Lentor’s New Condo Boom: A Supply Glut in the Making or Just Nice for Demand?

While it won’t happen overnight, Lentor will eventually shed its image as a quiet district in northeastern Singapore. Recent years have seen the release of multiple Government Land Sales (GLS) sites, which have drawn in developers. Between 2022 to 2024, at least five new residential projects were launched in Lentor, representing some 2,400 new private homes being brought to market.

Table 1: Past and upcoming new launches in Lentor

Source: ERAPro, ERA Research & Market Intelligence

This steady influx of new housing options, including the much-anticipated launch of Lentor Central Residences this year, highlights the area’s long-term prospects as a liveable location with both green spaces and modern amenities. Even so, the possibility of condo sales in Lentor reaching a saturation point was raised after Lentoria’s debut in March last year.

But is the new launch market in Lentor truly at its limit? Or is there still the potential for fresh inventory to draw interested buyers?

A timeline of new launches in Lentor

In September 2022, the Lentor neighbourhood saw its first launch in Lentor Modern – an integrated mixed-use development with 605 units by Guocoland, which achieved a highly successful take-up rate of 84% on its launch day.

Location of Lentor Central Residences and other new launches in the area. (Source: URA Space)

Following that, Lentor Hills Residences was launched in July 2023 nearly a year later. Jointly developed by Hong Leong Holdings, Guocoland and TID, the development sold 298 units (or approximately 50%) of its 598 units during its debut weekend.

Subsequently, Hillock Green (474 units) was launched four months later, followed by Lentoria (267 units) and Lentor Mansion (533 units) in March 2024. While Hillock Green and Lentor Mansion both saw take-up rates of 27.6% and 75% respectively, Lentoria saw a more measured response of nearly 20%.

These varied performances, along with slower reception at a number of more recent Lentor launches, raised concerns about buyer fatigue and market saturation within the area. However, this perspective might not hold true, as there are several reasons suggesting otherwise.

Why Lentor’s new launch market hasn’t reached its limit  

Reason #1: New launches in Lentor, both past and present, have seen strong take-up since their debut

Perhaps the most telling sign that oversupply concerns are unwarranted is the presently low stock of new non-landed private homes in Lentor. Among the five developments that have been launched thus far, Lentor Modern is completely sold out, with another two approaching 100% take-up, namely Lentor Hills Residences and Lentor Mansion.

Table 2: New launches in Lentor and units sold

Source: ERAPro as of 13 February 2025

Meanwhile, despite slower initial sales, both Hillock Green and Lentoria have made significant strides in their sales progress, with 85.9% and 70.8% of their units respectively sold as of 13 February 2025.

Moreover, as of 13 February 2025, 2,318 units or 93.6% of the 2,477 homes launched for sale across the five Lentor projects have already been taken up. Hence, with only a limited number of units left, Lentor’s market has sufficient room for future launches, which will also likely be sustained by the strong buyer demand and interest seen thus far.

Table 3: Breakdown of available inventory at Lentor new launches by room type

Source: ERAPro as of 13 February 2025

A closer look at available condo units in existing Lentor launches also reveals that one- and two-bedders are mostly sold out, with three- and four-bedroom homes making up a larger percentage of remaining inventory.

However, this observation does not suggest a lack of demand for three or four-bedders in Lentor. When looking at relevant unit totals across each development, it becomes clear that a significant portion has already been sold. For example, Lentoria’s 24 remaining three-bedroom units accounts for just 34% of the original supply.

Relating to this, slower sales for larger units can be attributed to buyer behaviour. Aspiring owner-occupiers, such as HDB upgraders, often delay buying their desired three- or four-bedroom units until closer to completion.

By timing their purchases this way, this group of buyers is able to move in faster, avoid paying rent in the interim, and potentially sidestep ABSD, making it a practical and more cost-effective path towards private homeownership.

Reason #2: Stock is low, not just in Lentor but also District 26

Examining the possibility of a supply glut in Lentor through the broader lens of District 26 and its inventory of non-landed private homes (excluding ECs) also reveals that the risk of oversupply is unlikely. With just 2,966 units available as of 4Q 2024, District 26 currently has the third-lowest inventory of non-landed private homes among local districts, thus supporting the view that supply in the area is still tight.

