UOL and UIC are Top Bidders for Clementi Avenue 1 Site

A land plot near Clementi Avenue 1 has gone to a UOL-UIC tie-up. The location is a prime spot for new residential development; here’s what to look out for:

The Clementi Avenue 1 Site

The site is located near NUS, NUS High School, and Nan Hua. It’s also within the proximity of One North, Science Park, and Ayer Rajah Crescent, popular work area for tech start-ups. The plot has a Gross Floor Area (GFA) of 57,900 square meters, and is zoned for pure residential use on a 99-year lease.

The tender closed yesterday, with units of UOL Group and United Industrial Corporation (UIC) placing the top bid of $491.3 million. This is roughly $788.31 per square foot. The next highest bidder, MCL Land, had bid $471 million, while Sing Properties and MCC Land had made a joint offer of $452.3 million.

UOL group told media that their plans involve a 40-storey project, comprising 640 units, to take advantage of the area’s open view.

Our outlook on the plot

Based on the location, we feel the main appeal will be to investors. Rentability will be high, given the large number of tech start-ups (many of which employ foreigners) in the location. Landlords can also find student renters, who prefer to live off-campus or can’t get a dorm room for some reason.

Amenities wise, the area is fairly average – there are a lot of food options nearby, especially in the One North area; but there’s not much in the way of retail. There’s a Cold Storage in One North though, so that helps for groceries. For entertainment, residents had best be prepared to travel; you won’t find much in the way of cinemas or nightlife here. Accessibility can be a slight issue, if the condo doesn’t provide a shuttle bus to nearby MRT stations like One North (but we assume this will be the case).

It’s a pleasant and very open area; traffic and noise issues are mostly nonexistent. This will appeal to foreigners who are still in a state of shock at Singapore’s urban density. But for those who want a bit of excitement, that’s exactly will they’ll find: a very little bit and that’s it.

The new Normanton Park may provide some competition

We note that the new Normanton Park (by Kingsford) is a large project, and one that’s been hit by a no-sale license. The new Normanton Park will put 1,864 new units into the same general area; and as there’s a no-sale licensed, the developer will be in a big rush to sell (developers need to complete and sell a project in five years, or else pay the full ABSD).

This means a lot of potentially great value buys, and people working in the area might be drawn to this instead. Landlords may also see some competition, as the new Normanton Park can also provide nearby housing to One North, Science Park, and Ayer Rajah Crescent. In fact, many of the advantages and drawbacks we spotted for the new Normanton Park can be applied to any development on the Clementi Avenue 1 plot.

What do you think about the new Clementi Avenue 1 site? Voice your thoughts in our comments section or on our Facebook community page.

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