Single Bid of S$780 Million Secures Lentor Mansion Site on Upper Thomson Road

Single Bid of S$780 Million Secures Lentor Mansion Site on Upper Thomson Road : Today, the Urban Redevelopment Authority (URA) revealed that the highly sought-after Upper Thomson Road (Parcel B) site has garnered substantial interest, culminating in a single bid worth S$780 million. This bid, masterminded by a joint venture between renowned developers GuocoLand and Hong Leong Holdings, stands as a testament to the site’s immense potential and strategic allure.

The offer, translating to S$904.60 per square foot per plot ratio (psf ppr), solidifies the commitment of GuocoLand and Hong Leong Holdings to capitalize on this prime real estate opportunity. Although the bid slightly underwhelmed initial industry forecasts, which projected a more competitive bidding landscape, it nonetheless underscores the confidence of these prominent developers in the project’s viability and profitability.

Spanning an expansive 32,023.7 square meters, the Upper Thomson Road plot boasts a maximum gross floor area of 80,060 square meters, earmarked for the creation of approximately 940 exclusive private residences. Situated in proximity to The Essence condominium, a benchmark in luxury living, the site holds immense promise for lucrative returns, given the prevailing market dynamics.

Of particular note is the site’s adjacency to the burgeoning Lentor Hills estate, a hotbed of development activities characterized by its robust market performance. Good examples of outstanding developments in the Lentor area, includes Lentoria, a beautiful unique development.

The significance of this development is further underscored by the recent sale of a Lentor Central site in September 2023, fetching S$435.2 million, and commanding a price of S$982 psf ppr. With median prices of new sales in the Lentor area ranging between S$2,109 psf and S$2,269 psf, the Upper Thomson Road project promises substantial returns on investment in line with prevailing market trends.

Moreover, the Urban Redevelopment Authority (URA) has mandated that the successful bidder integrate “biodiversity-sensitive urban design strategies” into the development plan, alongside the preservation of the former Seletar Institute’s conserved building. While these requirements may potentially impact development costs, they underscore the commitment to sustainable urban planning and heritage conservation.

In summary, the singular bid of S$780 million for the Lentor Mansion site on Upper Thomson Road encapsulates a pivotal moment in Singapore’s real estate landscape, signaling robust investor confidence and laying the foundation for a landmark development that harmoniously integrates luxury living, sustainability, and heritage preservation.

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