Chart 1: Stock of Non-Landed Private Homes (Excluding ECs) as of 4Q 2024

Source: URA (as of 13 February 2025), ERA Research and Market Intelligence

Reason #3: New homes in Lentor have been moving at a steady pace

Low inventory in Lentor and District 26 aside, yet another indication that Lentor isn’t at risk of oversupply is the steady transaction activity of various new launches in Lentor.

Barring exceptions, such as months coinciding with new project debuts or seasonal slowdowns, sales of new private homes in Lentor have maintained a steady rhythm.

Chart 2: Monthly sales of new non-landed private home units for Lentor projects

Source: URA (as of 13 Feb 2025), ERA Research and Market Intelligence

For instance, in 2024, following the launches of Lentoria and Lentor Mansion in March, overall monthly sales of new condos in Lentor hovered between 50 to 70 units. The only outliers were June and December, when buying activity typically slows down during the school holiday periods – a common trend in Singapore’s property market.

This consistency also suggests that there is genuine demand for new private homes in Lentor, even after the initial surge of excitement generated by new launches. Hence, with fresh inventory set to be introduced in the coming months, it is likely that both buyer demand and new homes sales in Lentor will keep up their momentum.

Why are homebuyers gravitating towards Lentor?

If the past sales performances of the above developments are anything to go by, Lentor is indeed shaping up to become a vibrant residential enclave, capable of drawing in today’s buyers. This naturally raises the question: why?

The answer lies mainly in Lentor’s location within Ang Mo Kio.

Considering its status as a mature estate, a significant portion of Ang Mo Kio’s housing stock consists of older properties, such as aging HDB flats from the 90’s and older condos built in the early 2000’s. Consequently, for aspiring HDB upgraders or landed property right-sizers looking for newer homes, Lentor represents a compelling opportunity of moving into a rejuvenated neighbourhood, while still being close to familiar amenities, schools and healthcare services.

Moreover, the promise of enhanced transport links, such as Lentor MRT station and the upcoming North-South Corridor, further elevates Lentor’s appeal in the eyes of homebuyers. This is in addition to Lentor’s existing connectivity to major arterial roads and expressways, such as the Central Expressway and Seletar Expressway, meaning that residents will enjoy even greater accessibility to the rest of Singapore in the future.

What can homebuyers look forward to in Lentor and District 26?  

Lentor Central Residences (Source: Guocoland, Hong Leong, and CSC Land)

Homebuyers keen on purchasing a new private condo in Lentor will be pleased to know that there will be at least one new project making its debut in the neighbourhood this year.

Located within the same residential cluster as its predecessors, Lentor Central Residences is the sixth and newest addition to the area’s diverse lineup of offerings. The 99-year leasehold development comprises of 477 units and shares many of the same locational attributes as nearby developments, like Hillock Green as well as a yet-to-be tendered site at Lentor Gardens.

Proximity to Lentor MRT station aside, Lentor Central Residences is also within reach of various recreational amenities. For instance, residents can easily access green spaces like Thomson Nature Park and sports facilities such as Yio Chu Kang Stadium & Sports Complex.

Additionally, the Lentor area is well-served by reputable schools, including Anderson Primary School, Presbyterian High School, and CHIJ St. Nicholas Girls’ School, making it ideal for families seeking convenience and suitable education options for their children.

Upcoming new launch at Upper Thomson Road (Source: URA)

Buyers exploring new options in District 26 can also consider the upcoming, but as-of-now unnamed condo project at Upper Thomson Road (Parcel B) estimated to launch in 2Q 2025. The 940-unit development, which will be jointly developed by GuocoLand and Hong Leong Holdings, represents a first-mover opportunity as it sits on the first land parcel to be released for high-rise residential development in the Springleaf precinct.

Could Lentor be at risk of an oversupply in new private homes in the future?

With a growing number of new launches in the area, concerns about a potential oversupply in Lentor might once again be raised down the road. However, for now, the consistent demand shown at new launches strongly suggests otherwise.

So long as future launches are adequately paced to meet current market demand, Lentor is well-positioned to maintain its mass appeal to a wide buyer audience – from HDB upgraders to families seeking new homes – without significant fear of excessive surplus.

Keen on knowing more about Lentor Central Residences or other exciting opportunities in the area? Reach out to one of our ERA Trusted Advisers today for expert insights and all the details you need to make an informed decision!

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