Has Clementi become prime real estate in Singapore?

Before we point out why Clementi deserves prime real estate credentials, we’ll reiterate two attributes that make any housing estate in Singapore worth a second look: location and amenities. Location here mainly refers to being located close to the Central Business District (CBD). For HDB estates far from the CBD (i.e. less than ideal location), the government diligently makes up for it with amenities, as we’ve seen in the transformation of Punggol. Both attributes can increase quality of life and hence demand for housing in these areas, which is always good news to homeowners and property investors alike.

And over the past decade, the plus points — location and amenities-wise — for towns in the West of Singapore have been steadily increasing. Jurong and Queenstown were probably the most hyped about towns over the past few years. Clementi, however, is seldom mentioned in the same breath, but here’s why we think it should:

#1: Clementi isn’t dependant on its own success (or failure)

Let us explain. Unlike Jurong, whose fortunes are tied to the future success of the Jurong Lake District and mega-projects such as the Jurong Region Line and KL-Singapore High-Speed Rail, Clementi doesn’t have much hype going for it. Conceived in the late 1970s, Clementi simply hasn’t figured in any major, estate-transforming government initiatives; all that has changed in Clementi in recent years is the construction of a modestly-sized shopping mall next to the MRT station and a number of new HDB blocks.

So, it’s not so much purposeful planning, but by accident that Clementi now enjoys the best of both worlds. Over the years, the town has found itself sandwiched in-between the Jurong East commercial-business hub and Singapore’s true “second CBD” at Buona Vista. Jurong has a vibrant commercial cluster (JEM, Westgate etc.) and the International Business Park, whereas Buona Vista has one-north, a technology-oriented, research and development precinct that has truly taken off with prestigious tenants such as Shell and P&G setting up offices there.

What this means is that, Clementi gets to enjoy the success of neighbouring developments if they happen, but the town won’t go down the dumps if one of these developments were to fail. So, for property in Clementi, there is both present value and potential upsides.

Possible future boost: The government has announced time and again that there will be plenty of new office spaces and job opportunities springing up in the Jurong Lake District over the next few years. For assured Clementi residents, this would be a good-to-have — not a die-die must happen — thanks to the already bustling Buona Vista.

#2: Clementi is actually an elitist in disguise, when it comes to schools

If Clementi was to be hyped up, we’d be saying that it’s the Singapore equivalent of England’s Cambridge town. But even if we don’t overstate facts, it’s quite clear that only Clementi can lay claim to the title of a “university town” in Singapore. You see, the National University of Singapore (NUS) is right next to Clementi, and we reckon that the proximity to NUS has made Clementi an attractive place to stay for student tenants. Singapore’s sixth autonomous university, the Singapore University of Social Sciences (SUSS), is also in close proximity to Clementi.

Here’s a select list of educational institutions within close proximity to Clementi town, which altogether makes it an ideal place to raise a family:

• NUS
• SUSS
• Singapore Polytechnic
• Ngee Ann Polytechnic
• NUS High School of Math and Science
• Nan Hua High School
• Nan Hua Primary School

Possible future boost: We don’t know if student intake will increase for the two universities in the future, but a dive into our data already shows that rental psf figures for HDB resale flats in Clementi matches that of more centrally-located estates, even though average sale prices for flats in Clementi are cheaper. This is a unique observation.

So, you can conceivably buy a cheaper resale flat in Clementi and in the meantime free up your financial resources for other forms of investment. After living in the cheaper flat for five years, you can then upgrade to a private property and rent out the flat for rental income. Now, the above is a reassuring piece of data that points to potentially higher rental yield for Clementi HDB flats, as compared to other HDB estates.

#3: Clementi has entered the HDB million dollar club

Remarkably, Clementi is the furthest estate from the CBD in which a flat has been sold for over a million dollars. Last year, two 5-room flats from the Clementi Towers project was transaction for over $1 million each. Perhaps we can attribute this performance to Points #1 and #2.

It also helps that Clementi Towers is integrated with a shopping mall and a bus interchange, and has a direct link to Clementi MRT station, making it the first HDB project in Singapore to be integrated with a transport hub. Completed in 2012, a unit there now fetches an average price of $816 per square feet (Q1 and Q2 2018). This is a higher psf price than a unit at the far more centrally-located Kim Tian Green — in Tiong Bahru — and a DBSS unit at City View @ Boon Keng, as the chart below shows:

Possible future boost: As several new HDB projects in Clementi approach their Minimum Occupation Period (MOP), many owners in these projects will hope that the prices of Clementi Towers are a sign that they can land a big profit if they sell.

