
Given the current market conditions as well as the revised GFA rules, it will be interesting to see the outcome of the Lentor Central land sale and if it will keep up with the land rates of the previous Lentor sites.
