GuocoLand may cement control over area by securing Thomson

The Upper Thomson Area’s last state tender showed a cautious market as developers held off on land sales.

The site only received one bid, from a joint partnership between GuocoLand Holdings & Hong Leong Holdings. They offered S$780 Million or S$904.60 Per Square Foot per Plot Ratio (psfppr).

The Business Times polled The Business Times to find out what the average bidder was expecting before the deadline of Thursday (April 4). Consultants were expecting the plot to receive three to four bids.

The land rates are 8 percent less than Lentor Central. The site, located in the South Pacific region of Singapore, was awarded on September 20, 2023 to Hong Leong Holdings (HHL), GuocoLand Development Co and China Construction Development Co.

Property experts say that, while site-specific criteria may have put off some bidders, winning the Upper Thomson lot would give them an edge in a rapidly developing area that is dominated by landed housing.

The consortium’s participation in tenders is likely driven primarily by its defensive strategies to maintain a solid foothold within the Lentor neighbourhood and beyond. This gives them the opportunity to better control sales and pricing. GuocoLand will develop 2,211 housing units in Lentor, including this particular site.

Reseacher noted existing supply is 1,200 unsold units in various projects of the new Lentor Hills, where six parcels have already been sold and five project launched.

Another site is on offer on Upper Thomson Road. This adjacent state land plot is currently being put up for auction and can produce 640 housing units, including 100 apartments for long-term stay.

Analysts anticipate that Upper Thomson Project (Parcel B), with a bid of S$905psfppr for this site, will cost between S$2,000psf and S$2,200psf.

19 Nassim showflat is available for viewing now.

Analysts said that if there is a reasonable price for the project, it will be attractive to both local homebuyers from landed estates in the Springleaf region, as also to HDB upgraders from the Ang Mo Kio Estate and Yio Chu Kang.

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. The development was built in 2018 on a land parcel that cost S$43.95M, or S$681 PSF ppr.

The most recent sale was an 818 square feet apartment that changed hands for S$1.3m (or S$1,638/sqft) in January.

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