"The Urban Redevelopment Authority (URA) has launched a residential site at Clementi Avenue 1 for sale by public tender on 28 February. This 99-year leasehold site – spanning 16,542.7 sq m - can potentially yield up to 640 residential units, according to the URA.
We expect the site to potentially attract 4-6 bids, fewer than the seven bids we saw at the Kampong Java private residential site that closed in January 2019 (with a winning bid of SGD418 million), as this site is relatively larger. There is a cap of 640 units, which conforms to the minimum average size guideline of 85 sq m (915 sqft). There is also a requirement to provide a Childcare Centre (CCC), for a minimum of 10 years from the date of issuance of CCC licence. The Gross Floor Area (GFA) of the CCC shall be a minimum of 700 sq m and is to be computed as part of the permissible GFA for the proposed development. The CCC is estimated to accommodate a total capacity of 150 children (including infants).
We estimate the top bid could potentially come in at SGD520 million or SGD830 per square foot per plot ratio (psf ppr). This could put potential average selling price at SGD1,400 psf.
The project next door – The Clement Canopy - which was launched in February 2017, was fully sold by January 2019. It achieved an average selling price of SGD1,374 psf. The site was tendered in December 2015, with a top bid of SGD302 million or SGD615 psf ppr among six bids.
Two kilometres out at West Coast Vale, Whistler Grand has sold 260 units of total 716 units, at an average price of SGD1,345 psf, since its launch in November 2018. Meanwhile, the adjacent Twin Vew (also in West Coast Vale), which was launched in May 2018, already sold 454 of total 520 units at an average price of SGD1,382 psf."