Government launches tender for Clementi Avenue 1 site
By Timothy Tay
/ EdgeProp |
A government land sales (GLS) site at Clementi Avenue 1 was launched for sale today. The 178,064 sq ft plot will have a tenure of 99 years, and can accommodate a development with up to 640 units. The site is listed under the Confirmed List of the 1H2019 GLS programme.
The cap of 640 units conforms to the minimum average size guidelines of 915 sq ft. The new development must also include a childcare centre for at least 150 children, which has to operate for at least 10 years, says Tricia Song, head of research for Singapore at Colliers International. The minimum gross floor area of the centre will be part of the permissible gross floor area of the new development, she adds.
The site is bounded by the Ayer Rajah Expressway and Clementi Ave 1. According to Lee Sze Teck, head of research at Huttons Asia, the site is in a mature estate with plenty of amenities and good schools. Thus, “there is potential demand from upgraders and investors”, he says.
Credit: URA
The new development will be close to The Clement Canopy, a 505-unit condominium by UOL Group and Singapore Land. The Clement Canopy was fully sold by January this year, close to two years after launch. “This is a testament to the strong demand for private homes in the Clementi estate,” says Lee. He expects the tender for the site to see between five and eight bids, with the top bid likely to range from $800 psf to $850 psf per plot ratio (ppr).
Meanwhile, Colliers’ Song expects four to six bids, with a top bid of about $830 psf ppr, due to the large size of the site. She expects the average selling price of the new development to be $1,400 psf ppr, compared to the $1,374 psf average selling price achieved at The Clement Canopy. UOL bested five other bids with a top bid of $302 million, or $615 psf ppr, to win the site in 2015.
The public tender will close on July 3, together with an EC site along Canberra Link that was launched in May last year.
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