In the latest development in Singapore’s real estate landscape, a joint venture between MCL Land and CSC Land has secured the Clementi Avenue 1 Government Land Sale (GLS) site with a winning bid of $633.45 million. The consortium’s bid, at $1,250 per square foot per plot ratio (psf ppr) for the 99-year leasehold, 178,066 sq ft site, outpaced competitors, reflecting a 4.03% premium over the second-highest bid of $608.89 million.
The strategic choice of Clementi Avenue 1 is notable, as the site drew significant attention with six competitive bids, surpassing the interest in two other sites at Lorong 1 Toa Payoh and Pine Grove (Parcel B). Analysts attribute this preference to the site’s smaller gross floor area, resulting in a more conservative land cost outlay.
Industry experts, such as Leonard Tay from Knight Frank, emphasize the unique appeal of Clementi Avenue 1, given its proximity to established educational institutions like the National University of Singapore, New Town Secondary School, Nan Hua High School, NUS High School of Mathematics and Science and Singapore Polytechnic. This location, coupled with its proximity to business parks in Buona Vista, Jurong Lake District, and One-North, makes it an attractive choice for families and international students.
Market sentiment, as indicated by Justin Quek of OrangeTee & Tie, highlights healthy competition among developers, potentially driven by limited project launches in the Clementi area. Developers seem keen on tapping into the steady demand for private homes in this locale.
The success of nearby residential developments, including Clavon, KI Residences, and Parc Clematis, has further fueled the anticipation for the upcoming project on Clementi Avenue 1. Analysts predict a robust demand for approximately 500 residential units, with estimated selling prices ranging from $2,300 to $2,500 psf.
Clementi’s appeal extends to its proximity to business nodes, educational institutions, and the imminent fulfillment of HDB Minimum Occupation Period for around 1,500 flats in the Clementi and Queenstown precincts, indicating potential demand from HDB upgraders.
The joint venture’s successful bid for the Clementi Avenue 1 GLS site signifies a strategic move in response to evolving market conditions and underscores the enduring demand for well-located, quality residential developments in Singapore.
