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Nicholas Mak

Condo sites at Clementi Ave 1 & Pine Grove launched to increase competition



Introduction


The Singapore government launched two 99-year leasehold residential development sites

for sale on 15 August 2023. The land parcels are part of the current Government Land Sale

(GLS) programme which consists of eight residential sites in the Confirmed List. Land

parcels in the Confirmed List will be released according to a schedule.

​Location

Clementi Avenue 1

Pine Grove (parcel B)

Site area

144,786 sq ft

269,519 sq ft

Plot ratio

3.5

2.1

Maximum Gross Floor Area (GFA)

506,754 sq ft

565,998 sq ft

Estimated number of units

490-520 units

560-570 units

Land tenure

99 years

99 years

The land parcel at Clementi Avenue 1 measures 144,786 sq ft. With a plot ratio of 3.5, it can

be developed into a condominium project with 490 to 520 units. It is located near two popular

high schools, namely Nan Hua High School and NUS High School of Mathematics and

Science, which will enhance its attractiveness to families with school-going children.

Nearby condominium projects with recent transacted units include The Clement Canopy and

the Ki Residences At Brookvale. The median transacted prices of The Clement Canopy and

the Ki Residences At Brookvale are $1,822 psf and $2,173 psf respectively.


Name of Condo

Location

Land Tenure

Total No. of Units in Development

Median price ($psf)

​The Clement Canopy

Clementi Avenue 1

99 years

505

$1,822

Ki Residences At Brookvale

Brookvale Drive

999 years

660

$2,173

The second land parcel released is Pine Grove (Parcel B). With a land area of 269,519 sq ft

and a plot ratio of 2.1, this development site could yield around 560 to 570 condominium

units. The site is located next to a recently launched condominium called Pinetree Hill, a

520-unit development which was launched in July 2023 at an average selling price of $2,460

psf.


Increasing competition


These two sites could be developed into two rather large condominium projects of fairly

similar sizes, yielding between 490 and 570 units. The two projects are located only 1.6 km

apart. The future condo projects developed on these two sites could be launched within

months of each other. Hence, their proximity to each other in terms of distance and launch

date would make them competitors.


It could be the government’s intension to increase the competition in the private housing

market in this location, so than developers of these two sites would not overprice their

developments.


These two condo projects could be launched in 2025.


Demand and estimated land price


After the launch of Pinetree Hill, there is no other upcoming major residential project in the

Clementi area to be launched in the next one year. Hence, there could be some pent-up

demand for private housing in the Clementi area. Despite the potential pent-up demand, the

supply of these two new condominium sites could keep private housing prices in the

Clementi area from rising significantly.


The top bid for the Pine Grove (Pacel B) site be up to $700 million, which would translate to

$1,236 per square foot per plot ratio (psf ppr). The tender for this site could draw 3 to 5 bids.


The site at Clementi Avenue 1 is more attractive as it is near to two popular schools and

nearer to the Clementi MRT station (at 880 metre) than the Pine Grove site (which is about

1.3 km away). Hence the Clementi Avenue 1 land parcel could attract more attention from

developers, leading to about 4 to 7 bids. The top bid for this site could be as high as $650

million or $1,283 psf ppr.


The tender for both sites will close on 7 November 2023.

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