Why Lentor Mansion did ‘exceptionally well’ despite buyers’ price sensitivity

The development sold 75% of its units during its weekend launch.

Lentor Mansion’s starting prices contributed to the development’s “exceptionally well” performance during its weekend launch, said a real estate expert.

“In a market where ‘quantum-play’ holds sway and buyers are generally price sensitive, the starting prices at Lentor Mansion are comparatively lower than that of other projects in the vicinity, and that has stirred more interest among buyers,” PropNex said.

“For instance, the price for two-bedroom units at Lentor Mansion starts from $1.149m compared with a range of $1.2m to $1.4m at the other existing Lentor projects. Meanwhile, the pricing of 3-bedders at Lentor Mansion starts from about $1.7m versus around $1.8m at the other nearby launches,” PropNex said.

On an average transacted unit price ($PSF) basis, however, prices of Lentor Mansion were “a touch higher “ at more than $2,200 psf, compared with around $2,100 psf at the other projects in the Lentor area. 

“This could be due to rising construction costs and the new harmonisation of gross floor area (GFA) guidelines. Lentor Mansion is the first private residential project to be launched under the new GFA harmonisation guidelines, where developers have to sell units based on the actual liveable space – i.e. the air-con ledge space is not built into the selling price,” PropNex explained.

With 400 of 533 (75%) units sold, Lentor Mansion has become the best-selling project in 2024 in terms of number of units sold, said Huttons.

“It is the second best-selling project in the Lentor precinct after Lentor Modern, which sold 84% of 605 units on the first day,” added Huttons.

Other attributes which attracted buyers to the development include its “fairly sizeable development with a good range of facilities, as well as open spaces," said PropNex.

“It is also close to the Lentor MRT station and within 1 km from the popular CHIJ St. Nicholas Girls’ School,” PropNex added.

Huttons said Lentor Mansion’s “strong set of sales” is a testament that “buyers appreciate the strong placemaking emphasis the developer has placed on the Lentor precinct and the growing appeal of Lentor as a private residential enclave.”

“Buyers may have been holding back on buying till they can compare across all the projects in Lentor. The efficient and compact layout of the units in Lentor Mansion attracted buyers. This also led to a more attractive quantum, easing the entry threshold for first-time buyers and HDB upgraders. Huttons Data Analytics estimates 75% of the units sold are priced below $2.0m, which is the sweet spot entry price for first-time buyers and HDB upgraders,” Huttons said.

PropNex hopes the robust sales take-up at the GuocoLand development will help lift sentiment.

“The buzz could also help to draw more interest to the Lentor area in general and may spur sales at other launches there,” said PropNex.