If they don’t, they can look forward to the Cross Island Line (CRL). When it’s complete in 2030, the CRL will connect Changi Airport and Jurong via Bukit Timah, Ang Mo Kio and Pasir Ris. There will not only be one, but three stations to be accessible to Clementi residents (at West Coast, Clementi Central and Ulu Pandan).

Besides being a connectivity boon to residents, the CRL can potentially give property sale and rent transaction prices an uplift.

Upcoming properties in Clementi to watch

Clementi used to be a predominantly HDB estate, but there have been condominium projects springing up in the past few years. Recent projects include The Clement Canopy at Clementi Avenue 1 (TOP: 2020) and Parc Clematis at Jalan Lempeng (TOP: 2023).

Also watch out for Clavon, an upcoming new launch at Clementi Avenue 1 by developer UOL/UIC. Targeted for completion in 2024, Clavon’s 178,074.90 square foot site is expected to yield up to 640 private residential units, and is located near to NUS, NUS High School of Math and Science and Nan Hua High School.

Voice your thoughts in the comments section or on our Facebook community page.

 

If you found this article helpful, 99.co recommends Resale flat in Clementi fetches over $1m and Neighbourhood guides: Cool hangouts in Clementi you’d need to discover

Looking for a property? Find your dream home on Singapore’s largest property portal 99.co!

Earlier, we wrote about how Canberra is poised to become the next big town. With a number of new condos, HDB flats and ECs in the area, millennials are moving there in droves. Canberra Residences is one of these condos, and there are a handful of two-bedders in the $800k to $1 million range waiting to change hands (some are even above 1,000 sq ft in size). Surrounded by greenery and not many people at all, living at this low-rise condo would undoubtedly give the young demographic more chill than Netflix. It’s for this tranquility that ground-floor units here deserve a second look.

And believe it or not, you can get a two-bedroom duplex penthouse here for under $1 million (see floor plan below).

Although Canberra MRT station only opens towards the end of 2019, we feel that is worth the wait. Canberra, located on a site sandwiched between two more mature estates, could also see an upside in property value similar to one that Buangkok experienced.

**[Browse all listings for sale at Canberra Residences]

Condos near MRT #4: The Tennery

Nearest MRT: Bukit Panjang (5 mins walk)
Past 6 months average sale psf transaction price: $1,150.40
No. of units: 388
Completed: 2013
Tenure: 99-year leasehold

If you believed in rebirth, you’d also believe in this condo. Located near to Bukit Panjang MRT station, The Tennery is part of a mixed-use project that was redeveloped from the failed Ten Mile Junction mall and the soon-to-be-shuttered LRT station within the building. The concept for the new condo was undoubtedly unique; developer Far East Organization decided that residential units at The Tennery were to take the form of SOHO-style loft apartments, complemented with innovative facilities such as ‘Meeting Pods’ that facilitate remote working. A decent-sized, 800+ sq ft two-bedder home-cum-office here costs below $1 million.

The Tennery also comes with a sizeable lap pool, and a tennis court that looks like it’s suspended in mid-air.

Besides Bukit Panjang MRT station, residents also have easy access to daily necessities and shopping at Hillion mall and Bukit Panjang Plaza.

**[Browse all listings for sale at The Tennery]

Condos near MRT #5: La Fiesta

Nearest MRT: Sengkang (3 mins walk)
Past 6 months average sale psf transaction price: $1,252
No. of units: 810
Completed: 2017
Tenure: 99-year leasehold

La Fiesta is like something that came straight out of a millennial’s wishlist. How else do you explain a condo that features a 1000-year old olive tree transplanted from Spain? How about your very own teppanyaki and pizzeria pavilion in addition to BBQ pits? Or a kitschy recreation of the famous Toa Payoh Dragon Playground? An instaworthy “Tea Garden”? The list goes on.

Well, even if these unique facilities won’t matter to everyone, the newly-completed condo does have very practical selling points. Not only do units not feature bay windows nor a space-consuming household bomb shelter, it’s also one of the rare newer condos to come with a fully-enclosed kitchen — great for the millennial Masterchef who absolutely hates cleaning up afterwards.

Best of all, residents have literally everything at the doorstep. Other than Sengkang MRT station, there’s Compass One shopping mall and the newly-opened Sengkang General and Community Hospital.

**[Browse all listings for sale at La Fiesta]

Verdict: Affordable condos near MRT without having to own a car? We’re not sure if that’s fashionable, but it’s definitely doable.

Know any more condos near MRT worthy of our list? Share them with us in the comments section or on our Facebook community page.

 

If you found this article helpful, 99.co recommends 9 milestones to hit before you buy your first condo [July 2018 update] and 5 Most Insta-worthy Condos in Singapore [2018 edition]

Looking for a property? Find your dream home on Singapore’s largest property portal 99.co!