Clementi Avenue 1 GLS Sees Record $1,250 psf ppr bid from MCL Land and CSC Land JV
The recent closure of the government land sale (GLS) tender for three private residential sites in Singapore has brought attention to the Clementi Avenue 1 GLS site, which saw the highest number of bids among the three locations.
The winning bid for the 99-year leasehold property, covering 178,066 square feet, reached $633.45 million (or $1,250 per square foot per plot ratio) and came from a consortium consisting of two real estate entities, CSC Land Group and MCL Land.
Notably, this bid exceeded the second-highest offer by 4.03 per cent, amounting to $608.89 million.
Analysts attribute the appeal of the Clementi Avenue 1 site to its comparatively smaller gross floor area, leading to a more restrained land cost outlay.
Concurrently, there’s been a noticeable decrease in developer participation.
It’s possibly connected to a mix of factors. This includes cautious sentiment among potential homebuyers, rising interest rates, economic uncertainties, and the effects of cooling measures implemented in April 2023.
Market watchers also highlight robust competition arising from limited project launches in the Clementi area.
Significant private residential developments nearby, like KI Residences At Brookvale, Clavon, and Parc Clematis, contribute to this competitive landscape.
They suggested that developers may be leveraging the consistent demand for private homes in the region, considering the successful uptake rates of nearby projects.
Further underscoring Clementi’s strategic allure, analysts note its popularity among families, international students, and HDB upgraders.
The site, situated between two existing condominiums (The Clement Canopy and Clavon), is expected to house around 500 residential units.
Projections indicate estimated selling prices ranging between $2,300 to $2,500 per square foot.
The demand could be further reinforced by Clementi’s proximity to well-established educational institutions and business parks in Jurong Lake District, Buona Vista, and one-north.
With that said, the attention garnered by the Clementi Avenue 1 GLS site is not only due to its winning bid but is also influenced by broader real estate dynamics in the region.
The interplay of factors such as location appeal, market competition, and economic conditions will likely shape the trajectory of this upcoming private residential project.