Property Herald: Lentor Gardens Residences launch in backdrop of rising property speculations

Introduction

Lentor Gardens Residences is the latest condominium development to be launched in the Lentor housing estate. Located in the northeast region and within Yio Chu Kang, the 99-year leasehold condominium consists of 496 non-landed units, 3 strata terrace houses and 3 shop units, as well as a, early childhood care centre. The units in Lentor Gardens Residences are open for sale to the public since 18 July.

Source: Mogul.sg Research, URA

Healthy housing demand

Although Lentor Gardens Residences is the seventh residential development in the Lentor area to be launched in the past four years, the healthy demand at the launch illustrated the strong vote of confidence among homebuyers for private housing in this location.

At the end of the launch weekend, 270 residential units and the three shop units had found buyers, reflecting an overall take-up rate of 54.4 percent of the 502 strata units. The average transacted prices of the condominium units and shop units are $2,350 psf and $2,550 psf respectively.

Reasons for strong demand

The strong demand for the units in Lentor Gardens Residences is not surprising.

Firstly, the sales at Lentor Gardens Residences is partly fuelled by pent-up demand as this is the first private residential project to be launched in the past two months. Property developers held back their project launches after the introduction of the Executive Condominium cooling measures in early May and the lull period due to the June school holidays.

Secondly, Lentor Gardens Residences is located within a 2-minute walk to the Lentor MRT station which is part of the Thomson-East Coast Line. The close proximity to the MRT station providing easy accessibility to public transport for the residents.

Thirdly, it is situated in a matured private housing estate consisting of older condominium developments and a landed housing estate. The demand for the new condominium units could come from the older property owners and their adult children living in this area.

Fourthly, the opening of Lentor Modern retail mall, which is situated within a minute’s walk from Lentor Gardens Residences, provides daily conveniences, retail, food and beverages for the residents.

The fifth reason for the strong housing demand is the proximity to popular schools such as CHIJ St Nicholas Girls' School which is less than 2 km from the subject property.

Drawback

One drawback facing buyers of properties in Lentor Gardens Residences is that by the time this project obtained its Temporary Occupation Permit (TOP) around 2029, six earlier residential developments in the immediate vicinity will be completed. The unit owners of Lentor Gardens Residences will face fierce competition from hundreds of similar-age resale units and rental listings that could lead to lower rental returns.

Lowest condo land price for Lentor area

The developer of Lentor Gardens Residences acquired the site at the lowest land rate of $920 psf per plot ratio, compared to the other seven Lentor residential land parcels sold by the government in the past five years.

The low land price of this project provides the developer with the flexibility to launch Lentor Gardens Residences at prices that could result in healthy sales.

Table 1: New residential projects at Lentor

Name of Development	Land price ($psf ppr)	Project Launch Date	Total housing units	Percentage of total housing units sold during launch	Median price in month of project launch (S$psf)
Lentor Modern	$1,204	Sep-22	605	84.0%	$2,108
Lentor Hills Residences	$1,060	Jul-23	598	50.0%	$2,108
Hillock Green	$1,108	Nov-23	474	27.6%	$2,110
Lentoria	$1,130	Mar-24	267	17.6%	$2,129
Lentor Mansion	$985	Mar-24	533	75.0%	$2,269
Lentor Central Residences	$982	Mar-25	477	93.3%	$2,213
Lentor Gardens Residences	$920	Jul-26	499	55%	$2,350*

Source: Mogul.sg Research

Note: Average price of condominium units in Lentor Gardens Residences is $2,350 psf